How to calculate FHA monthly MI payment

Mortgage and Lending with Fairway Independent Mortgage Corporation Nevin NMLS #69651

calculatorHow we calculate mortgage insurance (MI) on FHA loans to figure out a monthly MI payment


What exactly is PMI or MI?  You can view PMI a simple explanation for more clarification.


What you will need:

A standard calculator

A piece of paper/pen

A little patience

An understanding of MI factor 

An understanding of UFMIP

Here is the formula - 

Loan amount multiplied by to monthly MI factor divided by 12 equals your monthly MI payment.

MI factor is the number used to calculate the sum.  FHA rules change but as of now these are the guidelines.

If you have a down payment less than 5% then your monthly MI factor is 1.15   If you have 5% or greater down payment your monthly MI factor is 1.10

UFMIP is a one time payment to FHA. It stands for Up Front Mortgage Insurance Premium.  Easy way to think of it is similar to buying or leasing a car.  You put a down payment and then have monthly payments. UFMIP is equal to 1% of the loan amount.

Hypothetical scenario:

Purchase price $300,000 - 3.5% down payment ($10,500) = $289,500 loan amount

Apply UFMIP - Loan amount $289,500 X 1% (2,895) = $292,395.  This is your new loan amount. 

Base loan amount - $289,500 X 1.15 = 3,329.25.  Divide by 12 = $277.44

The monthly FHA MI payment in this scenario would be $277.44 per month.

If the down payment is 5% or greater then use 1.10 instead of1.15


Feel free to contact us with any mortgage related questions.


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Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Oh VERY good information! Bookmarking this! I love when I can have a formula handy!

May 15, 2011 04:21 PM #1
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening Nevin

Thanks for the post and information. Have a great day

May 15, 2011 04:25 PM #2
Maya Swamy
Funds Available - Long Beach, CA
Ph.D. Long Beach, CA -

Good simple example illustrating the point.

May 15, 2011 06:56 PM #3
PRG Real Estate - San Jose, CA
VA Home Loan Specialist - SF Bay Area

I was trying to figure this out without the mtg calc since my batteries died. Thanks

Oct 13, 2011 11:20 AM #4
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Nevin Williams

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