Calculate FHA loan payments including upfront and annual mortgage insurance premiums (MIP). Minimum 3.5% down payment required.
A couple putting $10,500 down on a $300,000 house with a 6.75% FHA loan will not owe the $1,910.55 that a bare principal-and-interest formula gives them. Once mortgage insurance, property tax and homeowners insurance are added, the monthly bill comes to $2,443.24. This calculator keeps each of those pieces on its own line and shows the loan balance year by year, so the number you budget against is closer to the one a lender will quote.
Start with the base loan. A $300,000 price minus $10,500 down leaves $289,500. That is 96.5% of the price (the loan-to-value ratio), and the down payment is exactly 3.5%, the FHA minimum that the page enforces.
FHA charges an upfront mortgage insurance premium of 1.75% of the base loan, and this page adds it to the balance instead of asking for cash at closing: $289,500 × 0.0175 = $5,066.25, so the amount you actually borrow is $294,566.25.
The principal-and-interest payment uses the standard amortization formula, M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the total loan, r is the annual rate divided by 12 and n is the number of months. With r = 0.0675 ÷ 12 and n = 360, M comes to $1,910.55.
Annual MIP is charged on the base loan, not the larger financed amount. For any term over 15 years the page uses 0.55% when the LTV is above 95% and 0.50% otherwise, so $289,500 × 0.55% ÷ 12 = $132.69 a month. Terms of 15 years or less use 0.40% above 90% LTV and 0.15% at or below it. Property tax is $300,000 × 1.2% ÷ 12 = $300.00 and insurance is $1,200 ÷ 12 = $100.00.
Add the lines: $1,910.55 + $132.69 + $300.00 + $100.00 = $2,443.24. Each line is rounded to the cent for display, so a hand sum can differ by a penny. Across all 360 payments the interest alone is $393,232.14.
It divides your dollar down payment by the price and refuses anything under 3.5. On a $285,000 home, $9,900 is 3.47% and fails, while $9,975 passes. The 3.5% minimum also assumes a credit score of 580 or higher, and this page never asks for a score.
Sometimes, because it crosses the 95% LTV line. On the $300,000 example, raising the down payment from $10,500 to $15,000 drops the annual MIP rate from 0.55% to 0.50% and shrinks the loan, so the monthly total falls by about $44 for $4,500 of extra cash. Try your own price, since the break points sit at 95% and 90% LTV.
Not automatically. For FHA loans originated since June 2013, MIP lasts the life of the loan if you started above 90% LTV, and 11 years if you started at 90% or below. Refinancing into a conventional loan is the usual way out. This calculator keeps MIP flat for the whole term and calculates it on the original base loan, while HUD recalculates it on the declining balance, so long-term totals run a little high.
The page always finances it. Paying it in cash would lower your real payment by roughly $33 a month on this example, because $5,066.25 would no longer be amortized over 30 years at 6.75%.
Only roughly. Tax is a flat percentage of the purchase price, while a county taxes assessed value, often after exemptions or a reassessment following your sale. Replace both with the figures on your loan estimate before relying on the total.