If you want to upload and host the video on your site's server, then I would create a field with an Asset field type and restrict the type to Video. Without further details, it's hard to understand why you'd want to handle it within a Rich Text field.
Since you're hosting the video, you don't need an iframe. Just use the HTML5 <video>
tag...
{% for video in entry.FIELDNAME %}
<video width="320" height="240" controls>
<source src="{{ video.getUrl }}" type="video/mp4">
</video>
Your servers will be handling the bandwidth for video delivery though; which is why most people post to YouTube or Vimeo and use the iframe to pass it through. To do that, you'd use the include that Brad mentioned.