FHA Loan Calculator

How the FHA Mortgage Calculator Works

FHA loans are designed to make homeownership more accessible – especially for first-time buyers or borrowers with lower down payments. This calculator estimates your total monthly FHA mortgage payment, including:

• Principal & interest (P&I)
• Property taxes
• Homeowners insurance
• FHA upfront mortgage insurance premium (UFMIP)
• Annual FHA mortgage insurance premium (annual MIP)
• HOA dues (if applicable)
• Any extra principal payments you choose to apply

By entering your loan details, you can see how FHA-specific costs impact your monthly payment and total loan cost. The calculator also shows how long FHA MIP lasts and how much UFMIP adds to your loan balance.

Understanding FHA Mortgage Insurance: UFMIP & Annual MIP

FHA loans include two types of mandatory mortgage insurance:

1. FHA UFMIP (Upfront Mortgage Insurance Premium)

• Standard rate: 1.75% of the base loan amount
• Usually added to the loan balance (“financed UFMIP”)
• Paid once at closing, even if financed

2. Annual FHA MIP (Mortgage Insurance Premium)

• Charged yearly as a percentage of your loan amount
• Paid monthly as part of your mortgage payment
• Typical annual MIP range: 0.50% to 0.55% for most 30-year loans with <10% down
• Applies for 11 years or the full loan term, depending on down payment and loan term

Your calculator already handles FHA rules automatically including MIP duration and correct annual MIP percentages.

How to Calculate an FHA Monthly Mortgage Payment

The calculator estimates FHA mortgage costs using this structure:

1. Base FHA loan amount

Loan amount = Home price − Down payment

2. Add FHA UFMIP (if financed)

Total FHA loan = Base loan + 1.75% UFMIP

3. Calculate monthly P&I

Using the interest rate and loan term:

Monthly P&I = Standard mortgage amortization formula

4. Add monthly MIP

Monthly MIP = (Annual MIP rate × Total FHA loan) ÷ 12

5. Add property tax + insurance + HOA dues

Your total monthly FHA payment includes:

P&I + Monthly MIP + Property tax + Homeowners insurance + HOA + Extra principal (optional)

The calculator displays everything clearly including payment after FHA MIP ends.

FHA Loan Terms Explained

• FHA Loan
A government-backed mortgage designed to help buyers with smaller down payments or lower credit scores.

• UFMIP (Upfront Mortgage Insurance Premium)
A one-time FHA fee equal to 1.75% of your base loan amount.

• Annual MIP
Monthly mortgage insurance required for most FHA loans; lasts 11 years or the full term depending on down payment.

• Base Loan vs Total Loan
Base loan = Before UFMIP
Total loan = After UFMIP is added

• Loan Term
Most FHA buyers choose 30-year fixed-rate loans, but 15-year options are available.

• FHA Minimum Down Payment
3.5% for borrowers who meet FHA credit guidelines.

• Extra Principal Payment
Optional monthly amount applied directly to your principal – reduces interest costs and payoff time.

Is an FHA Loan Right for You?

FHA loans are often ideal for:

• First-time homebuyers
• Borrowers with smaller down payments
• Buyers with lower credit scores
• Anyone who wants flexible underwriting and lower entry barriers

FHA can be less ideal if:

• You have 20% down (Conventional may be cheaper long-term)
• Your credit score is high enough for better Conventional pricing
• You plan to keep the home long-term and want to avoid lifetime MIP

Use the calculator to compare FHA monthly payments vs. Conventional or VA loan payments on your other calculator pages.

Frequently Asked Questions (FAQs)