FHA Mortgage Calculator

An FHA mortgage is a home loan insured by the Federal Housing Administration and originated by an approved mortgage lender. FHA financing can offer a lower down payment requirement for eligible borrowers, but loan approval depends on the lender, borrower qualifications, property and applicable FHA rules.

FHA mortgages generally include an upfront mortgage insurance premium and an annual mortgage insurance premium collected through monthly payments. These costs differ from conventional private mortgage insurance and can materially affect both the amount financed and the total monthly housing payment.

Enter the home purchase price, down payment, estimated annual interest rate and either a 15-year or 30-year loan term. Choose whether to finance the upfront FHA mortgage insurance premium or pay it separately at closing.

Add estimated monthly property taxes, homeowners insurance and homeowners association fees, if applicable. The calculator combines these expenses with scheduled principal and interest and the estimated FHA monthly mortgage insurance premium.

Review the initial monthly payment, upfront insurance cost, financed mortgage balance and lifetime payment estimates. The balance chart and amortization schedule show how principal, interest and mortgage insurance change over the loan term.

Principal and interest repay the mortgage balance, including financed upfront mortgage insurance when selected. Annual FHA mortgage insurance is collected as a monthly premium according to the modeled FHA insurance schedule.

Property taxes, homeowners insurance and HOA fees are included using the monthly amounts entered. These expenses can change over time, even when the mortgage interest rate is fixed.

The estimated upfront cash amount shown by the calculator includes the down payment and any upfront FHA insurance premium selected for cash payment. It does not represent complete cash to close: lender fees, other closing costs, prepaid expenses and escrow deposits are excluded.

FHA loans generally require an upfront mortgage insurance premium (UFMIP). This calculator applies a 1.75% upfront premium to the base loan amount, before adding any financed upfront premium to the mortgage balance.

You can model paying the upfront premium in cash or financing it into the mortgage. Financing increases the principal balance and scheduled interest cost. Paying it in cash avoids that additional borrowing but increases the upfront cash requirement. The calculator does not determine whether your actual loan qualifies for a particular financing arrangement.

In addition to upfront mortgage insurance, most FHA purchase loans have an annual mortgage insurance premium (MIP) paid through monthly installments. The annual rate depends on factors including the base loan amount, original loan-to-value ratio and mortgage term.

This calculator models the annual MIP rate tiers established in HUD Mortgagee Letter 2023-05 for the supported loan terms. It calculates monthly premiums from modeled annual average outstanding balances rather than treating MIP as a constant percentage of the original loan balance every month.

The displayed MIP is an estimate based on the implemented schedule. FHA rules, exceptions and lender calculations applicable to a particular loan may differ.

For the modeled FHA loans, an original loan-to-value ratio of 90% or less produces an annual MIP duration of 11 years, or 132 monthly installments. An original loan-to-value ratio above 90% produces annual MIP throughout the scheduled 15-year or 30-year mortgage term.

These durations depend on the original loan terms rather than a later increase in home value. Paying down the mortgage does not automatically make FHA MIP follow the cancellation rules for conventional private mortgage insurance. Loan payoff, refinancing and program-specific exceptions can affect actual insurance obligations.

Some eligible FHA borrowers may qualify for a minimum down payment of 3.5%, while others may need at least 10% depending on credit qualifications and applicable rules. Other lender and FHA requirements also apply.

This calculator accepts a range of down payment amounts for financial modeling. It does not enforce FHA minimum down payments, county loan limits, credit-score rules, debt-to-income requirements or property eligibility. A calculated payment is not confirmation that a proposed FHA loan is available or approvable.

FHA mortgage insurance and conventional private mortgage insurance (PMI) use different pricing and cancellation rules. FHA loans generally include both upfront and annual mortgage insurance, while conventional PMI depends on the conventional loan program, borrower qualifications and other factors.

Compare the full cost of financing, not only the advertised interest rate. Important differences can include the required down payment, upfront charges, monthly insurance, closing costs and the length of time insurance must be paid. Neither FHA nor conventional financing is automatically the less expensive option for every borrower.

The results assume a fixed interest rate, scheduled monthly principal-and-interest payments and no additional principal payments. Monthly property taxes, homeowners insurance and HOA fees remain constant in the modeled schedule, even though real expenses may change.

The calculator does not estimate closing costs, prepaid escrow deposits, lender fees, FHA eligibility or current local FHA loan limits. Lender offers displayed above are not necessarily FHA mortgage offers. Obtain a loan estimate from a qualified lender for transaction-specific costs and eligibility.

For a standard fixed-rate payment comparison, use our 30-year fixed mortgage calculator. To explore a potential homebuying budget, try our mortgage affordability calculator.

These estimates are for education and financial planning. They are not a loan approval or a guarantee of FHA financing, mortgage rates or insurance charges.