FHA mortgage insurance (MIP) protects the lender and is required on FHA loans. Most borrowers pay an upfront premium plus an annual premium that is collected monthly with the mortgage payment.
Two premiums, one purpose: making flexible FHA financing possible.
Typically 1.75% of the base loan amount. Most buyers finance it into the loan rather than writing a larger check at closing.
Charged as an annual rate, then divided into monthly installments collected with your mortgage payment.
Unlike conventional PMI, you generally cannot skip MIP by putting 20% down on an FHA purchase.
MIP does not cover fire, liability, or personal property — that is your hazard policy.
Always compare FHA payment with MIP against conventional payment with PMI for your score and down payment.
Your monthly MIP is not random — a few file inputs drive the factor.
The right choice depends on credit, cash, and how long you will keep the loan.
No surprises at closing — you will know the monthly and lifetime cost picture.
Step 1
Upfront MIP and monthly MIP side by side.
Step 2
Payment quotes always include MIP when FHA applies.
Step 3
FHA MIP vs. conventional PMI for your score.
Step 4
Duration rules and refinance options if MIP outlasts your goals.
Related guides to help you compare options and move toward pre-approval.
2MG Daily
Recent articles from our blog on FHA MIP, payments, and homebuying.
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MIP is FHA mortgage insurance. It includes an upfront mortgage insurance premium (commonly 1.75% of the base loan amount) and an annual MIP paid monthly.
No. PMI is private mortgage insurance on conventional loans and is usually cancellable at 20% equity. FHA MIP often lasts much longer — sometimes for the life of the loan when you put less than 10% down.
Yes. Most borrowers roll the upfront MIP into the loan balance instead of paying it in cash at closing.
No. MIP protects the lender/investor. You still need homeowners insurance for the property itself.
We will show principal, interest, taxes, insurance, and MIP — then compare it with conventional PMI for your scenario.