FHA loans contain two forms of mortgage insurance premiums. The first is an upfront fee that is added
to your loan amount at closing. The second is an annual fee that you pay monthly as part of your
Upfront Mortgage Insurance Premium (UFMIP)
UFMIP applies to all FHA loans. It is calculated at 1.75% of your base FHA loan, which is your home's
purchase price less your down payment.
$100,000 purchase price
- $3,500 (3.5%) down payment
= $96,500 base loan amount
$96,500 x 1.75% = $1,688 UFMIP
UFMIP is added to your base loan amount to establish your initial FHA loan balance.
Annual FHA Mortgage Insurance Premium (FHAMIP)
FHAMIP is more complicated.
FHAMIP rates vary depending upon your specific
loan parameters, particularly down payment, loan term, and interest rate. Our
FHA loan calculator accounts for each variable and precisely calculates
your full FHA loan payment, including FHAMIP.
Monthly FHAMIP on a 30-year FHA loan with a $100,000 purchase price, $3,500 down payment,
and 3.5% interest rate is $67.76.