PMI vs MIP calculator
Zillow says PMI applies to conventional loans when the down payment is less than 20%, while MIP is required on all FHA loans and includes both an upfront premium and a monthly premium. HARās mortgage insurance example shows FHA using a 1.75% upfront MIP and an annual MIP such as 0.85%, while a conventional PMI example uses a monthly PMI based on an annual rate such as 0.5%.
Conventional PMI
Conventional PMI is commonly charged when the borrower puts less than 20% down, and some guides place typical PMI costs in the rough 0.22% to 2.5% annual range depending on credit and loan factors.
FHA MIP
FHA MIP includes an upfront premium of 1.75% of the loan amount, and Zillow says monthly MIP is typically around 0.55% depending on loan factors. Rocket Mortgage also gives an example where a 30-year FHA loan with 3.5% down uses a 0.55% annual MIP rate.
Insurance comparison
| Feature | PMI | MIP |
|---|---|---|
| Loan type | Conventional | FHA |
| When required | Less than 20% down | All FHA loans |
| Upfront cost | Usually none in this comparison | 1.75% upfront MIP |
| Monthly cost | Calculatingā¦ | Calculatingā¦ |