FHA Comparison Tool

A loan with Essent mortgage insurance (MI) offers two distinct advantages that can add up to significant savings over time:

  • Lower Premiums.  Lower monthly payments can amount to meaningful long-term savings.
  • Cancellability. Optional cancellation at 80% LTV and automatic cancellation at 78% LTV can count toward even greater savings. (MI for FHA loans >90% LTV cannot be canceled.) Learn more.

Loans and Mortgage Insurance Details

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MI Premium Calculations

Essent MI
FHA
MI Coverage
12%
N/A
Single Upfront Premium Rate
-
1.75%
Monthly Premium Rate 1
0.23%
0.80%

Monthly Results with Financed FHA Premium

Essent MI
FHA
Base Loan Amount
$212,500
$212,500
Total Loan Amount 3
$212,500
$216,219
Monthly P & I
$1,030
$1,032
Monthly MI Premium
$41
$142
Payment (Principal + Interest + MI Premium)
$1,071
$1,174
Essent Monthly Payment Advantage versus FHA
Savings with Essent over 5 Years2

Monthly Results with FHA Premium Paid Upfront

Essent MI
FHA
Loan Amount
$212,500
$212,500
Upfront Premium
$0
$3,719
Monthly P & I
$1,030
$1,015
Monthly MI Premium
$41
$142
Payment (Principal + Interest + MI Premium)
$1,071
$1,156
Essent Monthly Payment Advantage versus FHA
Savings with Essent over 5 Years2

1 Premium rate assumes 30-Year Fixed Rate, Primary Residence, Loan Amount ≤ $417,000, Non-Refundable, and Level Renewals.

2 5-Year savings is a combination of no upfront MI with Essent, lower monthly payments and the equity difference at year 5. In addition, the 5-Year savings assumes 0% return on borrower savings; actual advantage may be greater.

3 Total Loan Amount assumes financing of FHA’s upfront premium into the mortgage balance.

For our complete guidelines and rates, please visit www.essent.us.

This calculator is not an underwriting tool. It is a loan scenario comparison tool, programmed with only a few key eligibility rules, provided for use by mortgage professionals only. Although Essent believes that the calculations it performs will be accurate, the results are not warranted and should not be relied upon for borrower qualification, MI eligibility, GSE acceptance or future home value. Some LTV and credit score scenarios may be unavailable in certain markets. Essent premium rates are effective April 4, 2016, subject to state and regulatory approval and may change in the future. FHA premium rates are effective January 26, 2015. Please visit www.fha.gov for the latest available FHA information.