Fha Loan Mortgage Calculator

Content reviewed by David Chen, CFA. Specialized in residential lending and government-backed mortgages.

Use this FHA Loan Mortgage Calculator to estimate your total monthly housing payment, including Principal & Interest (P&I), mandatory FHA Mortgage Insurance Premiums (MIP), property taxes, and home insurance.

FHA Loan Mortgage Calculator

Estimated Total Monthly Payment

$0.00

Detailed Calculation Breakdown

Run the calculation to see the detailed steps.

FHA Loan Mortgage Calculator Formula

The total estimated monthly payment is the sum of four components:

$$ETMP = M_{PI} + M_{MIP} + \frac{Tax}{12} + \frac{Ins}{12}$$

Where $M_{PI}$ (Principal & Interest) is calculated using the standard annuity formula:

$$M_{PI} = P \frac{r(1+r)^n}{(1+r)^n – 1}$$

Variables:

• $ETMP$ = Estimated Total Monthly Payment
• $P$ = Loan Principal Amount ($HP – DP$)
• $r$ = Monthly Interest Rate (Annual Rate $\div 1200$)
• $n$ = Total Number of Payments (Loan Term in Years $\times 12$)
• $M_{MIP}$ = Monthly Mortgage Insurance Premium (Annual MIP Rate $\times P \div 12$)
• $Tax$ = Annual Property Tax
• $Ins$ = Annual Home Insurance

Formula Source: HUD FHA Program Guidelines | CFPB Loan Comparison Tool

Variables Explained

A quick breakdown of the inputs required:

• Home Price: The total agreed-upon purchase price of the home.
• Down Payment (%): The percentage of the home price you pay upfront. FHA minimum is 3.5% for credit scores of 580 or higher.
• Annual Interest Rate: The interest rate charged by the lender for the loan.
• Loan Term (Years): The duration of the loan, typically 30 or 15 years for FHA loans.
• Annual Property Tax: The yearly property taxes assessed by your local government. Lenders usually collect 1/12th of this amount monthly (Escrow).
• Annual Home Insurance: The yearly cost of insuring the property against damage. Lenders usually collect 1/12th of this monthly (Escrow).

What is an FHA Loan Mortgage Calculator?

An FHA loan mortgage calculator is a specialized tool designed to estimate the true monthly cost of an FHA-insured loan. Unlike conventional mortgage calculators, it automatically accounts for the two required components of FHA Mortgage Insurance Premium (MIP): the Upfront MIP (UFMIP) and the Annual MIP (paid monthly).

FHA loans, backed by the Federal Housing Administration, are popular among first-time homebuyers due to their lower down payment requirements (as little as 3.5%) and flexible credit score standards. However, the MIP payments are mandatory and significantly impact the overall monthly expense, which is why a specialized calculator is essential for accurate budgeting.

How to Calculate FHA Loan Mortgage (Example)

Let’s use a step-by-step example with the following values:

1. Determine Loan Principal: Home Price ($300,000) – Down Payment (3.5% of $300,000 = $10,500) = $289,500.
2. Calculate Upfront MIP (UFMIP): UFMIP (1.75% of $289,500) = $5,066.25. This amount is financed, making the true loan amount $294,566.25.
3. Calculate Monthly P&I: Use the loan amount ($294,566.25) and the 30-year, 6.5% rate formula to find the P&I payment.
4. Calculate Monthly MIP: Annual MIP Rate (e.g., 0.55%) $\times$ Loan Principal $\div 12$.
5. Calculate Monthly Escrow: Add 1/12th of Annual Property Tax and 1/12th of Annual Insurance.
6. Sum Totals: P&I + Monthly MIP + Monthly Tax + Monthly Insurance = Estimated Total Monthly Payment.

Related Calculators

Explore other lending tools for your financial planning:

• Conventional Loan Payment Estimator
• HELOC Debt-to-Income Ratio Calculator
• Mortgage Refinance Breakeven Analyzer
• Amortization Schedule Planner

Frequently Asked Questions (FAQ)

1. Does the FHA calculator include PMI?

The FHA uses the term Mortgage Insurance Premium (MIP), not Private Mortgage Insurance (PMI). This calculator includes both the Upfront MIP (UFMIP) and the ongoing Annual MIP (paid monthly), which are mandatory FHA requirements.

2. How long do I have to pay FHA MIP?

For FHA loans with a Loan-to-Value (LTV) greater than 90% at closing (i.e., less than 10% down payment), the monthly MIP must be paid for the life of the loan. If the LTV is 90% or less (i.e., 10% or more down payment), the monthly MIP requirement typically ends after 11 years.

3. What is the minimum down payment for an FHA loan?

The minimum down payment for an FHA loan is 3.5% if the borrower has a credit score of 580 or higher. For credit scores between 500 and 579, the minimum down payment increases to 10%.

4. What is the UFMIP and how is it paid?

UFMIP stands for Upfront Mortgage Insurance Premium. It is a one-time fee, currently 1.75% of the loan amount, which is typically financed into the total loan principal, increasing the borrower’s total debt.