FHA Loan Calculator
Calculate your FHA loan monthly payment including upfront mortgage insurance premium (UFMIP) and annual MIP — built for first-time homebuyers using FHA financing.
Loan Details
Roll upfront MIP into total loan
Taxes & Insurance
How to Use
- 1Enter your home price and down payment percentage — FHA requires a minimum of 3.5% down for credit scores of 580 and above.
- 2Select your loan term (30 or 15 years) and choose whether to finance the 1.75% upfront MIP into your loan or pay it at closing.
- 3Enter your property tax, insurance, and HOA fees to calculate your full monthly payment including all components.
- 4Click Calculate to see your FHA vs conventional comparison, total MIP cost, and full amortization schedule.
Example Calculation
Inputs
Home Price: $300,000 | Down Payment: 3.5% ($10,500) | Interest Rate: 6.75% | Loan Term: 30 years | Finance UFMIP: Yes | Tax: $3,600/yr | Insurance: $1,200/yr | HOA: $0
Verified Results
FHA vs Conventional (same rate, 3.5% down)
"With only 3.5% down, the conventional loan has a lower monthly payment initially, but requires good credit to qualify. FHA loans are more accessible with credit scores as low as 580."
Frequently Asked Questions
Q1: What is UFMIP and how does it affect my loan?
A1: UFMIP (Upfront Mortgage Insurance Premium) is a one-time fee of 1.75% of your base loan amount, charged on all FHA loans regardless of down payment. On a $289,500 base loan, UFMIP equals $5,066.25. Most borrowers finance it into the total loan amount to avoid paying it at closing — this increases the loan from $289,500 to $294,566.25 and slightly raises the monthly P&I payment.
Q2: How long do I pay monthly MIP on an FHA loan?
A2: If your down payment is less than 10% (LTV above 90%), you pay monthly MIP for the entire life of the loan — it never cancels. If your down payment is 10% or more (LTV at or below 90%), monthly MIP is automatically cancelled after 11 years. This is a key difference from conventional PMI, which cancels at 80% LTV regardless of down payment amount.
Q3: What is the monthly MIP rate for my FHA loan?
A3: The annual MIP rate depends on your loan term, loan amount, and LTV. For the most common scenario — a 30-year loan over $150,000 with LTV above 95% (less than 5% down) — the rate is 0.85% annually, which equals $205.06/month on a $289,500 base loan. Putting 5% or more down reduces LTV to 95% or below, which can reduce the rate to 0.80% on a 30-year loan.
Q4: How does an FHA loan compare to a conventional loan with the same down payment?
A4: With 3.5% down at the same interest rate, the conventional loan has a slightly lower monthly payment ($2,482.75 vs $2,515.61) because it has no UFMIP and its PMI eventually cancels at 80% LTV after about 134 months. The FHA loan's MIP lasts the full 30 years, adding $73,822.50 in total MIP costs. However, FHA loans are more accessible — they allow credit scores as low as 580 and are more lenient on debt-to-income ratios.
Q5: Can I remove MIP from my FHA loan by refinancing?
A5: Yes — one common strategy is to use an FHA loan to purchase the home, then refinance into a conventional loan once you reach 20% equity (80% LTV). At that point you can eliminate MIP entirely. This approach combines FHA's low down payment accessibility with the long-term cost savings of a conventional loan without PMI. Use this calculator alongside the Refinance Calculator to compare your options.
This calculator provides estimates for informational purposes only. Actual FHA loan terms and MIP rates may vary based on FHA guidelines, lender requirements, and credit score. Consult a licensed mortgage professional before making financial decisions.