The current calculation for up front mortgage insurance (UFMIP) is 1% of the loan amount. It is financed within the loan.

Ex: A $100,000 loan (base loan amount) will have UFMIP of $1,000. The new loan amount will be $101,000.

The monthly mortgage is currently 1.15% of the base loan amount. The calculation is as follows:

Base Loan Amount: $100,000 x 1.15% = $1,150/12 = $95.83.

The monthly mortgage insurance does expire. It will last for at least 5 years or 22% equity, whichever comes last.

*Calculations are based upon a 30 year amortization and loan to values >95%. Mortgage insurance will be lower on shorter terms and lower loan to values.