FHA Mortgage Payment Calculator

Calculating FHA Mortgage Payments

Use this FHA Mortgage Calculator to calculate total FHA payment including mortgage insurance (MIP), taxes and insurance. Our FHA calculator gives you a total payment estimate for your home purchase including escrows. Learn more about FHA mortgages in Michigan.

The Federal Housing Administration has set mortgage insurance factors with Up Front Mortgage Insurance of 1.75% of your base loan amount plus the annual mortgage insurance (paid monthly). The monthly mortgage insurance depends on your loan term and your down payment. The calculator automatically calculates these amounts and includes them in your payment.

When you buy a home you have your down payment as well as closing costs. Closing costs may be 0% to 6% of your loan depending on your qualifications and the costs of taxes, insurance and title fees. These closing costs are in addition to the down payment calculated above.

FHA Loan Options

How FHA Mortgage Insurance Actually Works

FHA loans carry two separate insurance charges, and mixing them up is the most common source of payment surprises. The upfront mortgage insurance premium (UFMIP) is 1.75% of your base loan amount. Almost nobody pays this out of pocket at closing; instead it gets rolled into the loan balance, which is why the calculator above shows it added to your total loan amount rather than subtracted from your cash to close. The second charge is the annual MIP, which despite its name is billed monthly and folded into your payment for the life of most 30-year FHA loans. Unlike conventional PMI, FHA's monthly MIP typically doesn't cancel once you hit 20% equity unless you refinance out of the FHA program entirely. That's the tradeoff for the program's lower credit score and down payment requirements, and it's worth running the numbers both ways before you commit — compare with the conventional calculator or USDA calculator.

What People Search For Before Using This Calculator

How much house can I afford with an FHA loan?

Affordability comes down to your debt-to-income ratio more than the sale price itself. Lenders generally want your total housing payment, plus any other monthly debts, to stay under roughly 43-50% of your gross income depending on the rest of your file. Plug your expected purchase price into the calculator, then compare the total monthly payment against your take-home pay before you start touring homes.

What credit score do I need for 3.5% down?

FHA allows a 3.5% down payment with a credit score of 580 or higher. Scores between 500 and 579 are still eligible but require 10% down. The calculator defaults to 3.5% since that's what most first-time buyers use, but you can drag the down payment slider up to see how a larger payment shrinks your loan amount and upfront MIP.

Does the FHA calculator include closing costs?

No, and this trips up a lot of buyers. The figures above cover your recurring monthly payment: principal, interest, MIP, taxes and insurance. Closing costs are a separate, one-time expense due at your closing table, typically ranging from 2% to 6% of the loan amount depending on your area and the specific costs your lender and title company charge.

Can I remove FHA mortgage insurance later?

On most FHA loans originated with less than 10% down, monthly MIP runs for the life of the loan. The practical way out is refinancing into a conventional mortgage once you've built enough equity, usually 20%, and your credit has improved enough to qualify for competitive conventional rates.

FHA Calculator FAQ

What is the current FHA upfront mortgage insurance premium?

The upfront MIP is 1.75% of your base loan amount. It is financed into the loan rather than paid in cash, so it increases your total loan balance and your principal and interest payment slightly.

Is FHA mortgage insurance the same as PMI?

They serve the same purpose, protecting the lender if you default, but FHA insurance (MIP) is a government program with fixed rates set by HUD, while PMI is private mortgage insurance priced by individual insurers based on your credit and down payment.

Can I use an FHA loan for a second home or investment property?

No. FHA loans are reserved for a primary residence you intend to live in, with limited exceptions such as certain multi-unit properties where you occupy one unit.

Why is my FHA loan amount higher than my purchase price minus down payment?

Because the upfront MIP gets added to your base loan amount after your down payment is subtracted. A $300,000 purchase with 3.5% down leaves a base loan of $289,500, and financing the 1.75% upfront MIP adds roughly $5,066 on top of that.

Does the FHA calculator update if I change the loan term?

Yes. Switching between 30-year and 15-year terms recalculates your principal and interest payment along with the monthly MIP factor, since HUD applies different MIP rates depending on loan length and down payment.

Riverbank Finance LLC is not part of the FHA or Department Of HUD. The information provided by this FHA mortgage calculator is for illustrative purposes only. The default values are hypothetical and may not be applicable to your individual situation. Speak with a licensed loan officer to review rate and terms that may be available for you. The calculated results are intended for illustrative purposes only and accuracy is not guaranteed.