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HUD MIP savings calculator
Shows what your HUD-insured apartment loan pays in mortgage insurance at its old rate compared with the 0.25% premium on loans applied for since October 1, 2025, what a 223(a)(7) refinance to the new rate would cost, and how long the savings take to repay it.
MIP saved in the first year
$61,687$107,160 a year at 0.60% today, against $45,473 at 0.25% on the new loan.
- Monthly P&I and MIP now
- $91,873
- Monthly P&I and MIP after
- $88,260
- Change
- $3,612 less a month
- Break-even: savings exceed the extra balance owed
- 87 months (7.3 years)
- New loan amount
- $18,331,643
- New term
- 372 months
What it costs to get to 0.25%
- HUD application fee (0.15%)
- $27,497
- Upfront MIP (0.25%)
- $45,829
- Lender fees (cap on this loan: $396,633)
- $183,316
- Prepayment premium
- $0
- All costs rolled into the loan
- $331,643
Over the remaining life
- MIP if you keep the loan
- $2,003,340
- MIP on the new loan
- $850,105
- MIP saved
- $1,153,236
- All P&I and MIP left: keep vs refinance
- $32,858,109 vs $32,273,360
Estimate, not a quote. HUD, the lender and the appraisal decide the real numbers; Janover Capital is an advisor, not a lender, and is not affiliated with HUD or FHA.
Reading the results
- MIP saved in the first year
- Your premium rate on this year's average balance, minus 0.25% on the new loan's. The new loan is a little larger because the costs are financed, so the saving is slightly less than the rate gap times your balance.
- Monthly payment change and break-even
- Principal, interest and MIP before and after. Because the costs are financed rather than paid in cash, break-even is the first month in which the payments you have saved add up to more than the extra principal you owe on the new loan compared with the old one. From then on the refinance is ahead.
- Lifetime figures
- MIP summed over every remaining year on the scheduled balance, and all payments left on each loan. If you extend the term, total payments can rise even while the monthly payment falls.
The worked example
An $18,000,000 market-rate 223(f) loan committed in 2019, paying 0.60% MIP at a 3.85% note rate with 372 months left, refinanced through 223(a)(7) at the same rate and term with 1% lender fees, $75,000 of other costs and no prepayment premium. First-year MIP falls from $107,160 to $45,473, a saving of $61,687; the payment drops $3,612 a month and the $331,643 of financed costs is earned back in 87 months (7.3 years). The result is sensitive to costs: the same refinance with 2% lender fees and a 1% prepayment premium does not break even at all, because the MIP saving shrinks as the balance amortizes while the extra principal financed does not.
How the calculator works
HUD set every FHA multifamily program at 0.25% upfront and 0.25% a year for applications submitted or amended on or after October 1, 2025 (90 FR 45789, September 23, 2025). Existing loans keep their rate. The presets follow HUD's earlier notices:
| Program | FY2012 | Oct. 2012 to Mar. 2016 | Apr. 2016 to Sept. 2025 (market / Affordable / Broadly Affordable or Green) | Oct. 2025 on |
|---|---|---|---|---|
| 223(f) | 0.45% | 0.60% | 0.60% / 0.35% / 0.25% | 0.25% |
| 221(d)(4) | 0.45% | 0.65% | 0.65% / 0.35% / 0.25% | 0.25% |
| 223(a)(7) | 0.45% | 0.50% | 0.50% / 0.35% / 0.25% | 0.25% |
| 207, 220, 231 | 0.50% | 0.70% | 0.70% / 0.35% / 0.25% | 0.25% |
| 241(a) | 0.80% | 0.95% | 0.95% / 0.35% / 0.25% | 0.25% |
Sources for the table: 77 FR 49007 (FY2012 and FY2013 rates; FY2014 to FY2016 unchanged), 81 FR 18473 (from April 1, 2016) and 90 FR 45789. Loans with LIHTC committed before April 2016 generally paid 0.45%.
- MIP. Each year's premium is the rate times that year's average scheduled balance; the first-year figure uses the next 12 months. Your servicer's bill may differ slightly in timing.
- New loan. (Balance + prepayment premium + other costs) ÷ (1 − 0.15% − 0.25% − lender fee %), because those three scale with the loan. A 223(a)(7) is the smallest of the original principal, the payoff plus eligible costs, and what 90% of NOI supports (1.11x; 95% for some Section 8 and co-op loans; MAP Guide 3.8.3). The calculator checks the first if you enter it; use the 223(a)(7) estimator to test the NOI limit.
- Term. A 223(a)(7) may extend the term up to 12 years past the current maturity, within the program's maximum and 75% of remaining economic life (12 U.S.C. 1715n(a)(7)).
Sources
- 90 FR 45789, FHA multifamily MIP changes, applications on or after Oct. 1, 2025 (Sept. 23, 2025)
- 81 FR 18473, FHA multifamily MIP changes from April 1, 2016 (Mar. 31, 2016)
- 77 FR 49007, FHA multifamily MIP for FY2013 (Aug. 15, 2012)
- HUD MAP Guide, Handbook 4430.G, 2020 edition (effective Mar. 18, 2021)
- 12 U.S.C. 1715n (National Housing Act sec. 223)
Rules checked against these sources on October 30, 2026. HUD changes program rules by Mortgagee Letter and Federal Register notice; the lender's commitment governs any loan.
Short answers
Did HUD lower MIP on existing multifamily loans?
No. The 0.25% rate applies to applications submitted or amended on or after October 1, 2025 that had not been initially endorsed (90 FR 45789). A loan endorsed earlier keeps the premium it was insured at. The way to reach 0.25% is a new FHA-insured loan, usually a 223(a)(7) refinance.
What does a 223(a)(7) refinance cost?
HUD charges a 0.15% application fee and no inspection fee. The upfront MIP is the first year's 0.25% premium. Lender financing and placement fees are capped at 3.5% of the first $2 million and 2% above that, plus third-party reports, title, legal and any prepayment premium on the old note. All of it can usually be financed, within the original principal amount.
How do I find my current MIP rate?
It is on the servicer's annual MIP billing and in the firm commitment. The presets here follow HUD's published schedules: most market-rate 223(f) loans committed from April 2016 to September 2025 pay 0.60%, 221(d)(4) loans 0.65%, 223(a)(7) loans 0.50%, and loans in HUD's former Affordable category 0.35%.
Want a real number?
Send the deal to the HUD desk at Janover Capital. A senior advisor sizes it against HUD and agency executions and replies, typically within one business day.
Use "Send these numbers to the desk" above and your inputs and results land in the Deal details box.