What is the mortgage insurance premium on a Loan Estimate?

Updated November 2026 · Every dollar figure is an illustrative example, not a quote

The Mortgage Insurance Premium line in Section F is mortgage insurance paid ahead at closing, a set number of months of a monthly or annual premium. A one-time upfront charge, such as the FHA's 1.75% upfront premium, the VA funding fee, USDA's upfront fee or a single-premium private policy, is a different line: it appears in Section B, Services You Cannot Shop For. Monthly mortgage insurance is on page 1 under Projected Payments.

Where it is on the form

Page 2, Section F, Prepaids, as Mortgage Insurance Premium (__ months), for premiums collected ahead at closing. An upfront FHA premium, VA funding fee, USDA upfront fee or single-premium PMI charged at closing is listed in Section B instead. When an FHA premium or VA fee is financed, the loan amount on page 1 includes it. Monthly mortgage insurance is on page 1 in the Projected Payments table and in Section G if escrowed.

Illustrative rangeFHA upfront premium 1.75% of the base loan; conventional single-premium PMI often 1%–3% of the loan; VA funding fee commonly 1.25%–3.3% of the loan

FHA's upfront premium has been 1.75% of the base loan since April 2012. The VA funding fee depends on down payment and whether it is the first use, and is waived for veterans with a service-connected disability; its schedule has changed over the years, so confirm the current one. USDA charges an upfront fee as well. Conventional single-premium PMI is priced by the insurer on your credit score and down payment. Most buyers with less than 20% down on a conventional loan pay PMI monthly instead and have nothing on this line.

Paid toThe FHA, a private mortgage insurer, or for a VA loan the Department of Veterans Affairs (as a funding fee)

Can you shop for it?No

Can it change at closing?Zero tolerance: It cannot go up at closing

Upfront versus monthly is a break-even question like points. A single premium costs more today and nothing a month; monthly PMI costs nothing today and something every month until it is cancelled. On a conventional loan, monthly PMI can be cancelled once you reach 20% equity and ends by law at 22% on the original schedule, so a buyer who expects to get there in a few years often does better paying monthly. FHA's annual premium lasts the life of the loan on most loans with less than 10% down, which is one reason buyers refinance out of FHA later.

The VA funding fee is not insurance in name but works the same way on the form and is usually financed into the loan. If you have a VA loan and see a 'funding fee' in Section A, that is the lender's own fee under a confusing name; the VA fee belongs in Section B or in the loan amount.

Can you shop for it?

Not for FHA, VA or USDA charges, which are set by the program. For conventional PMI the lender picks the insurer, but the structure is your choice: monthly, single-premium, lender-paid through a higher rate, or avoided altogether with 20% down or a second loan. Ask for the monthly figure and the single-premium figure side by side.

Can it change between the Loan Estimate and closing?

An upfront premium or government funding fee charged at closing is a Section B charge with zero tolerance: it cannot be higher on the Closing Disclosure unless the loan changed (the amount, the down payment, your credit) and a revised Loan Estimate followed. Months of premium prepaid in Section F are estimates with no limit.

Questions to ask the lender

Is this an FHA, VA or USDA charge, or private mortgage insurance, and is it financed into the loan or paid in cash?
What would monthly PMI cost instead of a single premium, and when could it be cancelled?
On a VA loan: am I exempt from the funding fee, and has the exemption been applied?

Red flags

A VA funding fee charged to a veteran with a disability rating who is exempt.
Single-premium PMI chosen for you without a monthly comparison.
Mortgage insurance on a conventional loan with 20% or more down.

Questions people ask

Is the FHA upfront mortgage insurance premium paid at closing?

Usually it is added to the loan amount instead, so you pay it over 30 years with interest. You can pay it in cash at closing if you prefer. Either way it is 1.75% of the base loan amount.

Can I avoid mortgage insurance?

On a conventional loan, yes, with 20% down, or with a smaller first loan plus a second loan, or with lender-paid insurance built into a higher rate. FHA loans always carry it. VA loans have no monthly insurance, only the upfront funding fee, which some veterans are exempt from.

What is the difference between the premium in Section F and mortgage insurance on page 1?

Section F is months of premium collected ahead, if any. A one-time upfront FHA premium, VA funding fee or single-premium PMI is a Section B charge. Page 1's Projected Payments shows the monthly premium that is part of your payment, and Section G shows any months of it collected into escrow at closing.

Only have one quote? That's the problem.

Tell us the rate and the fees you were quoted. It is free, there is no credit pull, and nobody calls you. We check whether another lender beats it, fees included. Or start with the free Loan Estimate checker, which reads your rate, points and Section A and flags anything out of the ordinary.

Check my quote

Every dollar figure on this page is illustrative. Fee ranges are general observations, not a survey or a quote, and are not a loan offer, approval, commitment to lend, or Loan Estimate. Your actual rates and fees depend on qualification with lenders, your state and county, and your closing date. The tolerance rules described are the federal TRID rules in general terms; the rule itself and your own Loan Estimate and Closing Disclosure decide how it applies to your loan. comparemyloan does not negotiate with lenders, lock rates, or take loan applications.