Mortgage & Home · Glossary
MIP (FHA mortgage insurance premium)
Also called: FHA mortgage insurance, UFMIP
Mortgage insurance on FHA loans: an upfront premium usually added to the loan, plus an annual premium paid monthly, often for the life of the loan.
Unlike private mortgage insurance, FHA mortgage insurance is set by HUD, and the premium doesn't depend on your credit score. The annual rate depends on your loan amount, term, and down payment.
With less than 10% down, annual MIP generally lasts for the life of the loan; with 10% or more down, it ends after 11 years. Many borrowers refinance into a conventional loan once they reach 20% equity to drop it.
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Disclaimer: Definitions are general education, not financial, tax, or legal advice. Figures are for the 2026 tax year unless noted.