Upfront MIP
One-time premiumMost FHA loans charge 1.75% of the base loan amount. It may be financed into the mortgage or paid entirely in cash.
Utah FHA mortgage insurance guide
FHA loans generally include an upfront premium and an annual premium paid monthly. Learn what each one costs, how it affects your payment, and how long it may remain.
Your exact premium and duration depend on the loan term, base loan amount, loan-to-value ratio, and current FHA requirements.
Most FHA loans charge 1.75% of the base loan amount. It may be financed into the mortgage or paid entirely in cash.
The annual premium is divided into monthly installments. Its rate and duration vary by loan term, amount, and LTV.
Upfront MIP is charged once. Annual MIP is collected through monthly installments.
Compare mortgage insurance alongside the rate, principal, taxes, insurance, and HOA dues.
The assessment period depends on the original LTV, mortgage term, and applicable FHA rules.
FHA MIP has two parts
One premium is charged when the FHA loan is created. The other is assessed annually and collected through the monthly mortgage payment.
Most FHA mortgage programs use a 1.75% upfront mortgage insurance premium.
FHA assesses an annual premium and divides the required amount into monthly installments.
This example isolates the upfront premium and does not estimate the annual MIP or complete monthly payment.
2026 FHA annual MIP chart
The annual MIP rate and assessment period depend on the mortgage term, base loan amount, and original loan-to-value ratio.
Base loan of $726,200 or less: 55 bps for the mortgage term. This commonly includes a minimum-down-payment FHA purchase.
Base loan of $726,200 or less: 50 bps for 11 years rather than the full mortgage term.
| Base loan amount | Original LTV | Annual MIP | Duration |
|---|---|---|---|
| $726,200 or less | 90% or below | 0.50% / 50 bps | 11 years |
| $726,200 or less | Over 90% through 95% | 0.50% / 50 bps | Mortgage term |
| $726,200 or less | Over 95% | 0.55% / 55 bps | Mortgage term |
| Over $726,200 | 90% or below | 0.70% / 70 bps | 11 years |
| Over $726,200 | Over 90% through 95% | 0.70% / 70 bps | Mortgage term |
| Over $726,200 | Over 95% | 0.75% / 75 bps | Mortgage term |
| Base loan amount | Original LTV | Annual MIP | Duration |
|---|---|---|---|
| $726,200 or less | 90% or below | 0.15% / 15 bps | 11 years |
| $726,200 or less | Over 90% | 0.40% / 40 bps | Mortgage term |
| Over $726,200 | 78% or below | 0.15% / 15 bps | 11 years |
| Over $726,200 | Over 78% through 90% | 0.40% / 40 bps | 11 years |
| Over $726,200 | Over 90% | 0.65% / 65 bps | Mortgage term |
Source: FHA Single Family Housing Policy Handbook 4000.1, Appendix 1.0 - Mortgage Insurance Premiums, effective March 20, 2023; handbook last revised August 12, 2026. Program exceptions may apply.
Your FHA payment
FHA mortgage insurance reaches your payment in two different ways: upfront MIP can increase the financed loan balance, while annual MIP is collected as a monthly charge.
On a $350,000 base loan, 1.75% upfront MIP is $6,125. If financed, the starting loan balance becomes $356,125, so principal and interest are calculated on the higher amount.
The annual premium is divided into monthly installments. Its rate depends on the loan term, base loan amount and loan-to-value ratio—not simply the home price.
MIP duration
For most current FHA loans, the answer depends on the loan-to-value ratio when the mortgage begins—not how quickly the home appreciates afterward.
These durations apply to standard FHA forward mortgages under the current MIP chart.
Annual MIP is generally assessed for 11 years.
Annual MIP is generally assessed for the mortgage term.
Compare mortgage insurance
Both protect the lender—not the borrower—but they are priced, structured and removed differently. The less expensive loan depends on the complete borrower profile and loan terms.
Educational sources: FHA Handbook 4000.1, Appendix 1.0; Consumer Financial Protection Bureau PMI cancellation guidance. Conventional PMI cancellation requirements and exceptions depend on the loan and payment history; confirm eligibility with the servicer.
Plan the complete cost
There is no waiver code that makes standard FHA mortgage insurance disappear. The useful strategies change the loan amount, MIP rate, MIP duration or future loan structure.
A larger down payment lowers the base loan amount. For modern FHA loans, an original LTV of 90% or less also generally changes annual MIP from a mortgage-term charge to an 11-year charge.
Potential result: a smaller dollar premium and a defined MIP end date.
FHA’s annual MIP chart generally uses lower rates for mortgage terms of 15 years or less. The tradeoff is faster principal repayment, which can create a higher principal-and-interest payment.
Potential result: less interest and a lower MIP rate, but a higher required payment.
Because upfront MIP is calculated from the base loan amount and annual MIP is charged on the mortgage balance, a smaller loan can reduce the dollar cost. Keep enough cash for closing, repairs and emergencies.
Potential result: lower financed UFMIP, monthly MIP and principal-and-interest expense.
If equity, credit and market conditions improve, refinancing into a conventional mortgage may remove FHA MIP. Compare the new rate, closing costs, loan term and total payment before proceeding.
Potential result: no FHA MIP—but only worthwhile when the complete refinance math works.
A stronger homebuying plan balances the monthly payment with cash to close and reserves after closing. The right structure should remain comfortable after moving expenses, repairs and the surprises that come with ownership.
Educational guidance based on FHA Handbook 4000.1 mortgage-insurance parameters and Appendix 1.0. Exact MIP depends on the applicable FHA program, base loan amount, original LTV and mortgage term.
FHA MIP questions
Clear answers to the cost, duration and cancellation questions Utah homebuyers ask most often.
Answers reflect standard FHA forward-mortgage guidance in FHA Handbook 4000.1 and Appendix 1.0. Program exceptions may apply.
FHA mortgage insurance protects the lender and FHA insurance fund if a borrower defaults. Most standard FHA loans include two charges: a one-time upfront mortgage insurance premium and an annual premium collected in monthly installments. It does not replace homeowners insurance or protect the borrower’s belongings.
For most FHA forward mortgages, upfront MIP is 1.75% of the base loan amount. For example, a $350,000 base loan produces $6,125 of upfront MIP. Certain specialized FHA programs and qualifying older-loan refinances have different rules.
Yes. FHA generally allows upfront MIP to be financed entirely into the mortgage or paid entirely in cash. It is not normally split between the two, except for a rounding amount of less than $1. Financing it increases the starting loan balance and the principal-and-interest calculation.
The applicable annual MIP rate is based on the mortgage’s original loan-to-value ratio, base loan amount and term. It is not a single universal rate for every FHA borrower. The annual premium is then collected in monthly installments.
For FHA case numbers assigned on or after June 3, 2013, annual MIP generally lasts 11 years when the original LTV is 90% or less and for the mortgage term when the original LTV is above 90%. Older FHA loans may qualify under earlier cancellation rules, so confirm the case-number date with the servicer.
Not on a modern FHA loan when the original LTV requires MIP for the mortgage term. Extra payments reduce principal and interest expense, but they do not change the original-LTV duration rule. Earlier FHA loans may follow different cancellation standards.
Upfront MIP is generally not returned as a cash refund after payoff or sale. FHA guidance provides a possible credit connected with refinancing into another FHA-insured mortgage, subject to eligibility and timing. The lender can calculate any available credit for a specific FHA-to-FHA refinance.
Potentially. A borrower who later qualifies for a conventional loan may be able to refinance out of FHA MIP. Compare the new interest rate, closing costs, loan term, monthly payment and break-even period first. Removing MIP alone does not guarantee that refinancing saves money.
No. FHA mortgage insurance is part of an FHA-insured loan and follows HUD’s premium and duration rules. Private mortgage insurance is used with conventional financing and has different pricing and cancellation standards. Compare both loan options using the same purchase price and down payment.
No. Standard FHA mortgage insurance still applies even with 20% down. However, an original LTV of 90% or less generally limits annual MIP to 11 years on a modern FHA loan. A conventional loan without monthly PMI may also be worth comparing.
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