FHA loan payment with the 1.75% upfront MIP, the annual MIP from HUD's current table, taxes and insurance, and a check against your county's 2026 loan limit.
With less than 10% down, annual MIP lasts for the whole term; it ends early only if the loan is paid off, for example by refinancing.
Property tax and insurance are held at today's amounts; in practice both usually rise over time.
You borrow $392,755.00 ($386,000.00 plus the financed upfront premium) and pay $3,150.17 a month in the first year, including $176.02 of MIP. Annual MIP at 0.55% runs for 30 years and costs $41,658.12 in all, on top of $6,755.00 upfront and $500,936.57 of interest.
First month's payment
Principal and interest78.8%MIP5.6%Property tax11.6%Insurance4.0%
FHA allows up to 96.5% with your credit score, and the base loan must not exceed the county limit of $541,287.00.
Upfront MIP
UFMIP=1.75%×386,000.00=6,755.00
HUD does not round the premium: anything below a cent is dropped. The total loan is rounded down to the whole dollar ($392,755.00), and $0.00 is paid in cash.
HUD's method: the average of the 12 scheduled balances of the year, times the annual rate, divided by 1 plus the upfront rate because the UFMIP is financed, then divided by 12, rounding to cents at each step. It is recomputed every year (see the table).
Total monthly payment, year 1
2,482.48+176.02+366.67+125.00+0.00=3,150.17
Principal and interest, MIP, property tax, insurance and HOA dues.
About the FHA loan calculator
An FHA loan carries two mortgage insurance premiums. The upfront premium (UFMIP) is 1.75% of the base loan and is usually added to the loan. The annual premium is a rate from HUD's table, set by the term, the base loan amount and the loan-to-value ratio, and billed monthly. HUD recomputes it each year from that year's average scheduled balance, so it falls a little every year.
With the defaults, a 400,000 home with the 3.5% minimum down leaves a 386,000 base loan. The upfront premium of 6,755 brings the loan to 392,755, principal and interest at 6.5% over 30 years are 2,482.48, and first-year MIP at 0.55% is 176.02 a month, for 3,150.17 in all with property tax and insurance.
Rates are those in HUD Mortgagee Letter 2023-05, in force for loans endorsed from March 20, 2023. Enter your county's FHA limit: for 2026, one-unit limits run from 541,287 to 1,249,125.
How to calculate an FHA mortgage payment
Add the 1.75% upfront MIP to the base loan (price minus down payment), then add monthly MIP, property tax and insurance to the principal and interest. With 3.5% down on 400,000 at 6.5% over 30 years, year one costs 3,150.17 a month.
The payment, step by step
Base loan: 400,000 − 3.5% down (14,000) = 386,000, a loan-to-value of 96.5%.
Upfront MIP: 1.75% × 386,000 = 6,755. Financed, it brings the loan to 392,755.
Principal and interest: 392,755 at 6.5% ÷ 12 over 360 months = 2,482.48.
Annual MIP rate: 0.55%, for a term over 15 years, a base loan up to 726,200 and an LTV above 95%.
Monthly MIP, year 1: the year's 12 scheduled balances average 390,766.49; × 0.55% = 2,149.22; ÷ 1.0175 for the financed premium = 2,112.26; ÷ 12 = 176.02.
Tax and insurance: 1.1% of 400,000 ÷ 12 = 366.67, plus 1,500 ÷ 12 = 125.00.
The shortcut 386,000 × 0.55% ÷ 12 gives 176.92, which is 0.90 too high.
HUD's periodic-premium procedure averages the year's balances and removes the financed premium, rounding to cents at each stage. As the balance falls, so does the MIP: 173.98 a month in year 2.
FHA MIP by down payment
These rows apply HUD's table to three loans. The first is the 400,000 home above; the second is a 350,000 home at 6.25%; the third is the 400,000 home at 6.5% with 10% down.
Down payment (%)
Annual MIP rate (%)
MIP duration (years)
First-year monthly MIP
3.5
0.55
30
176.02
5
0.50
30
137.81
10
0.50
11
149.24
Monthly MIP depends on each loan's balance, so the rows compare more than the rate. Exactly 5% down is an LTV of 95%, which falls in the lower 0.50% band but still pays MIP for the whole term.
HUD's annual MIP rates
HUD Mortgagee Letter 2023-05 sets these rates for forward mortgages endorsed from March 20, 2023, by term, base loan and LTV:
Over 15 years, base loan up to 726,200: 0.55% above 95% LTV; 0.50% at 95% or less.
Over 15 years, base loan above 726,200: 0.75% above 95% LTV; 0.70% at 95% or less.
15 years or less, up to 726,200: 0.40% above 90% LTV; 0.15% at 90% or less.
15 years or less, above 726,200: 0.65% above 90% LTV; 0.40% above 78% up to 90%; 0.15% at 78% or less.
The LTV here uses the base loan, before the upfront premium is added.
The letter prints 726,200 as the high-balance threshold but describes it as the national conforming loan limit, which FHFA set at 832,750 for 2026.
On a 900,000 home with 10% down, the two readings mean 0.70% (470.11 a month) or 0.50% (335.79), so ask your lender which figure it uses.
How long FHA MIP lasts
With an LTV of 90% or less, meaning at least 10% down, annual MIP ends after 11 years. Above 90%, it runs for the whole term, limited by an earlier loan payoff, such as a refinance.
On the 400,000 home at 6.5%, 10% down starts MIP at 149.24 a month and stops it after 11 years, 18,296.88 in all. With 3.5% down, MIP runs all 30 years and totals 41,658.12.
Should you finance the upfront MIP?
HUD's upfront-premium guidance requires the premium to be either fully financed or fully paid in cash. Financing the 6,755 on the 400,000 home keeps that cash in hand at closing.
The cost is 42.70 more a month in principal and interest and 8,612.76 more interest over 30 years.
When the premium is financed, the total loan is rounded down to the whole dollar (HUD Handbook 4000.1). On a 350,000 home with 5% down, the premium is 5,818.75 and the loan becomes 338,318.
The 0.75 left over is paid in cash, so 17,500.75 is due with the down payment.
Down payment and loan limits
Minimum down payment: 3.5% with a credit score of 580 or higher, 10% from 500 to 579. Borrowers scoring below 500 are not eligible (HUD Handbook 4000.1).
Appraisal: the minimum applies to the lower of the price and the appraised value, so a low appraisal raises the cash you need.
County limit: for case numbers assigned in 2026, one-unit limits run from 541,287 to 1,249,125 (HUD Mortgagee Letter 2025-23). The limit caps the base loan; the financed premium can take the total above it.
What the estimate leaves out
The figures are an estimate for a standard FHA forward mortgage, not a loan approval; HUD policy and your lender's terms decide the actual loan. Property tax and insurance are held at today's amounts, though both usually rise over time.
The cash figure covers only the down payment and any upfront premium paid in cash. Title, lender charges and prepaid escrow come on top.
Checked against: ML 2023-05 table (over 15 years, base ≤ 726,200, LTV 96.5% > 95% → 55 bps for the term) and HUD's monthly MIP procedure on the cent-rounded schedule
15-year loan with 10% down
Home price
300,000
Enter down payment as
Percent of price
Down payment
10%
Credit score
580 or higher
Interest rate (per year)
5.75%
Loan term
15 years
FHA loan limit for your county
541,287
Property tax (per year, of home price)
1.1%
Homeowners insurance (per year)
1500
HOA dues (per month)
0
Base loan amount
270,000.00
Total loan amount
274,725.00
Principal and interest
2,281.34
Annual MIP rate
0.15%
Annual MIP charged for
11 years
Monthly MIP (year 1)
33.09
Annual MIP over the loan
3,180.12
Checked against: ML 2023-05 (15 years or less, base ≤ 726,200, LTV 90% → 15 bps for 11 years) and HUD's average-balance method
High-balance loan in a ceiling county
Home price
900,000
Enter down payment as
Percent of price
Down payment
10%
Credit score
580 or higher
Interest rate (per year)
6.5%
Loan term
30 years
FHA loan limit for your county
1,249,125
Property tax (per year, of home price)
1.1%
Homeowners insurance (per year)
1500
HOA dues (per month)
0
Base loan amount
810,000.00
Total loan amount
824,175.00
Annual MIP rate
0.70%
Annual MIP charged for
11 years
Monthly MIP (year 1)
470.11
Total monthly payment (year 1)
6,629.46
Checked against: ML 2023-05 (over 15 years, base above 726,200, LTV 90% → 70 bps for 11 years); 2026 ceiling 1,249,125 from ML 2025-23
Questions
How much is FHA mortgage insurance in 2026?
The upfront premium is 1.75% of the base loan, and the annual premium is 0.15% to 0.75% a year (HUD Mortgagee Letter 2023-05). The most common case, a 30-year loan of up to 726,200 with less than 5% down, pays 0.55% a year. On a 386,000 base loan that is 6,755 upfront and 176.02 a month of MIP in the first year at 6.5%.
Can you get rid of MIP on an FHA loan?
For the standard forward-loan scenarios modeled here, initial base loan-to-value of 90% or less gives annual MIP for eleven years, limited by an earlier payoff. Above 90%, it lasts for the mortgage term. These durations come from the selected HUD table; later home-price growth does not change the model's original LTV band. Paying off the existing mortgage, including through refinancing, ends that mortgage's premiums, while the replacement loan needs its own cost comparison.
What is the minimum down payment for an FHA loan?
3.5% of the lower of the price and the appraised value if your credit score is 580 or higher, and 10% if it is between 500 and 579. Borrowers scoring below 500 are not eligible (HUD Handbook 4000.1). On a 400,000 home that is 14,000 or 40,000. The upfront MIP is financed on top and does not count toward these limits.
What are the FHA loan limits for 2026?
For a one-unit home, 541,287 in low-cost counties and up to 1,249,125 in high-cost ones, for case numbers assigned from January 1, 2026 (HUD Mortgagee Letter 2025-23). Two-unit limits run from 693,050 to 1,599,375. The limit caps the base loan; the financed upfront premium may take the total above it. Look up your county on HUD's FHA mortgage limits page.
How is the monthly FHA MIP calculated?
HUD averages the 12 scheduled balances of the loan year, multiplies by the annual rate and rounds to cents, divides by 1 plus the upfront rate when the UFMIP is financed, then divides by 12. HUD's published example, 106,605 at 7.5% with a 0.50% annual and 2.25% upfront rate, gives 43.26 a month in year 1 and 42.85 in year 2.
For planning only. Lenders, tax authorities and markets apply their own rounding, fees and rules; confirm figures with them before you commit.
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