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FHA Loan Calculator
About the FHA Loan Calculator
Estimate a monthly payment on an FHA mortgage including principal, interest, property tax, insurance and FHA mortgage insurance premiums (PITI).
How to use the FHA Loan Calculator
- Enter the Home Price, Down Payment (%), Interest Rate (%) and choose 15 or 30 years.
- Open the taxes and insurance options and enter Annual Prop Tax, Annual Hazard Ins., Upfront MIP Rate and Annual MIP Rate.
- Press Calculate PITI Complete.
Formula and method
Loan amount = price minus down payment (plus the financed upfront MIP). Payment = principal and interest from the loan formula + monthly tax + insurance + monthly MIP.
When to use the FHA Loan Calculator
- Estimating the payment on an FHA-insured mortgage, including mortgage insurance.
- Checking whether a small down payment is affordable.
- Comparing an FHA loan with a conventional loan.
Common mistakes to avoid
- Forgetting the upfront and yearly FHA mortgage insurance premiums.
- Assuming FHA insurance can be dropped later. On many FHA loans it stays for the life of the loan.
Tips
- FHA loans allow low down payments but charge mortgage insurance, often for the life of the loan when the down payment is small.
- MIP rates change, so confirm current rates with your lender.
Frequently Asked Questions
Mortgage Insurance Premium: an upfront fee plus an annual charge that protects the lender on an FHA loan.
Generally 3.5% with a credit score of 580 or above, and 10% for lower scores that still qualify.
They suit first-time buyers and buyers with lower credit scores or smaller savings.