FHA vs conventional calculator
Bankrate says FHA loans require both an upfront mortgage insurance premium and annual MIP on all loans, while conventional loans usually require PMI only when the borrower puts less than 20% down. Zillowās PMI vs MIP guide also says PMI applies to conventional loans with less than 20% down, while FHA loans use both upfront and monthly MIP regardless of down payment.
FHA scenario
FHA commonly allows 3.5% down for qualified borrowers, and FHA MIP usually includes a 1.75% upfront premium plus annual MIP paid monthly.
Monthly payment
$0
Upfront MIP
$0
Monthly MIP
$0
Principal & interest
$0
Base loan
$0
Cash down
$0
Conventional scenario
Conventional loans do not charge upfront MIP, but PMI is commonly required below 20% down and can be removed once the borrower reaches enough equity.
Monthly payment
$0
Upfront MI
$0
Monthly PMI
$0
Principal & interest
$0
Base loan
$0
Cash down
$0
Comparison logic
| Rule | FHA | Conventional |
|---|---|---|
| Upfront insurance | 1.75% upfront MIP is typical | No upfront PMI in standard comparison |
| Monthly insurance | MIP paid monthly based on annual rate | PMI usually required below 20% down |
| Removal behavior | MIP is more persistent than PMI in many cases | PMI can be removed after sufficient equity, often around 20% |
| Better monthly payment now | Calculatingā¦ | Calculatingā¦ |