FHA Loan Calculator

About the FHA Loan Calculator

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). They are a popular choice, especially for first-time homebuyers, because they allow for lower down payments and are available to individuals with less-than-perfect credit.

This calculator is specifically designed to estimate the monthly payments for an FHA loan, which have unique costs compared to conventional mortgages.

How it Works

The FHA loan calculation includes two types of mortgage insurance premiums:

• Upfront Mortgage Insurance Premium (UFMIP): This is a one-time fee, typically 1.75% of the base loan amount, which is rolled into your total mortgage balance. This calculator automatically adds this to your loan.
• Annual Mortgage Insurance Premium (MIP): This is an ongoing fee, paid monthly, for the life of the loan (or 11 years, depending on your down payment). The rate varies based on your loan-to-value ratio and loan term.

Key Inputs

• Home Price: The purchase price of the home.
• Down Payment: FHA loans allow for down payments as low as 3.5%.
• Interest Rate: The mortgage rate you've been quoted.
• Loan Term: The length of the loan, typically 15 or 30 years.

The calculator will provide a comprehensive breakdown of your estimated monthly payment, including the Principal & Interest, monthly MIP, and estimated property taxes and homeowners insurance.