How the FHA Mortgage Calculator Works
An FHA loan is designed to make homeownership more accessible especially for first-time buyers or borrowers with lower credit scores. This calculator estimates your monthly FHA mortgage payment, including:
- Principal & interest (P&I)
- Property taxes
- Homeowners insurance
- FHA mortgage insurance premiums (UFMIP + Annual MIP)
- HOA dues (if applicable)
- Any extra principal payments you choose to add
By entering your loan details, you can see how FHA-specific costs impact your monthly payment and total loan cost. The calculator also breaks down how FHA mortgage insurance works and how much UFMIP and annual MIP you’ll pay to the lender.
Understanding FHA Mortgage Insurance: UFMIP & Annual MIP
FHA loans require two kinds of mortgage insurance, regardless of your down payment.
1. FHA UFMIP (Upfront Mortgage Insurance Premium)
- Standard rate is 1.75% of the base loan amount.
- It can be financed into the loan or paid upfront.
- UFMIP protects the lender, not the borrower.
Formula:
Total FHA loan = Base loan + 1.75% UFMIP (if financed)
2. Annual FHA MIP (Annual Mortgage Insurance Premium)
Paid monthly as part of your mortgage payment.
- Charged as a percentage of your loan amount
- Rate depends on:
- Loan amount
- Loan term (15 vs. 30 years)
- Down payment amount (<5%, 5–10%, or >10%)
Typical MIP ranges: 0.45% – 1.05% annually
Annual MIP lasts:
- 11 years if down payment ≥10%
- Full loan term if down payment <10%
How to Calculate an FHA Monthly Mortgage Payment
How to Calculate an FHA Monthly Mortgage Payment.
1. Determine Base FHA Loan Amount
Base FHA loan = Home price – Down payment
2. Add FHA UFMIP
If UFMIP is financed:
Total FHA loan = Base loan × 1.0175
3. Calculate Monthly Principal & Interest (P&I)
Uses the standard amortization formula.
4. Add Monthly FHA MIP
Monthly MIP = (Annual MIP rate × Total FHA loan) / 12
5. Add Taxes, Insurance & HOA
Your total estimated mortgage payment is:
Monthly P&I + Monthly MIP + Property tax + Homeowners insurance + HOA + Extra principal (optional)
The calculator shows each component clearly so you understand exactly where your housing payment comes from.
FHA Loan Terms Explained
FHA Loan
A government-backed mortgage that helps buyers qualify with smaller down payments and more flexible credit requirements.
UFMIP
A one-time upfront fee equal to 1.75% of the base loan amount.
Annual MIP
An ongoing mortgage insurance fee applied monthly.
FHA Loan Term Options
Most FHA loans follow a 30-year structure, but 15-year FHA loans are also available.
FHA Minimum Down Payment
- 3.5% down if credit score ≥580
- 10% down if credit score is 500–579
Extra Principal Payments
Optional payments that reduce total interest and shorten your payoff time.
Is an FHA Loan Right for You?
FHA loans are often best for:
- First-time homebuyers
- Borrowers with lower credit scores
- Buyers making smaller down payments
- Anyone wanting competitive rates with flexible underwriting
You may benefit from an FHA loan if:
- You don’t meet conventional loan requirements
- You want to minimize upfront savings
- You need more flexible debt-to-income (DTI) allowances
- You prefer lower interest rates despite modest credit
Use the calculator to compare FHA monthly payments vs. conventional loans. You can also try the VA Loan Calculator or Mortgage Calculator to explore other paths.
Frequently Asked Questions (FAQs)
What is the minimum down payment for an FHA loan?
Most buyers need 3.5% down if they have a credit score of 580 or higher. Lower scores require a 10% down payment.
Does FHA mortgage insurance ever go away?
With 10% down, MIP lasts 11 years. With less than 10% down, MIP lasts for the life of the loan.
Can I refinance out of FHA mortgage insurance?
Yes. Many borrowers refinance into a conventional loan once they reach 20% equity, eliminating MIP entirely.
Does FHA allow seller credits?
Yes – sellers can contribute up to 6% of the purchase price toward closing costs.
Is FHA UFMIP refundable?
Partially. If you refinance into another FHA loan within 3 years, part of your UFMIP may be refunded.
Are FHA loans only for first-time buyers?
No. FHA loans are open to all qualified borrowers, regardless of past homeownership.