Mortgage Insurance Premium (MIP)
Mortgage insurance premium (MIP) is the insurance charged on FHA loans, paid both upfront and annually.
What Mortgage Insurance Premium (MIP) means
The upfront MIP is 1.75% of the loan, added to the balance, and the annual MIP runs about 0.15%–0.55%. On most FHA loans with low down payments, annual MIP lasts the life of the loan.
Florida example
A Florida FHA borrower on a $300,000 loan pays $5,250 upfront MIP plus roughly $137 a month in annual MIP. Refinancing into a conventional loan once they hit 20% equity is the usual way to shed it.
What MIP is
The mortgage insurance premium, or MIP, is the insurance charged on FHA loans. It includes an upfront fee plus an annual amount split into your payments.
MIP lets FHA offer low down payments while protecting the program.
What to expect
On most FHA loans, MIP stays for the life of the loan unless you refinance out of FHA. That is a key cost to weigh.
We compare FHA against other loans so you see the true cost. Reach out and we will run the numbers for you.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).