How to: Calculate FHA Mortgage Insurance Premiums
(Effective: October 1, 2008 through September 30, 2009)

The following tables are a reference to be used when calculating up-front and monthly mortgage insurance premiums for FHA loans:

Up-Front Mortgage Insurance Premiums (UF MIP):
Loan Type Rate
Purchase - 1.75%
Rate/Term Refinance (full qualifying) - 1.75%
Cash-Out Refinance - 1.75%
Streamline Refinance - 1.75%

Monthly Mortgage Insurance Premiums (MMI):
Loans for over 15 years
LTV - Rate
≤ 95% - .50%
> 95% - .55%
Loans for 15 years of less
LTV - Rate
≤ 90% - None
>90% - .25%


Example Calculation:
For the following example, we will use a $100,000 loan borrowed on a 30-year term used to purchase a home. Our loan to value ratio in this example is 97%:

Up-Front Mortgage Insurance Premium: $100,000 × 1.75% (.0175) = $1,750
This will be the amount that is added to the base FHA mortgage and financed into the loan.

Monthly Mortgage Insurance Premiums: $100,000 × .55% (.0055) = $550
$550 ÷ 12 = $45.83
This will be the amount that the borrower is responsible for paying as a part of the mortgage payment each month.