Does FHA MIP ever drop off?

For most FHA loans originated after 2013 with less than 10% down, MIP lasts the life of the loan. Refinancing to a conventional loan is the usual exit.

What credit score do I need for FHA?

580+ qualifies for 3.5% down. Below that, a larger down payment is typically required. Lenders can overlay stricter requirements.

Money & Finance · Free tool

FHA Loan Calculator

Estimate monthly payments on an FHA loan with mortgage insurance premium (MIP) factored in. First-time homebuyer friendly.

Updated April 2026

Home price ($)Down payment (%)Rate (%)Term (years)Property tax (% / yr)Insurance ($ / yr)

Monthly payment (PITI)

$2,326

P&I

$1,926

Tax

$300

Insurance

$100

Loan amount: $289,500

What it does

An FHA loan calculator. FHA loans let qualified buyers put as little as 3.5% down, which is the single biggest reason they’re used by first-time homebuyers. The catch is mortgage insurance premium (MIP) — an upfront fee plus an annual premium that stays on the loan for the long term in most cases.

The calculator estimates your PITI payment. Remember to add MIP to your total monthly cost — it’s typically 0.55-0.85% of the loan amount per year. At a $290,000 loan balance, that’s $133-$205/month on top of the PITI this calculator shows.

Example input & output

Input

Home price: $300,000
Down: 3.5% ($10,500)
Rate: 7.0%
Term: 30 years

Output

P&I: $1,927/mo
Taxes: $300/mo
Insurance: $75/mo
PITI subtotal: $2,302/mo
+ Estimated MIP: ~$180/mo
All-in: ~$2,482/mo

MIP adds roughly $2,160/year to the cost. Refinancing to conventional once you hit 20% equity can drop it.

How to use it

Enter the home price.
Enter 3.5% as the minimum FHA down payment.
Enter the current FHA rate (often slightly below conventional).
Include property taxes and insurance.
Add monthly MIP separately based on your loan balance.

When to use this tool

Buyers with limited down payment savings.
Buyers with lower credit scores (FHA is more lenient).

When not to use it

Buyers with 20%+ down — conventional usually beats FHA on total cost.
Investment or second-home purchases (FHA is owner-occupied only).

Common use cases

First-time homebuyer planning.
Comparing FHA vs conventional 3% down programs.
Assessing the all-in cost including MIP.

Frequently asked questions

Does FHA MIP ever drop off?: For most FHA loans originated after 2013 with less than 10% down, MIP lasts the life of the loan. Refinancing to a conventional loan is the usual exit.
What credit score do I need for FHA?: 580+ qualifies for 3.5% down. Below that, a larger down payment is typically required. Lenders can overlay stricter requirements.