FHA MIP rates (HUD, in effect 2026)
HUD sets FHA mortgage insurance in Mortgagee Letter 2023-05, effective for case numbers endorsed on or after March 20, 2023 and incorporated into Handbook 4000.1, Appendix 1.0. It is the current table in 2026. Upfront MIP is 1.75% of the base loan amount on all standard purchase and refinance loans. Annual MIP, for loans with a term of more than 15 years:
| Base loan amount | LTV | Annual MIP | Duration |
|---|---|---|---|
| Up to $726,200 | ≤ 90% | 0.50% | 11 years |
| Up to $726,200 | > 90% to 95% | 0.50% | Mortgage term |
| Up to $726,200 | > 95% | 0.55% | Mortgage term |
| Over $726,200 | ≤ 90% | 0.70% | 11 years |
| Over $726,200 | > 90% to 95% | 0.70% | Mortgage term |
| Over $726,200 | > 95% | 0.75% | Mortgage term |
For terms of 15 years or less, annual MIP is 0.15% at 90% LTV or less and 0.40% above 90% (base loans up to $726,200); above $726,200 it is 0.15% up to 78% LTV, 0.40% up to 90% and 0.65% above 90%. The calculator applies the full table, including 15-year loans.
How the payment is calculated
The base loan is the price minus the down payment, and LTV is the base loan divided by the price. Principal and interest use the standard fixed-rate formula (r = annual rate ÷ 12, n = months). Annual MIP is charged monthly on the year's average scheduled balance, so it steps down a little each year; the total shown adds it up for as long as it lasts.
Worked example
A $400,000 home with 3.5% down ($14,000) gives a base loan of $386,000 and 96.5% LTV. The upfront premium is $6,755, so the loan becomes $392,755 and principal and interest at 6.5% over 30 years is $2,482.48. Annual MIP is 0.55% for the life of the loan: about $176.02 a month in year one and $41,658 over 30 years. With 10% down instead, MIP drops to 0.50% and ends after 11 years, for $18,297 in total.
How this calculator works, in plain language
An FHA loan is a regular fixed-rate mortgage with government-backed insurance on top, and you pay for that insurance twice. First, a one-time charge of 1.75% of the amount you borrow, which most people add to the loan. Second, a yearly charge that HUD sets as a percentage of the loan, collected in your monthly payment. The calculator works out the loan after your down payment, adds the one-time charge, figures the monthly principal and interest, then looks up the yearly percentage in HUD's table from your loan size, down payment and term. Because the yearly charge is based on what you still owe, it shrinks a little each year; the calculator adds it up for as long as HUD says it lasts.
FHA payments by scenario
Six common FHA purchases, run through the same formulas as the calculator, with MIP from HUD Mortgagee Letter 2023-05 (effective March 20, 2023, checked October 2, 2026) and upfront MIP financed. Property tax, insurance and HOA dues are left out so the loan costs compare directly. Rates are examples, not quotes.
| Scenario | Base loan | Upfront MIP | Annual MIP | P&I | MIP /mo (year 1) | P&I + MIP | Total annual MIP |
|---|---|---|---|---|---|---|---|
| $250,000 home, 3.5% down, 30 years at 6.5% | $241,250 | $4,222 | 0.55% for 30 years | $1,551.55 | $110.01 | $1,661.56 | $26,036 |
| $400,000 home, 3.5% down, 30 years at 6.5% | $386,000 | $6,755 | 0.55% for 30 years | $2,482.48 | $176.02 | $2,658.50 | $41,658 |
| $400,000 home, 5% down, 30 years at 6.5% | $380,000 | $6,650 | 0.5% for 30 years | $2,443.89 | $157.53 | $2,601.42 | $37,282 |
| $400,000 home, 10% down, 30 years at 6.5% | $360,000 | $6,300 | 0.5% for 11 years | $2,315.27 | $149.24 | $2,464.51 | $18,297 |
| $350,000 home, 3.5% down, 15 years at 6.0% | $337,750 | $5,911 | 0.4% for 15 years | $2,900.00 | $110.42 | $3,010.42 | $11,685 |
| $500,000 home, 3.5% down, 30 years at 6.75% | $482,500 | $8,444 | 0.55% for 30 years | $3,184.25 | $220.08 | $3,404.33 | $52,483 |
The 10% down row shows the biggest lever: MIP ends after 11 years, so total MIP is $18,297 against $41,658 with 3.5% down on the same home. On the $500,000 home the base loan is $482,500, below HUD's $726,200 threshold, so the standard rates apply; FHA loan limits vary by county, so check that your loan fits your county's limit.
Common FHA calculator mistakes
- Leaving out upfront MIP. Financing the 1.75% premium raises the loan and the principal-and-interest payment. On a $386,000 base loan it adds $6,755 to the balance.
- Expecting MIP to drop off as equity builds. Private mortgage insurance on a conventional loan can be cancelled once you have enough equity; FHA annual MIP with less than 10% down lasts the mortgage term under HUD's table; refinancing is the usual way to end it.
- Measuring LTV after the financed premium. HUD's table uses the base loan (before upfront MIP) divided by the property value. 3.5% down is 96.5% LTV, so the 0.55% rate applies.
- Comparing FHA and conventional by rate alone. Two loans at the same rate can cost very different amounts once mortgage insurance is added; compare the full monthly payment and how long the insurance lasts with the mortgage calculator.
- Forgetting tax, insurance and HOA dues. The lender qualifies you on the full payment, and those costs often add hundreds a month. Enter them above, then check your DTI.
FHA rules to check with your lender
- Minimum down payment: 3.5% with a credit score of 580 or higher (HUD Handbook 4000.1); lower scores need more down.
- Loan limits: FHA limits vary by county and change every year; look yours up on HUD's FHA mortgage limits page before you shop.
- Ending MIP: with less than 10% down, MIP stays for the full term. Many owners later refinance into a conventional loan once they reach 20% equity; test it with the refinance break-even calculator.
This is an estimate for planning, not a loan offer. Your lender's Loan Estimate is final.
