# FHA Mortgage Insurance

FHA mortgage insurance lowered by __.5%__ a year, starting Jan. 26th, 2015.

Calculate your new lower FHA mortgage insurance payment with updated FHA mortgage insurance calculator. Learn more about mortgage insurance reduction below.

**FHA Mortgage Insurance Calculator** – Calculate the up-front FHA mortgage insurance premium (FHA MIP or UFMIP) and the monthly FHA mortgage insurance (FHA MMI). View current FHA loan requirements based on loan amount, loan to value and mortgage amortization terms with this FHA mortgage insurance calculator based on must recent ~~HUD mortgagee letter 2013-04 which updated FHA mortgage insurance on April 1, 2013.~~ Updated HUD mortgagee letter 2015-1 – “Reduction of Federal Housing Administration (FHA) annual Mortgage Insurance Premium (MIP) rates”

**Mortgage Insurance Calculator Instructions**

Step 1: Select Loan Purpose

Step 2: Enter Sales Price and FHA Mortgage Amount

Step 3: Click “Calculate FHA Mortgage Insurance”

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## What is FHA Mortgage Insurance?

The Federal Housing Administration (FHA) was created to help increase homeownership in America by allowing homebuyers to purchase a home with a low FHA downpayment of 3.5% vs. traditional 20% downpayment.

In order to encourage banks and mortgage lenders to provide financing these low downpayment mortgages, FHA provides mortgage insurance to help protect the lenders from the average 3-9% of borrowers who default on mortgages where lenders are forced to foreclose.

**FHA mortgage insurance** are fee’s collected upfront and/or monthly from borrowers which are used to help protect mortgage lenders (and bank depositors money) from serious financial losses due to defaults on these higher risk mortgages with down payments of less than 20%.

If there was no FHA mortgage insurance it is very likely that most home buyers would be required to put a downpayment of 20% or more when buying a home and this would lower homeownership in America and lower home prices.

**Upfront FHA Mortgage Insurance Premium (FHA MIP)**

The Federal Housing Administration charges borrowers an upfront mortgage insurance premium (**FHA MIP**) on FHA mortgages. This upfront mortgage insurance premium is based on a percentage of the FHA loan amount and is dependant on the type of mortgage.

**Purchase FHA loans and FHA refinance mortgages**– the current FHA mortgage insurance premium requirement is 1.75% of the mortgage amount

Calculate your upfront FHA mortgage insurance premium / FHA MIP using the above FHA MIP calculator or use our FHA mortgage payment calculator to calculate your full FHA monthly mortgage payment with principal, interest, taxes and insurance.

**FHA Monthly Mortgage Insurance (FHA MMI)**

Monthly mortgage insurance or MMI is a monthly prorated mortgage insurance which is included in FHA mortgage payments. The mortgage insurance is part of the PITI mortgage payment calculation for FHA loans.

Below are some details of current monthly FHA mortgage insurance.

- All FHA 30 year mortgages and FHA 15 year mortgage regardless of loan to value require FHA monthly mortgage insurance.

Use our FHA mortgage calculator with taxes and insurance to calculate your exact monthly mortgage insurance premium and piti mortgage payment for either FHA 30 year mortgages or FHA 15 year mortgages.

**2015 FHA Mortgage Insurance Premium Chart**

Chart of current mortgage insurance rates for FHA loans updated on Jan 8th for all loans after Jan 29, 2015.