Upfront Mortgage Insurance Premium UFMIP

A one-time mortgage insurance premium charged on FHA loans. This fee is usually equal to 1.75% of the loan amount and is added to the loan balance. If the borrower should eventually refinance the FHA loan with a conventional loan, this premium is refunded to the borrower on a prorated basis. In addition to this one-time upfront fee, FHA loans also assess a monthly mortgage insurance premium. For more information, see the "Mortgage Insurance" article in the "Mortgage Industry" section.

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What You Need to Know About Real Estate

What You Need to Know About Real Estate

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