The MIP ranges from 0.45% to 0.95% of your balance for mortgages with terms of 15 years or less. If your down payment was more than 10% of the purchase price, you stop paying MIP after 11 years. If you put down less than 10%, you pay MIP for the entire term of your loan.
For FHA borrowers taking out a loan longer than 15 years, the mortgage insurance premiums will drop from 0.85% to 0.55% with a base loan amount of $726,200 or less. For FHA borrowers taking out a 15-year fixed mortgage with a 10% or greater down payment, the MIP will expire after 11 years, and the cost drops from .
To summarise. A Mortgage in Principle (MIP) is specific to you. Together with your deposit, it will give you an indication of how much you can borrow from a mortgage lender. A MIP is normally valid for up to 90 days.
If your down payment is less than 10%, you're typically required to pay MIP for the life of the loan. If your down payment is 10% or more, MIP ends after 11 years. Using a tool like a Home Affordability Calculator can help you estimate your future loan costs.
If your origination date was between January 2001 and June 3, 2013: Your MIP is typically canceled when you reach a loan-to-value (LTV) ratio of 78 percent. If your origination date was after June 3, 2013 and you made a down payment of at least 10 percent: Your MIP will be canceled after 11 years.
Rising property values mean many homeowners may have enough equity in their home to refinance and reduce or remove their private mortgage insurance (PMI) or mortgage insurance premium (MIP). That could save hundreds of dollars a month. Plus, you may also benefit from a lower rate, shorter term and more.
How long does a MIP last? A Mojo Mortgages MIP is valid for 90 days, which should give you plenty of time to find a property and make an offer. If your Mortgage in Principle expires, don't worry. Presuming your circumstances haven't changed, it shouldn't be a problem for you to get another MIP.
If your payments are current and in good standing, your lender is required to cancel your PMI on the date your loan is scheduled to reach 78% of the original value of your home. If you have an FHA loan, you'll pay MIP for either 11 years or the entire length of the loan, depending on the terms of the loan.
Will Mortgage Rates Ever Go Down to 3% Again? While it's possible that interest rates could return to 3% territory in the future, it's highly unlikely that it'll happen anytime soon. In fact, some experts say it won't happen again without another major economic shock like the one caused by the COVID-19 pandemic.
A Minor in Possession (MIP) violation typically does not impact car insurance premiums, as it's not a driving-related offense. Associated penalties like license suspension may lead to higher insurance costs.
In most jurisdictions, a MIP conviction is a misdemeanor that can potentially stay on your criminal record indefinitely. Note, however, that a minor in possession charge will not result in a criminal record if you can get the charges dismissed.
To avoid private mortgage insurance (PMI), you can make a 20% down payment, use a VA or USDA loan, pay a higher interest rate or get a piggyback loan, among other options. If you don't make a large enough down payment, you might be required to pay for private mortgage insurance (PMI) when you buy a home.
If you get a 30-year FHA loan and put 3.5 percent down, you'll be paying MIP for as long as you have the loan. If you put down at least 10 percent, you'll pay for 11 years.
If you received your FHA loan on or after June 3, 2013:
You can remove MIP after 11 years if your original down payment was at least 10% of the purchase price. If your down payment was less than 10%, you must pay MIP for the life of the loan, unless you refinance.
Financing the upfront MIP fee can be attractive for borrowers who don't have the cash available to pay the fee upfront. However, it's important to understand that this increases the borrower's overall loan amount, which leads to higher monthly payments and more interest paid over the life of the loan.
The ability to cancel — Generally, PMI can be removed from your monthly mortgage payment when you've reached 20% equity in your home or have paid your loan balance low enough. FHA mortgage insurance is more complicated and may involve refinancing.
Mortgage Rates Are Stabilizing
After a few years of rate volatility, mortgage rates have mostly leveled out, hovering in the mid-6% range through most of 2025. While buyers hope rates will drop further, most experts predict only slight changes in early 2026—meaning waiting may not result in significant savings.
To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.
What is the 3-7-3 Rule? Within 3 business days of your completed loan application, your lender must provide initial disclosures. This includes the Loan Estimate (LE), which outlines your estimated loan terms, interest rate, closing costs, and monthly payment breakdown.
Typically, PMI fees range from 0.5 to 1.5% of the original loan amount, per year. So, for example, if you take out a $400,000 mortgage, your PMI costs may range from $2,000 to $6,000 per year (or roughly $167 to $500 per month).
On most FHA loans, you'll pay an annual MIP fee equal to 0.85% of your loan amount. If you borrow $200,000, that comes out to $1,700 a year or about $142 a month. You also pay a one-time upfront MIP. That fee is 1.75% of your loan amount.
Many lenders (like Fannie Mae) also require a two-year “seasoning requirement,” meaning you can't have PMI removed until you've made two years' worth of on-time payments—even if your equity has grown above 20%. If it's been less than five years, you might even be required to have 25% worth of equity.
If your down payment was more than 10% of the purchase price, you stop paying MIP after 11 years. If you put down less than 10%, you pay MIP for the entire term of your loan. If you took out an FHA loan before June 3, 2013, the terms are different.
The rule requires the buyer's solicitor to inform the lender when a seller is attempting to sell the property when the seller was registered at the land registry less than six months prior to the agreed sale. The lender will not usually lend in that case.
FHA closing costs include upfront mortgage insurance premium (MIP), lender fees, third-party fees, and other prepaid expenses. Let's take a closer look at these costs.