FHA Loan Calculator · Practical guide
How Much Is FHA Mortgage Insurance per Month?
FHA monthly MIP is typically 0.55% of the loan per year, divided by 12 — about $133 a month on a $289,500 loan.
At a glance
The Short Answer
FHA annual mortgage insurance is usually 0.55% of the base loan amount per year, paid monthly. That works out to about $132.69 per month on a $289,500 loan — the base amount on a $300,000 home with 3.5% down. The calculator above shows your exact monthly MIP next to your principal and interest payment.
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Enter your own values, then compare the result with the examples below.
Monthly MIP by Loan Amount
| Base Loan Amount | Annual MIP (0.55%) | Monthly MIP |
|---|---|---|
| $200,000 | $1,100 | $91.67 |
| $250,000 | $1,375 | $114.58 |
| $300,000 | $1,650 | $137.50 |
| $400,000 | $2,200 | $183.33 |
MIP Has Two Parts
Do not confuse the monthly premium with the upfront one. FHA mortgage insurance includes an upfront MIP of 1.75% — $5,066.25 on that same $289,500 loan, usually rolled into the loan balance — plus the annual MIP collected in monthly installments. Both are required regardless of your down payment size.
How Long You Pay It
With less than 10% down, annual MIP lasts for the life of the loan — the only way out is to refinance into a conventional mortgage once you have enough equity. With 10% or more down, MIP ends after 11 years. Over 30 years, $132.69 a month adds up to roughly $47,800, which is why many FHA borrowers plan to refinance once they reach 20% equity.
MIP vs PMI
FHA's MIP is not the same as conventional PMI. PMI rates vary with credit score and cancel automatically at 78% loan-to-value; MIP rates are standardized and, with a small down payment, effectively permanent without a refinance.
Frequently Asked Questions
Is the 0.55% MIP rate fixed?
0.55% is the standard rate for 30-year FHA loans with the minimum down payment. Shorter terms, larger down payments, or smaller loan amounts can qualify for lower annual rates, which you can enter directly in the calculator.
Can I pay the upfront MIP in cash instead?
Yes. You can pay the 1.75% upfront premium at closing instead of financing it. That lowers your loan balance and monthly principal-and-interest payment slightly.
Does monthly MIP go down as I pay off the loan?
The annual MIP is recalculated on your average outstanding balance, so it declines slowly over time. The calculator shows the initial monthly figure based on the starting loan amount.
Is FHA MIP tax deductible?
Mortgage insurance premiums have been deductible in some tax years but not others, depending on current law and income limits. Check with a tax professional for the rules in effect when you file.