FHA Mortgage Calculator Monthly Payment

FHA Monthly Payment Formula:

\[ M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} + PMI \]

Loan Principal (P):

USD

Annual Interest Rate:

Loan Term:

years

Monthly PMI:

USD

Monthly Payment (M):

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1. What is FHA Monthly Payment Calculation?

The FHA monthly payment calculation determines your total monthly mortgage payment for an FHA loan, including principal, interest, and required mortgage insurance (PMI). It helps borrowers understand their financial commitment before applying for an FHA loan.

2. How Does the Calculator Work?

The calculator uses the FHA monthly payment formula:

\[ M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} + PMI \]

Where:

\( M \) — Monthly payment (USD)
\( P \) — Loan principal amount (USD)
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Total number of payments (loan term in years × 12)
\( PMI \) — Monthly mortgage insurance premium (USD)

Explanation: The formula calculates the base mortgage payment (principal + interest) and adds the required FHA mortgage insurance premium.

3. Importance of Accurate Payment Calculation

Details: Understanding your exact monthly payment helps with budgeting and ensures you can comfortably afford the FHA loan. FHA loans typically have lower down payments but require mortgage insurance.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate, loan term in years, and monthly PMI amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is PMI in FHA loans?
A: PMI (Private Mortgage Insurance) is required for FHA loans and protects the lender if you default. It's typically 0.45% to 1.05% of the loan amount annually.

Q2: How long do I pay PMI on an FHA loan?
A: For FHA loans, you typically pay mortgage insurance for the life of the loan unless you refinance to a conventional loan.

Q3: What's the minimum down payment for FHA?
A: The minimum down payment is 3.5% of the purchase price with a credit score of 580 or higher.

Q4: Are FHA interest rates higher?
A: FHA rates are often comparable to conventional loans, but the added mortgage insurance makes the overall cost higher.

Q5: Can I remove PMI from an FHA loan?
A: For loans originated after June 3, 2013, MIP (Mortgage Insurance Premium) cannot be canceled unless you refinance to a non-FHA loan.