FHA Loan Calculator
FHA mortgage with MIP insurance
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Working out FHA mortgage with MIP insurance is easier with FHA Loan Calculator, which answers as you type. Just enter Home Price ($), Down Payment (%) and Interest Rate (%); FHA Loan updates the result as you type. The answer from FHA Loan arrives with its working attached. FHA Loan suits budgeting and planning checks. Nothing typed into FHA Loan leaves your device or the tab. Looking for fha loan calculator mortgage mip or free online fha loan calculator? FHA Loan covers both. FHA Loan goes from question to answer fast. Try FHA Loan now and keep it handy.
The full FHA payment, not just principal and interest
With the defaults — $250,000 price, 3.5% down, 6.5% for 30 years — the loan is $241,250, principal and interest come to about $1,525, and annual mortgage insurance at 0.55% adds roughly $110.57 a month. The total is $1,635.44, plus an upfront premium of $4,222 (1.75% of the loan).
FHA pricing is unusual because insurance appears twice: once at closing as a lump sum, and every month for the life of most loans.
How FHA mortgage insurance works
FHA loans carry two insurance charges. An upfront MIP of 1.75% of the base loan is added at closing, and an annual MIP of 0.55% (the common rate for 30-year loans above 90% LTV) is billed monthly:
Monthly MIP = Base loan × 0.55% ÷ 12
On a $350,000 base loan: upfront MIP = $350,000 × 0.0175 = $6,125; monthly MIP = $350,000 × 0.0055 ÷ 12 = $160.42.
Your county sets the limit; the MIP rate does not change
Two things about an FHA loan are regional and one is not. The MIP percentages above are set nationally, so they are the same in every state. The maximum loan amount is not: HUD publishes a limit for every county in the USA each year, with a floor for low-cost areas and a higher ceiling for high-cost ones, revised annually with house prices. Look up your own county’s current limit before modelling a loan here — an amount that sits comfortably inside the limit in one county can be over it in the next, and anything above the limit needs a conventional or jumbo product instead. This calculator prices MIP from the base loan you enter; it does not check that amount against your county limit.
The programme itself is USA-only — Canada covers high-ratio mortgages through CMHC default insurance added to the loan balance, and UK lenders usually price high loan-to-value borrowing into the interest rate instead of an insurance charge — so these limits and these MIP figures describe US properties.
| Base loan | Upfront MIP (1.75%) | Monthly MIP (0.55%) |
|---|---|---|
| $200,000 | $3,500 | $91.67 |
| $300,000 | $5,250 | $137.50 |
| $400,000 | $7,000 | $183.33 |
| $500,000 | $8,750 | $229.17 |
MIP rates and duration depend on the loan term and LTV — confirm the current schedule on HUD’s website. Related: the loan EMI calculator for the payment itself, the PMI calculator for conventional loans, and closing costs.
Step one: the loan and the upfront premium
Loan = price × (1 − down%) = $250,000 × 0.965 = $241,250.
Upfront MIP = loan × 1.75% = $4,221.88, usually financed into the balance rather than paid in cash.
Step two: principal and interest
The amortising payment is P × r × (1+r)^n ÷ ((1+r)^n − 1), with r = 6.5% ÷ 12 = 0.0054167 and n = 360. For a $241,250 loan that is about $1,524.87. The exponent term is why small rate changes matter: 7% on the same loan adds roughly $80 a month.
Step three: the monthly insurance
Annual MIP = loan × 0.55% = $1,326.88, so monthly = $110.57. Combined with $1,524.87 that is $1,635.44 — the headline figure.
On an FHA loan the 0.55% rate applies to a 30-year loan with 3.5% down. Put 5% down and the rate steps down; put 10% down and it drops further. Below 10% down on a 30-year term, MIP normally lasts the life of the loan — the single most expensive detail in this product.
Comparing it honestly with a conventional loan
A conventional loan at 90% LTV carries its own PMI, typically cheaper per month but removable at 78–80% LTV. On the same $250,000 house with 3.5% down, FHA usually wins on the rate and loses on the duration of the insurance. Run both: the FHA number above against a conventional quote, and compare the total paid over the first seven years, not the first payment.
What is not in this figure
Property tax, homeowners insurance, HOA dues and any lender fees. Those typically put a further 20–30% on a monthly housing payment in most US metros, so treat $1,635.44 as the mortgage part only.
Frequent errors
- Entering the down payment in dollars. It is a percentage: $8,750 entered as 8750 gives a negative loan.
- Assuming MIP ends like PMI. At 3.5% down on a 30-year term it generally does not.
- Ignoring the upfront premium. Financed at 1.75%, it adds to the balance and therefore to every monthly payment.
- Using the note rate as the APR. The APR includes the insurance and fees, which is why the two numbers on an FHA disclosure differ so much.
Frequently Asked Questions
Why is the monthly total $1,635.44?
Principal and interest of about $1,524.87 plus monthly MIP of $110.57. The figure excludes taxes and homeowners insurance, which most lenders collect alongside it.
How long do I pay FHA mortgage insurance?
With 3.5% down on a 30-year loan, normally for the life of the loan. Put 10% or more down and it ends after 11 years; a 15-year term with 10% down ends it at 78% LTV.
What is the 1.75% upfront premium?
A one-time charge of 1.75% of the loan — $4,222 here — usually added to the balance rather than paid at closing. Adding it raises the monthly payment slightly because the loan it is financed into is larger.
Can I avoid MIP with a larger down payment?
You can reduce it, and at 20% down an FHA loan normally has no monthly MIP at all. At that point a conventional loan is usually the better comparison, since it has no upfront premium.
Is 3.5% really the minimum down payment?
For borrowers with a 580+ credit score, yes. Between 500 and 579 the minimum is 10%, and below 500 FHA financing is generally unavailable.
Can I use this page for "mobile home loan payment calculator"?
FHA Loan Calculator handles that: set the Home Price, Down Payment, Interest Rate and the result updates instantly, with the working shown.
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