MIP vs PMI 15-Year vs 30-Year Mortgage Comparison
FHA loans charge MIP for life (or 11 years if 10%+ down). Conventional PMI drops off at 78% LTV. Compare total cost across 15-year and 30-year terms.
| FHA loan amount (+ 1.75% UFMIP rolled in) | — |
| FHA P&I | — |
| FHA monthly MIP (lifetime if DP <10%) | — |
| Conventional loan amount | — |
| Conventional P&I | — |
| Conventional monthly PMI (until 78% LTV) | — |
| FHA total cost over term | — |
| Conventional total cost over term | — |
FHA Mortgage Insurance Premium (MIP) and conventional Private Mortgage Insurance (PMI) both protect lenders against borrower default on low-down-payment loans, but they have very different rules. FHA MIP is required for the life of the loan if your down payment is less than 10%. Conventional PMI automatically terminates at 78% LTV and can be removed earlier by request at 80% LTV. Compare total cost across 15-year vs 30-year terms to find your cheapest option.
FHA MIP: Permanent for Most Borrowers
FHA charges two types of MIP: (1) Upfront MIP (UFMIP): 1.75% of the loan amount, typically rolled into the loan balance. (2) Annual MIP: 0.55% (2025 rate) of the outstanding balance, divided by 12 and added to your monthly payment. If your down payment is less than 10%, MIP stays for the life of the loan. If 10%+ down, MIP terminates after 11 years. The only way to remove FHA MIP for most borrowers is to refinance into a conventional loan — typically when home equity reaches 20%+.
Conventional PMI: Removable at 78% LTV
Conventional PMI is required when your down payment is less than 20%. Premium varies by credit score and LTV — typically 0.5-1.5% annually. PMI automatically terminates when the loan reaches 78% LTV based on the original purchase price (per the Homeowners Protection Act). You can also request removal at 80% LTV by paying for a current appraisal showing sufficient equity. On a typical 30-year conventional with 5% down at 7% rate, PMI drops off at roughly year 10-11. On a 15-year loan, it drops off at year 4-5 because principal pays down faster. This is one of the biggest advantages of 15-year loans for low-down-payment borrowers — much shorter PMI window.
Last updated May 2026. Sources: HUD FHA Guide.