Calculate your monthly payment including FHA mortgage insurance premiums (MIP).
FHA loans are backed by the Federal Housing Administration and are designed for borrowers with lower credit scores or smaller down payments. They allow down payments as low as 3.5%.
Because FHA loans are riskier for lenders, they require Mortgage Insurance Premiums (MIP). There is an upfront MIP of 1.75% of the loan amount (which this calculator rolls into your loan balance), and an annual MIP (usually around 0.55%) paid monthly. If you put down less than 10%, this monthly insurance usually lasts the life of the loan.
If you have a down payment of 3.5% or more and a credit score of at least 580, an FHA loan can get you into a home faster than a conventional loan. However, because of the mortgage insurance, it is often more expensive over time. You can refinance into a conventional loan later once you have 20% equity to drop the MIP.
← Back to all mortgage calculators