How to calculate an fha loan payment

For some interested in homebuying, an FHA loan is the only path to homeownership. FHA home loans have many advantages – but FHA loans come at a cost. Use MoneyGeek’s FHA Mortgage Insurance Calculator to learn how much you will be paying to the FHA for the privilege of borrowing a loan under the FHA program.

Lock in your rate today. We recommend the following lenders:

MoneyGeek’s ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.

Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standards.

MoneyGeek’s ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.

Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standards.

Conventional 620
FHA 580
VA 620
USDA 620

MoneyGeek’s ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.

Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standards.

Conventional 620
FHA 580
VA 620
USDA 620

How to Use the MoneyGeek FHA Mortgage Insurance Premium Calculator

All new FHA borrowers pay a premium into an insurance fund that reimburses lenders when a borrower goes into foreclosure. The insurance fund and promise of repayment backed by the U.S. government gives lenders the confidence to lend money to people who might not qualify for a conventional loan. There are two FHA mortgage insurance premiums new borrowers must pay. The first is a one-time, upfront premium. This is call the “Upfront Mortgage Insurance Premium” (UFMIP). The second is the ongoing, annual fee that’s calculated every year. As your loan balance falls, the annual premium is recalculated and decreases.

The calculator above shows you how much your UFMIP will be, and how much you can expect to pay during the first year of your loan. As mentioned, expect your annual amount due to decrease with each passing year.

Input What To Input
Home value Enter the purchase price for your home. Because our calculator estimates your UFMIP and MIP, you can enter a round number here.
Loan Length (Years) Most FHA loans are 30 years in length. However, your loan may vary, so enter the correct loan term here.
Down Payment Enter how much you expect to give the lender as a down payment. The minimum for an FHA loan is 3.5%, and that is the typical amount FHA borrowers spend at closing.
Payments per year Most loans are set up to be paid 12 times per year, due on the first of the month. However, the number of payments per year can vary.
Interest Rate Enter the offered rate, and not the APR rate. APR is meant to show the effective cost of the loan, and does not apply to this calculator.
Output What the Output Means
Upfront Costs The mount you will be expected to pay in upfront insurance costs. In some deals, you can ask the seller to pay for your closing costs, but this varies by market and deal. This can be rolled into your loan balance.
Total Monthly Payment A sum of your principal, interest, and mortgage insurance cost.
Monthly Mortgage Insurance Costs How much of your mortgage payment goes to your mortgage insurance.

How Much Does FHA Mortgage Insurance Cost?

FHA mortgage insurance involves two components: an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP).

The upfront premium is paid when the borrower gets the loan. The borrower doesn’t pay the fee immediately or in cash. Instead, the premium is added to the borrower’s loan amount. The current FHA upfront premium is 1.75 percent of the loan amount.

Here’s an example of how UFMIP is added to the loan:

The down payment percentage is based on the loan amount without the UFMIP, so a minimum 3.5 percent down payment would still be $7,000, not $7,122.50.

FHA’s Current Mortgage Insurance Premium

Down payment
or equity
MIP (percentage of loan amount) Monthly charge on $100,000 loan
Less than $625,500 Less than 5 percent 0.85 $71
Less than $625,500 More than 5 percent 0.80 $67
More than $625,500 Less than 5 percent 1.05 $88
More than $625,500 More than 5 percent 1 $83

FHA’s Annual Mortgage Insurance Premium (MIP)

The annual premium is divided by 12, and that amount is added to the borrower’s monthly mortgage payment. This system means the borrower doesn’t have to pay the full amount all at once every year.

An individual borrower’s MIP can vary from less than $60 to several hundred dollars per month, depending on the borrower’s loan amount, loan term and down payment percentage. The borrower’s credit score doesn’t affect his or her MIP for FHA loans.

The monthly MIP calculation is complicated, so you should consult a mortgage professional for an FHA loan quote based on your situation.

FHA’s Mortgage Insurance Premium Through the Years

The FHA has changed its MIP multiple times in recent years. Each time the FHA raised its MIP, FHA loans became more expensive for borrowers. Each increase also meant some prospective borrowers weren’t able to qualify for or afford the higher monthly mortgage payments due to the MIP.

How to calculate an fha loan payment

In January 2015, the FHA reversed course and cut its MIP to 0.85 percent for new 30-year, fixed-rate loans with less than 5 percent down. The FHA projected that this decrease would save new FHA borrowers $900 per year, or $75 per month, on average. The actual savings for individual borrowers depends on the type of property they own or purchase, their loan term, loan amount and down payment percentage.

Changes in FHA’s MIP apply only to new loans. Borrowers who’ve closed their loans don’t need to worry that their MIP will get more expensive later.

Monthly Principal & Interest $1,054.20
Monthly Extra Payment (from Oct 2013) $0.00
Property Taxes $208.33
Homeowner’s Insurance $58.33
MIP (till Oct 2019) $136.71
HOA Fees $0.00
Total Monthly Payment $1,457.57
Down Payment & One-time Expenses $13,000.00
Principal (includes UFMIP) $196,377.50
Extra Payments $0.00
Interest $183,133.38
Taxes, MIP, Insurance & Fees $145,215.00

Full Disclosure: We get paid commissions for loan applications made through this link.

Wanna print OR share a custom link to your FHA mortgage calculation (with all your numbers pre-filled)?

First time homebuyers, more than any class of homeowners, tend to be cash poor. That’s not a judgement statement — we all start somewhere. However, compared to other loans, FHA is much more forgiving of your liquidity-related woes. Because of FHA’s low down payments and small reserve requirements, along with options to roll up-front mortgage insurance into the loan, many buyers find they can get into an FHA loan and onto the road to homeownership much more quickly than they can with traditional loan products.

Using the FHA Mortgage Calculator

This calculator allows you to compute the monthly/bi-weekly mortgage payment for your FHA mortgage loan, including the Upfront Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP). It also helps you understand the total cost of home ownership over the entire loan term, by taking into account one-time expenses (closing costs, home furnishing etc.) and recurring costs such as property taxes, homeowner’s insurance and HOA fees. Here are some important points that you should be aware of:

  • FHA Loan limits vary nationwide for single-family, two-family, three-family and four-family properties. You should lookup county-level FHA loan limits for your State and enter the home value accordingly.
  • Currently, FHA mandates a minimum 3.5% down payment towards your house. Historically, it has been 3%.
  • FHA requires one-time UFMIP and recurring MIP (similar to Private Mortgage Insurance — PMI — with Conventional Loans) based on loan-to-value (LTV), your credit score, amortization period, refinance or purchase etc. The rules, to calculate the value and duration of MIPs, are complex and have changed over the years. This calculator assumes that the Upfront MIP is rolled into the mortgage. If you are attempting to calculate the mortgage payments for a FHA loan availed earlier, then you may have to override the defaults provided by the calculator.
  • If you are planning to buy a Condo, you can lookup FHA Approved condos that meet FHA requirements.

Are you looking for an FHA loan and want to estimate your payments? Using a Loan Calculator can help you determine your payment amount quickly and easily. Here are some quick tips to help you along the way.

Check Your Eligibility

Before you get too deep into researching your loan, you’ll want to make sure that you’re eligible. They generally require the following qualifications:

  • Minimum 580 credit score
  • 3.5% down payment
  • Consistent employment history
  • The property meets FHA Standards

Even if you don’t meet all of these qualifications, you may still be eligible for your loan. Check with your lender to receive a full qualification check and get pre-approval.

What Size Loan Will You Get?

The loan amount you qualify for varies depending on your income, credit score, down payment, and debt. A higher credit score and down payment will help you get a bigger loan.

Are There Limits to FHA Loan Amounts?

There is a cap to the amount of money the FHA will lend to a home buyer. Current limits for a single-family home are:

  • $331,760 in low-cost areas
  • $765,600 in high-cost areas
  • $1,148,400 in Alaska, Hawaii, Guam, and the Virgin Islands

Are They Only for First-Time Homeowners?

While FHA loans are not given only to first-time homeowners , you can only use it to buy a primary residence that you plan to live in permanently. In other words, you can’t use the loan to buy an investment property or vacation home. However, you can use your loan to purchase a multi-family home and rent out the homes you’re not living in.

What Will Your Interest Rate Be?

FHA interest rates are usually slightly below the market average. However, you will also be paying mortgage insurance equal to 0.85% of your loan amount.

Are There Any Income Limits?

Don’t worry – there aren’t any income limits to qualify for your loan. No matter what your salary is, you may be eligible. So you can rest assured that your income won’t be a factor in determining your ability to qualify for the loan.

Ready to Apply for Your Loan?

We want to help you make your homeownership dreams come true. To speak to someone in person about your loan, find a loan expert to help you iron out the details.

If you’ve done your research and you’re ready to get started buying your new house, apply for a loan with us today!

FHA Mortgage Calculator

FHA Loan Calculator

Using LendingTree’s FHA loan calculat or is an easy and fast way to find out what your monthly mortgage payment to the Federal Housing Administration (FHA) will be. Our FHA loan calculator does the math for you so you can decide if the flexible qualifying guidelines are worth the extra FHA mortgage insurance cost.

How to use our FHA loan calculator

To get started, you’ll need five pieces of information:

  1. ZIP code . FHA loan limits vary based on the county you live in and the type of property you’re buying. The 2021 limit is $356,362 for single-family homes in most parts of the country, but may be as high as $822,375 for single-family homes in high-cost areas.
  2. Home price . If you’re not sure, enter the price of a home you’re interested in.
  3. Down payment . The calculator automatically calculates a 3.5% down payment , based on a 580 minimum credit score.
  4. Estimated credit score range . The FHA allows scores as low as 500, but only with a down payment of at least 10%.
  5. Loan type . Choose between a 30-year fixed rate loan for the lowest payment, or a 15-year fixed rate to pay your loan off faster.

Use the Advanced options on the FHA calculator to pinpoint your actual payment with extra details below:

      • Mortgage rate. If you’ve shopped for FHA interest rates already, enter the best quoted rate.
      • Property taxes. Enter the exact property taxes for the most accurate figures.
      • Homeowners insurance. Get a homeowners insurance estimate here to get a ballpark on your premium.
      • HOA fees . The lender uses monthly homeowners association (HOA) dues to qualify you, but they’re paid separately from your mortgage payment.

What the FHA home loan calculator results mean

Within seconds of filling in the basic and advanced options, the calculator provides details about your monthly payment. Here’s what they mean:

Your monthly payment. This number is your total monthly payment, including principal, interest, taxes, homeowners insurance, mortgage insurance and HOA dues (if applicable).

FHA base loan amount . This figure represents the loan amount after making a 3.5% down payment.

Upfront MIP (1.75%) . The upfront mortgage insurance premium (UFMIP) is one of two types of costs you pay for FHA mortgage insurance that covers the lender if you default on your FHA loan. You’ll typically finance (add) the 1.75% premium into your loan amount.

Total loan amount . Your total loan amount is the base loan amount plus the upfront MIP.

What the monthly payment breakdown results mean

The “Monthly Payment Breakdown” spells out the details of your total PITI (principal, interest, taxes and insurance) payment and includes:

      • Principal and interest .The calculator bases this figure on the loan amount, interest rate and the term of the loan. For a fixed-rate loan, the payment doesn’t change, but each month you pay more principal and less interest until you pay the balance off. This process is known as “ amortization .”
      • Property taxes . FHA loans require the payment of your property taxes in your monthly payment. The lender uses the funds collected to pay property tax bills when they come due through an escrow account .
      • Homeowners insurance . Homeowners insurance protects you against losses from unexpected damage like fire or theft. The lender pays the yearly premium through your escrow account,
      • HOA dues . If your home is in a neighborhood with a homeowners association, you usually pay dues monthly, quarterly or annually. However, you pay them separate from your regular monthly mortgage payment.
      • FHA MIP . The second type of FHA mortgage insurance is the annual mortgage insurance premium (MIP), which ranges from 0.45% to 1.05% of your loan amount depending on the loan term, loan amount and down payment. MIP is charged annually, divided by 12 and added to your monthly payment.

Do you qualify for an FHA mortgage?

Homebuyers with bumpy credit histories and higher debt loads often choose FHA loans for their lenient qualifying guidelines. Below is a snapshot of the minimum FHA mortgage requirements .

Down payment and credit score 580 with a 3.5% down payment. 500-579 with a 10% down payment.
DTI ratio 43% total debt including new mortgage. 50% possible with proof of extra payment reserves/
Employment history Two-year employment history preferred

How much do you qualify for with an FHA loan?

There are three factors that affect the maximum F HA loan you can take out.

  1. FHA loan limits . As mentioned above, the FHA limits the loan size based on your location and property type. For higher loan amounts, consider a conforming conventional loan to borrow up to $548,250 for a single-family home in most parts of the country.
  2. Debt-to-income (DTI) ratio . A measurement of your total debt divided by your gross income, FHA guidelines cap your DTI ratio at 43%. FHA lenders may make exceptions for borrowers with high credit scores and extra cash reserves.
  3. Buying a multi-family home . FHA loan limits are higher for two- to four-unit multifamily homes , plus you can qualify with the rent on the other units. The catch: You have to live in one unit as your primary residence.

How much are FHA closing costs?

You’ll typically pay 2% to 6% of the loan amount in closing costs for an FHA mortgage. A few things you should know about FHA closing costs :

You’ll pay the annual MIP for the life of the loan . The only way to get rid of MIP is to refinance to a conventional loan. However, if you make a 10% down payment when you buy your home, you can get rid of it after 11 years.

You can ask the seller to pay up to 6% toward your costs . More commonly known as a “seller concession,” a seller can pay 6% to cover closing costs, including the FHA UFMIP.

You may be eligible for closing cost assistance . Ask your lender if they offer closing cost and down payment assistance programs.

How to calculate an fha loan payment

Related Articles

  • How Do I Calculate PMI Mortgage Insurance?
  • The Mortgage-to-Value Ratio
  • How do I Refinance a Mortgage With No Closing Costs?
  • How to Choose the Correct Size Table Lamp
  • What Is an Escrow Buydown?

Federal Housing Administration loans can help homebuyers get into a home for little money down, even with credit challenges. The FHA insures mortgages, protecting lenders if borrowers default. This insurance comes at a cost, which you pay at the time of closing and on a monthly basis.

To calculate an FHA loan amount, you’ll need to include a down payment and mortgage insurance in the equation, as these directly impact the amount you ultimately borrow.

Start With the Down Payment

The FHA offers down payments as low as 3.5 percent. A down payment acts as your upfront monetary contribution to a home purchase and is usually applied to the home’s purchase price. In certain cases, a home’s price might not match its market value when the FHA appraisal is completed. If a home’s appraised value is less than the purchase price, then the down payment is a percentage of the appraised value, not the price.

Down Payment and Base Loan Amount

Calculating a down payment for a specific purchase price is straightforward. For example, a 3.5 percent down payment on a Bay Area home purchase of $500,000 is equal to $17,500. Under FHA guidelines, the same home purchase would cost a borrower with poor credit a lot more upfront. For example, borrowers with credit scores between 500 and 579 need a 10 percent down payment, meaning that a $500,000 home would require a $50,000 down payment. The base loan amount is equal to purchase price minus the down payment. At 3.5 percent down, the base loan amount on a $500,000 is $482,500, or $450,000 with 10 percent down. Borrowers can contribute any amount desired as a down payment, as long as it meets the FHA’s minimum down payment guidelines.

Two Kinds of Mortgage Insurance

You can expect to pay two mortgage insurance premiums to the FHA: the Upfront Mortgage Insurance Premium paid only once at closing; and an annual mortgage insurance premium which you pay to your lender in monthly installments. You can pay the upfront premium out of pocket in lump sum at closing, or finance it, meaning you add it to the base loan amount. The FHA alters mortgage insurance rates periodically, so you need the latest rates to get an accurate calculation. The annual mortgage insurance premium varies by loan amount and down payment, with the lowest loan amounts receiving the lowest rates. Also, 15-year loans receive lower mortgage insurance rates than 30-year loans.

Mortgage Insurance Premiums and Total Loan Amount

At the time of publication, the Upfront Mortgage Insurance rate was 1.75 percent for all FHA loans. You can calculate your total loan amount by adding the upfront mortgage insurance rate to the base loan amount. To figure the upfront premium, multiply the rate by base loan amount, as such: $482,500 * .0175 = $8,443.75. Then, $482,500 + $8,443.75 = $490,943.75, which is the total loan amount.

The upfront premium isn’t included in the monthly mortgage insurance calculation. Instead, you multiply the base loan amount by the mortgage insurance rate, and divide by 12. For example, an FHA loan of $482,500 with a 3.5 percent down payment comes with a mortgage insurance rate of 85 basis points, or .85 percent. The calculation for annual premium is as follows: $482,500 * .0085 = $4,101.25. Then, divide this annual premium by 12 to get the monthly installments: $4,101.25/12 = $341.77.

How to calculate an fha loan payment

Related Articles

  • How to Care for an Umbrella Plant Capella
  • How to Grow Dwarf Pak Choi
  • How to Avoid a Jumbo Mortgage
  • Duranta Plant Care
  • How Do I Fertilize a Queen Palm With Rite Green?

The Federal Housing Administration currently insures 4.8 million mortgages, according to its website. The U.S. Congress created the FHA in 1934 when only 40 percent of homes in America were occupied by their owners. The FHA provides people in all economic situations the opportunity to own their own home. The FHA does not lend any money. Instead, it insures mortgage lenders against losses when they underwrite mortgages to FHA guidelines. In addition, borrowers must pay a mortgage insurance premium, or MIP, both at the close of the loan and each month with their mortgage payment.

Determine the maximum loan amount for the county where the home you wish to finance is located. The FHA’s website has a database that sorts each county in each state and can provide you with the maximum loan amount for your county. While the purchase price can exceed the maximum loan amount, if the purchase price is a lot higher, a down payment exceeding the minimum 3.5 percent may be required to qualify for an FHA loan.

Subtract the down payment of at least 3.5 percent from the purchase price of the home. Multiply the balance by 2.25 percent. If the purchase price of the home is $200,000, the minimum down payment would be $7,000, leaving a balance of $193,000; 2.25 percent of 193,000 is $4,342.50. The $4342.50 is the Up-Front Mortgage Insurance Premium, or UFMIP. Borrowers can pay this at the close of the loan, or finance it into the loan.

Add the UFMIP to the loan amount if it is financed. In the example, $193,000 plus $4,342.50 equals $197,342.50. The monthly insurance premium, or MIP, is 0.50 percent of the loan amount. Multiply the loan amount by 0.50 percent, and divide the sum by 12. $197,342.50 multiplied by 0.005 is $986.71; $986.71 divided by 12 equals $82.23. The actual number is 82.226, but the FHA requires rounding to the nearest cent. Add this amount to the monthly principal, interest, taxes and hazard insurance payment to determine the total monthly mortgage payment.

See what your monthly payment could be with this government-backed loan.

Mortgage Guides

  • Best of 2021
  • Today’s mortgage rates
  • Mortgage refinancing
  • First-time homebuyer
  • Closing costs
  • Understanding mortgage interest

How To:

  • Get preapproved
  • Know when it’s time to refinance
  • Apply for a mortgage
  • Buy a second home

Loan Types

  • Conventional
  • Jumbo
  • Refinance
  • Home equity
    • Best lenders
    • Calculate your home equity
    • Best rates
  • FHA
  • VA
  • USDA
  • Reverse

We Compare The Following Lenders And Brokers

  • Axos Bank
  • BBVA
  • Better
  • Credible
  • Figure
  • Freedom
  • Keller Mortgage
  • LoanDepot
  • Navy Federal Credit Union
  • Quicken Loans
  • Regions Bank
  • Rocket Mortgage
  • SoFi
  • US Bank
  • USAA Bank
  • Veterans United
  • List of all lenders

Term Length

  • 10 years
  • 15 years
  • 20 years
  • 25 years
  • 30 years

Sign up & start saving!

Get our weekly newsletter for the latest in money news, credit card offers + more ways to save

The Federal Housing Administration helps make mortgages more affordable and accessible for approved homeowners. Criteria is lenient, requiring 3.5% of the purchase price down and a credit score as low as 580 for approval. Use our interactive calculator to learn what your monthly payments could be — including a payment breakdown.

How to use the FHA mortgage calculator

Enter your property’s location and home price to get an idea of what your monthly FHA mortgage payment might be:

  1. Enter the ZIP code of the property location to help determine the maximum loan amount you might qualify for.
  2. Enter the property’s home price. You’ll see the Down Payment field change to reflect your property location and price.
  3. Select your estimated credit score range from the drop-down.
  4. Select the loan type you’re interested in from the drop-down — either 30-year fixed or 15-year fixed.

Advanced options

More information about your property can make for a more accurate estimated monthly payment:

5. Enter the mortgage rate you expect to qualify for.
6. Enter estimated property taxes either as an amount or percentage of your home’s value. Entering one field will update the other.
7. Enter your estimated yearly home insurance costs and any monthly HOA fees.

Review your estimated monthly payment based on the information you’ve supplied, along with the total loan amount. The pie chart breaks down your monthly payments visually by principal and interest, mortgage insurance, property tax, homeowners insurance and HOA payments.

FHA mortgage calculator terms

Down payment

This is the amount of money you’ll pay up front when you close on your mortgage.

FHA loans require a minimum of 3.5% down, which is significantly less than the up to 20% down payment you might see with a traditional mortgage.

Maximum loan amount

This is the maximum amount of money that you can borrow with your mortgage through the FHA. Your maximum loan amount depends on your property’s ZIP code.

Maximum loan amounts through the FHA range from $331,760 in low-cost areas and $765,600 in more expensive areas.

Credit score

Your credit score determines the mortgage amount and interest rate you ultimately qualify for through the FHA. FHA loans rely on FICO scores and generally require a fair minimum credit score of 580, though a score as low as 500 might see approval with a higher down payment and mortgage rate.

FICO credit scores range from 300 to 850:

  • Excellent: 740 or higher
  • Good: 670–739
  • Fair: 580–669
  • Poor: Up to 579

Loan type

The loan type for this calculator is the repayment term of the loan. FHA loans offer terms of 15 or 30 years. The 15-year term comes with higher monthly payments, but you’ll save more in interest over the life of the loan.

Upfront MIP

This is the mortgage insurance premium added to your total home loan at closing. Different from private mortgage insurance (PMI), which insures your mortgage lender against a default on your own loan, the FHA mortgage insurance premium goes into a pool of money that’s used to insure other borrowers through the program.

The upfront MIP is typically 1.75% of your loan amount.

Property taxes

This is the tax due to the state, county or local area in which your property is located. It’s based on the assessed value of your property and due annually, adjusting as your property value and inflation rates increase.

Taxes are paid annually as part of your mortgage or directly to the government, depending on your mortgage.

HOA dues

Homeowners association (HOA) dues may be required if your home is in a planned development. HOAs are typically nonprofit organizations that collect dues to share maintenance and improvement costs for community amenities like landscaping, clubhouses or trash disposal.

You pay these fees separately from your mortgage. But because they’re often due monthly, you’ll want to factor them in to determine your monthly costs of homeownership if they apply to your property.

Homeowner’s insurance

This type of insurance policy protects your home and belongings from fire, water and other damage. Mortgage lenders require homeowners insurance, most often rolling your policy cost into your mortgage payments and submitting payment to your insurance company on your behalf.

How to calculate a monthly payment for an FHA loan

Figure out what your monthly mortgage might look like without a calculator:

  1. Find your base loan amount by subtracting your down payment from the price of your home or property.
  2. Multiply the base loan amount by the interest rate. FHA loans start at 3.5%.
  3. Find your upfront MIP by dividing the loan amount by 1.75%, the FHA’s rate as of August 2020. Add this total to your final loan amount.
  4. Divide the final total by the loan term of 15 or 30 years.
  5. Divide the annual total by 12 for an estimated monthly payment before other fees and taxes.
  6. Add your annual property taxes, homeowners insurance and other fees.

How to use this FHA mortgage calculator:

  • Price of Home – Enter the price of the home you want to buy. If you do not have a home in mind yet, just add in a number in the range you expect to want to buy a home for.
  • Mortgage – The second field titled “mortgage”, is by default on a 30 year fixed loan schedule. This is the most common loan repayment schedule selected for FHA loans. You can change it to 20 years, 15 years, or 10 years if you want a shorter loan amortization.
  • Interest Rate – This calculator is by default set at a 4% interest rate. You may adjust this amount.
  • Down Payment – FHA loans require a 3.5% down payment. If you would like to put more down, you may adjust the amount of the down payment.
  • State – Select the state that you wish to purchase a property in. This will update the estimated amount of property taxes,
  • Property Taxes – After you select your state, this will update the amount of estimated property taxes you will be require to pay.
  • Annual Insurance – The amount that the annual homeowners insurance will cost depends on the property you intend to buy, your homeowners insurance claim history (if you have owned a home before, and had to make a claim), and the specific homeowners insurance company that you select to insure your home.

After submitting information into these fields, it will calculate how much the estimated FHA mortgage payment will be.

  • FHA Base Loan Amount -This is your loan amount after subtracting your down payment from the purchase price, but prior to adding in the FHA upfront mortgage insurance premium (UPMIP).
  • FHA Upfront MIP – All FHA loans require a 1.75% upfront mortgage insurance premium to be paid. This is calculated from the base loan amount.
  • FHA Total Loan Amount – This is the combined total of your FHA base loan amount (after subtracting the down payment), along with the FHA UPMIP. You have the option to pay the FHA UPMIP amount out of pocket, or you can include it in the loan amount. Most borrowers decide to include it in the loan amount, so we have it automatically added on the calculator.
  • Principle and Interest – This is the amount of your mortgage payment before adding mortgage insurance, property taxes, and property insurance.
  • FHA MIP – This is the monthly mortgage insurance premiums required on all FHA loans. The amount depends on the type of loan, how many years the repayment schedule is (such as 15 years or 30 years), and the loan-to-value (LTV) ratio. A 15 year loan with a LTV less than 90%, the monthly MIP will be 0.45%. A 15 year loan with a LTV greater than 90%, the monthly MIP will be 0.70%. For a 30 year loan with a LTV less than 95% the monthly MIP is 0.80%. For a 30 year loan with a LTV greater than 95%, the monthly MIP is 0.85%.
  • Monthly property taxes – This is the estimated amount of property taxes that you will need to pay monthly.
  • Monthly insurance – This is the estimated amount of homeowners insurance that you will need to pay monthly.

Home Loan Programs Available In:

Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Kansas, Kentucky, Louisiana, Idaho, Iowa, Illinois, Indiana, Maine, Massachusetts, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.