Reviewed and fact-checked by David Chen, CFA. This calculator utilizes current FHA guidelines for UFMIP and standard P&I calculation formulas to provide accurate estimates.
Use our quick and easy FHA Mortgage Payment Calculator to estimate your total monthly housing expense, including principal, interest, mortgage insurance (MIP), taxes, and hazard insurance (PITI + MIP).
FHA Mortgage Payment Calculator
Estimated Monthly FHA Payment (PITI + MIP)
Detailed Monthly Payment Components
- 1. Down Payment:
- 2. Base Loan Amount (Purchase Price – DP):
- 3. UFMIP (1.75% Financed):
- 4. Total Financed Loan:
- 5. Monthly P&I Payment:
- 6. Monthly MIP Payment:
- 7. Monthly Property Tax:
- 8. Monthly Home Insurance:
- TOTAL MONTHLY PAYMENT:
FHA Mortgage Payment Calculator Formula:
The total monthly FHA payment is the sum of four main components (PITI + MIP):
PITI + MIP = (P&I) + (Tax/12) + (Insurance/12) + (Monthly MIP)
Where P&I is calculated using the standard amortizing loan formula:
M = P * [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
M = Monthly P&I Payment
P = Total Financed Loan Amount (Base Loan + UFMIP)
i = Monthly Interest Rate (Annual Rate / 1200)
n = Total Number of Payments (Loan Term in Years * 12)
Formula Sources: HUD Handbook 4000.1 (HUD Official Site) and Amortization Calculation (Investopedia Financial Formulas).
Variables:
- Purchase Price: The total agreed-upon cost of the home.
- Down Payment (%): The percentage of the purchase price paid upfront. FHA minimum is 3.5%.
- Annual Interest Rate (%): The annual rate charged on the loan principal.
- Loan Term (Years): The duration of the loan, typically 15 or 30 years.
- Annual Property Tax ($): The estimated yearly cost of property taxes.
- Annual Home Insurance ($): The estimated yearly cost of homeowner’s hazard insurance.
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What is FHA Mortgage Payment Calculator?
An FHA Mortgage Payment Calculator is a tool specifically designed to estimate the total monthly housing payment for a loan backed by the Federal Housing Administration (FHA). Unlike conventional loan calculators, the FHA calculator must account for two mandatory types of Mortgage Insurance Premium (MIP): the Upfront MIP (UFMIP), which is typically financed into the loan, and the Monthly MIP, which is an ongoing monthly expense.
The final payment calculated is often referred to as PITI + MIP, representing Principal, Interest, Taxes, Insurance, and Monthly Mortgage Insurance Premium. This comprehensive estimate is vital for buyers using FHA financing to accurately budget for their homeownership costs, as the MIP adds a significant amount to the total monthly burden.
How to Calculate FHA Monthly Payment (Example):
- Determine the Base Loan Amount: Subtract the down payment amount from the Purchase Price. (e.g., $300,000 – $10,500 DP = $289,500).
- Calculate UFMIP and Total Financed Loan: Add the Upfront MIP (1.75% of the Base Loan Amount) to the Base Loan Amount. ($289,500 + $5,066.25 UFMIP = $294,566.25).
- Calculate Monthly P&I: Use the amortization formula on the Total Financed Loan Amount ($294,566.25) at the agreed-upon interest rate and term (e.g., 6.5% for 30 years).
- Calculate Monthly MIP: Multiply the Base Loan Amount by the Annual MIP rate (e.g., 0.55% for 30-year, minimum DP) and divide by 12. ($289,500 * 0.0055 / 12 = $132.79).
- Add Monthly Escrow Items: Divide the Annual Property Tax and Annual Home Insurance by 12.
- Sum Components: Add Monthly P&I + Monthly MIP + Monthly Tax + Monthly Insurance to get the final estimated total payment.
Frequently Asked Questions (FAQ):
Is the FHA Mortgage Insurance Premium (MIP) permanent?
For FHA loans with a minimum down payment (less than 10%), the monthly MIP is typically required for the life of the loan. If you put 10% or more down, the MIP is canceled after 11 years.
What is UFMIP?
UFMIP stands for Upfront Mortgage Insurance Premium. It is a one-time fee currently set at 1.75% of the base loan amount. FHA rules allow this fee to be financed (added) to the principal balance.
Can I waive the Monthly MIP?
No. The Monthly MIP is mandatory for all FHA loans. If you wish to eliminate monthly mortgage insurance, you would need to refinance into a conventional loan once your Loan-to-Value (LTV) ratio reaches 80%.
Does this calculation include utilities or HOA fees?
No. This calculator estimates the lender-required monthly payment (PITI + MIP). It does not include optional or variable costs like utilities, maintenance, or Homeowners Association (HOA) fees.