How to use this FHA mortgage calculator:

• Price of Home – Enter the price of the home you want to buy. If you do not have a home in mind yet, just add in a number in the range you expect to want to buy a home for.
• Mortgage – The second field titled “mortgage”, is by default on a 30 year fixed loan schedule.  This is the most common loan repayment schedule selected for FHA loans.  You can change it to 20 years, 15 years, or 10 years if you want a shorter loan amortization.
• Interest Rate – This calculator is by default set at a 4% interest rate.  You may adjust this amount.
• Down Payment – FHA loans require a 3.5% down payment.  If you would like to put more down, you may adjust the amount of the down payment.
• State – Select the state that you wish to purchase a property in.  This will update the estimated amount of property taxes,
• Property Taxes – After you select your state, this will update the amount of estimated property taxes you will be require to pay.
• Annual Insurance – The amount that the annual homeowners insurance will cost depends on the property you intend to buy, your homeowners insurance claim history (if you have owned a home before, and had to make a claim), and the specific homeowners insurance company that you select to insure your home.

After submitting information into these fields, it will calculate how much the estimated FHA mortgage payment will be.

• FHA Base Loan Amount -This is your loan amount after subtracting your down payment from the purchase price, but prior to adding in the FHA upfront mortgage insurance premium (UPMIP).
• FHA Upfront MIP – All FHA loans require a 1.75% upfront mortgage insurance premium to be paid.  This is calculated from the base loan amount.
• FHA Total Loan Amount – This is the combined total of your FHA base loan amount (after subtracting the down payment), along with the FHA UPMIP. You have the option to pay the FHA UPMIP amount out of pocket, or you can include it in the loan amount.  Most borrowers decide to include it in the loan amount, so we have it automatically added on the calculator.
• Principle and Interest – This is the amount of your mortgage payment before adding mortgage insurance, property taxes, and property insurance.
• FHA MIP – This is the monthly mortgage insurance premiums required on all FHA loans.   The amount depends on the type of loan, how many years the repayment schedule is (such as 15 years or 30 years), and the loan-to-value (LTV) ratio.  A 15 year loan with a LTV less than 90%, the monthly MIP will be 0.15%.  A 15 year loan with a LTV greater than 90%, the monthly MIP will be 0.40%.  For a 30 year loan with a LTV less than 95% the monthly MIP is 0.50%.  For a 30 year loan with a LTV greater than 95%, the monthly MIP is 0.55%.
• Monthly property taxes – This is the estimated amount of property taxes that you will need to pay monthly.
• Monthly insurance – This is the estimated amount of homeowners insurance that you will need to pay monthly.