When it comes to buying a home, understanding the financial implications of your mortgage choice is crucial. For many, an FHA loan presents a viable route, especially due to its lenient credit score and down payment requirements. However, it's essential to factor in the additional cost of Mortgage Insurance Premiums (MIP), which are required for FHA loans. My Perfect Mortgage provides a detailed mortgage reverse calculator to help you accurately estimate these costs. In this guide, we will explain how our calculator works and how you can use it to plan your home financing more effectively.

What is FHA Mortgage Insurance?

FHA mortgage insurance is designed to protect lenders from losses in the event that the borrower defaults on their mortgage. This insurance is required for all FHA loans, regardless of the down payment amount or loan term. It includes both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP) that is usually divided into monthly payments.

Why Use the My Perfect Mortgage FHA Calculator?

Our FHA Mortgage Insurance Calculator is an essential tool for any potential homeowner considering an FHA loan. Here’s why:

  1. Accuracy: Our calculator uses the latest FHA guidelines and premium rates to ensure that the calculations are precise and reliable.
  2. User-friendly: With a straightforward interface, our calculator is designed for ease of use, regardless of your financial expertise.
  3. Comprehensive Breakdown: It provides a detailed breakdown of both the upfront and ongoing costs associated with FHA mortgage insurance.
  4. Customizable Scenarios: You can adjust the home price, down payment, and loan terms to see how different scenarios affect your insurance costs.

How to Use the Calculator

Using the My Perfect Mortgage FHA Mortgage Insurance Calculator is straightforward. Follow these steps:

  1. Enter the Loan Details: Input the total loan amount, which is the home price minus your down payment.
  2. Specify the Loan Term: Choose the length of the loan term. FHA loans are typically available in 15-year and 30-year terms.
  3. Include the Interest Rate: Input the expected interest rate. If you’re unsure, you can use the average FHA loan rate as a placeholder.
  4. Calculate Upfront MIP: The calculator will automatically compute the upfront MIP, which is typically 1.75% of the loan amount, and can be financed as part of the loan.
  5. Determine Annual MIP: Depending on your loan amount, loan-to-value ratio, and loan term, the calculator will compute the annual MIP, which will be divided into monthly premiums.

Real-Life Example

Let’s consider a $200,000 home with a 3.5% down payment ($7,000), resulting in a loan amount of $193,000. At an interest rate of 3.5% and a 30-year term, here's how the My Perfect Mortgage FHA Mortgage Insurance Calculator would break it down:

  • Upfront MIP: $3,377.50 (financed into the loan)
  • Annual MIP: Approximately $1,348 (or about $112.33 per month)


The FHA Mortgage Insurance Calculator from My Perfect Mortgage is a valuable tool for any homebuyer using cash out refinance fha loan. It helps demystify the costs associated with FHA mortgage insurance and aids in financial planning, ensuring that you are fully informed about the monthly and upfront costs of your mortgage. By providing a user-friendly, accurate, and comprehensive tool, My Perfect Mortgage empowers homebuyers to make better home loan comparison calculator decisions on their journey to homeownership.