This **FHA Mortgage Payment Calculator** is a crucial tool for estimating the total monthly payment (PITI) on a Federal Housing Administration (FHA) loan. It automatically includes the required Upfront Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP).
FHA Mortgage Payment Calculator
Detailed Calculation Steps
The FHA payment calculation includes Principal & Interest (P&I), Monthly MIP, Property Tax, and Home Insurance (PITI).
FHA Mortgage Payment Formula
The total FHA monthly payment (PITI) is the sum of four components, where the Principal & Interest (P&I) is calculated using the standard amortization formula on the total financed amount (including UFMIP).
1. Financed Loan Amount (P): L = Home Price * (1 - Down Payment %) + (L * 1.75%)
2. Monthly Interest Rate (i): i = Annual Rate / 12 / 100
3. Total Payments (n): n = Loan Term (Years) * 12
4. Monthly P&I Payment (M_PI): M_PI = P * [ i * (1 + i)^n / ((1 + i)^n - 1) ]
5. Monthly MIP (M_MIP): M_MIP = (Loan Amount * 0.85%) / 12
6. Total Monthly Payment (PITI): PITI = M_PI + M_MIP + (Annual Tax / 12) + (Annual Insurance / 12)
Sources: Amortization Formula (Investopedia),
HUD FHA MIP Rules
Variables Used in the Calculator
- Home Price ($): The full cost of the property being purchased.
- Down Payment (%): The percentage of the home price paid upfront (FHA minimum is typically 3.5%).
- Annual Interest Rate (%): The yearly rate charged on the loan.
- Loan Term (Years): The length of the mortgage, typically 15 or 30 years.
- Annual Property Tax ($): The yearly cost of property taxes, often escrowed monthly.
- Annual Home Insurance ($): The yearly premium for homeowner’s insurance, also typically escrowed monthly.
What is an FHA Mortgage?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration (FHA). These loans are popular with first-time homebuyers because they allow for lower minimum down payments (as little as 3.5%) and often have less restrictive credit score requirements compared to conventional loans.
The key differentiator for an FHA loan is the mandatory Mortgage Insurance Premium (MIP). This includes an Upfront MIP (UFMIP) that is 1.75% of the loan amount, which is typically financed into the loan, and an Annual MIP that is paid monthly. Our calculator accounts for both of these costs to give you an accurate PITI (Principal, Interest, Tax, Insurance) estimate.
How to Calculate FHA Mortgage Payment (Example)
- Determine Loan Amount: Assume a $200,000 home price with a 3.5% down payment ($7,000). The base loan is $193,000.
- Add UFMIP: The Upfront MIP is $193,000 * 1.75% = $3,377.50. The total financed loan amount (P) is $196,377.50.
- Calculate P&I: Using a 30-year term and a 6.5% rate on $196,377.50, the Principal and Interest (P&I) payment is found via the amortization formula, resulting in approximately $1,241.76.
- Calculate Monthly MIP: Using the 0.85% annual rate on the base loan ($193,000), the monthly MIP is ($193,000 * 0.0085) / 12, or approximately $136.60.
- Add T&I: If annual taxes and insurance total $4,800, the monthly T&I is $4,800 / 12 = $400.00.
- Total PITI: Summing the components: $1,241.76 (P&I) + $136.60 (MIP) + $400.00 (T&I) = $1,778.36.
Related Calculators
- Conventional Loan Comparison Tool
- Mortgage Refinance Break-Even Calculator
- Amortization Schedule Planner
- Debt-to-Income Ratio Calculator
Frequently Asked Questions (FAQ)
The minimum down payment is typically 3.5% for borrowers with a credit score of 580 or higher. If the score is between 500 and 579, the minimum down payment increases to 10%.
For FHA loans with a starting LTV (Loan-to-Value) ratio greater than 90% (meaning a down payment less than 10%), the MIP is typically required for the entire life of the loan. If the LTV is 90% or less, MIP may be canceled after 11 years.
No, FHA loans require their own form of mortgage insurance called MIP (Mortgage Insurance Premium), which includes both a one-time upfront premium and an annual premium paid monthly. This is distinct from the PMI required on conventional loans.
UFMIP stands for Upfront Mortgage Insurance Premium, which is 1.75% of the loan amount. It is almost always financed (rolled) into the mortgage balance, meaning you do not pay it out-of-pocket at closing, but you pay interest on it over the life of the loan.