FHA MIP Chart 2026: Upfront & Annual Mortgage Insurance Premiums
Every FHA loan requires mortgage insurance premium (MIP). In 2026, the upfront MIP is 1.75% and the annual MIP ranges from 0.15% to 0.75%. Here's the complete rate chart, real cost examples, and exactly when MIP can be removed.
Upfront MIP
1.75%
Annual MIP (Most)
0.55%
$300K Monthly
$137/mo
Can Cancel?
10%+ Down
Quick Answer: What Is FHA MIP in 2026?
FHA MIP has two components: (1) Upfront MIP (UFMIP) of 1.75% paid at closing or financed into the loan, and (2) Annual MIP paid monthly as part of your mortgage payment. The annual rate depends on your loan term, LTV ratio, and loan amount. Most 30-year borrowers with 3.5% down pay 0.55% annual MIP.
Example: $300,000 loan → Upfront MIP = $5,250 (financed) → Annual MIP = $1,650/year ($137.50/month). Total MIP in year one: ~$6,900. Get pre-approved to see your exact MIP cost.
FHA Upfront Mortgage Insurance Premium (UFMIP) 2026
UFMIP Rate
1.75%
of base loan amount
$300K Loan
$5,250
usually financed into loan
$500K Loan
$8,750
usually financed into loan
Key fact: The UFMIP is the same regardless of credit score, LTV, or loan term. It can be financed into the loan (most borrowers do this) so you don't pay it out of pocket at closing. On a $300K loan, financing the UFMIP increases your loan to $305,250.
FHA Annual MIP Rate Chart 2026 (Complete)
Annual MIP is paid monthly as part of your mortgage payment. The rate depends on three factors: loan term, LTV ratio, and whether your loan exceeds $726,200.
30-Year Term (Loan Amount ≤ $726,200)
| LTV (Loan-to-Value) | Annual MIP Rate | Monthly on $300K | Duration |
|---|---|---|---|
| ≤ 90% (10%+ down) | 0.50% | $125/mo | 11 years |
| 90.01% - 95% (5-10% down) | 0.50% | $125/mo | Life of loan |
| > 95% (less than 5% down) | 0.55% | $137.50/mo | Life of loan |
30-Year Term (Loan Amount > $726,200)
| LTV (Loan-to-Value) | Annual MIP Rate | Monthly on $800K | Duration |
|---|---|---|---|
| ≤ 90% (10%+ down) | 0.70% | $467/mo | 11 years |
| 90.01% - 95% (5-10% down) | 0.70% | $467/mo | Life of loan |
| > 95% (less than 5% down) | 0.75% | $500/mo | Life of loan |
15-Year Term (All Loan Amounts)
| LTV (Loan-to-Value) | Annual MIP Rate | Monthly on $300K | Duration |
|---|---|---|---|
| ≤ 78% | 0.15% | $37.50/mo | 11 years |
| 78.01% - 90% | 0.40% | $100/mo | 11 years |
| > 90% | 0.40% | $100/mo | Life of loan |
Source: HUD Mortgagee Letter 2023-05 (rates unchanged for 2026). MIP rates are calculated on the outstanding principal balance annually, paid monthly.
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Real FHA MIP Cost Examples (2026)
$350,000 Home
3.5% ($12,250) downLife of loan (LTV > 95%)
$500,000 Home
3.5% ($17,500) downLife of loan (LTV > 95%)
$350,000 Home
10% ($35,000) downDrops after 11 years!
$250,000 Home
3.5% ($8,750) downLife of loan (LTV > 95%)
Compare FHA Rates & Total MIP Cost
Different lenders offer different FHA rates. Lower rate = lower MIP base. Compare 5+ lenders to find the cheapest FHA loan.
FHA MIP vs Conventional PMI: Side-by-Side
| Feature | FHA MIP | Conventional PMI |
|---|---|---|
| Upfront Cost | 1.75% (financed) | None |
| Annual Rate | 0.15% - 0.75% | 0.5% - 1.5% |
| Monthly ($300K, 5% down) | $137.50 | $125-$375 |
| Cancellation | Life of loan (<10% down) | Auto at 78% LTV |
| With 10% Down | Drops after 11 years | Auto at 78% LTV (~8 years) |
| Min Credit Score | 580 (3.5% down) | 620+ required |
| Rate Affected by Credit? | No (fixed rates) | Yes (higher for lower credit) |
| Tax Deductible | Yes (if itemizing) | Yes (if itemizing) |
When FHA MIP wins: Credit score below 700 (PMI rates are much higher for lower scores). When conventional PMI wins: Credit 740+ and planning to stay long-term (PMI cancels, MIP doesn't). Compare both options from multiple lenders.
How to Remove FHA MIP (3 Strategies)
1. Refinance to Conventional (Most Common)
Once you have 20% equity (through payments + appreciation), refinance to a conventional loan with no PMI. This is the most popular exit strategy for FHA borrowers.
Typical timeline: 3-5 years with normal appreciation. Cost: $2,000-$5,000 in refinance closing costs. Savings: $137/month MIP = $1,650/year.
2. Put 10% Down (MIP Drops After 11 Years)
If you can put 10% or more down, your MIP automatically cancels after 11 years. No refinance needed.
Math: On a $300K loan, 10% down = $33,333 vs 3.5% = $11,667. Extra $21,667 upfront saves you ~$16,500 in MIP (years 12-30).
3. Make Extra Payments to Build Equity Faster
While MIP doesn't cancel based on equity for FHA loans, building equity faster lets you refinance to conventional sooner.
Strategy: Pay extra $200/month toward principal → reach 20% equity 3-4 years sooner → refinance and eliminate MIP entirely.
Frequently Asked Questions
What is the FHA MIP rate for 2026?
How long do you pay FHA MIP?
Is FHA MIP tax deductible in 2026?
Can I get an FHA loan refund on MIP?
Why is FHA MIP so expensive?
People Also Ask (Voice Search)
Real questions about FHA mortgage insurance — with exact 2026 answers.
“how much is fha mortgage insurance on a 300000 loan?”
On a $300K FHA loan with 3.5% down: Upfront MIP = $5,250 (1.75%, financed into loan). Annual MIP = $1,650/year or $137.50/month (0.55%). Total first-year MIP = ~$6,900. Over 30 years: ~$49,500 in MIP. This is why refinancing to conventional at 20% equity saves tens of thousands. Compare FHA lenders & rates →
“can i remove fha mortgage insurance early?”
Only if you put 10%+ down (MIP drops after 11 years). With 3.5% down, MIP lasts the LIFE of the loan. To remove early: refinance into a conventional loan once you reach 20% equity. With 3-5% annual home appreciation, most reach 20% equity in 3-5 years.
“is fha mip the same as pmi on a conventional loan?”
No. FHA MIP: required on ALL FHA loans, 0.55%/year, lasts life of loan (with <10% down). Conventional PMI: only with <20% down, 0.5-1.5%/year (varies by credit), automatically cancels at 78% LTV. PMI penalizes low credit; FHA MIP is the same rate regardless of score. Compare FHA lenders & rates →
“how do i avoid paying fha mortgage insurance?”
3 ways: (1) Put 10%+ down — MIP cancels after 11 years. (2) Use a conventional loan instead if you have 620+ credit (PMI cancels at 20% equity). (3) Refinance from FHA to conventional once you have 20% equity. Option 3 is most common — saves $137+/month on a $300K loan.
“what is the upfront fha mip fee and can i finance it?”
Upfront FHA MIP is 1.75% of the loan amount. On $300K = $5,250. YES, you can finance it into the loan (add to loan balance). Most borrowers finance it to avoid out-of-pocket cost. This increases your monthly payment by ~$35/month on a $300K loan. Compare FHA lenders & rates →
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Sarah Mitchell
VA & FHA Loan Specialist · NMLS #389201
Sarah has 12+ years of experience with FHA and government-backed loans. She has helped over 800 first-time homebuyers navigate FHA requirements, MIP costs, and loan limits to achieve homeownership with minimal down payment.