What does an FHA payment really cost?
FHA loan calculator
Preset to 3.5 percent down with FHA mortgage insurance included, because the mortgage insurance is the part that gets left out of most FHA estimates and it is the part that lasts.
Switch the program selector to conventional and compare. With credit in the 700s the conventional payment is often lower; below that, FHA is frequently the only realistic approval. Both facts can be true at once.
Mecklenburg ≈ 0.85%
NC average ≈ $1,650
0 if none
Estimated monthly payment
$2,442
$313,625 loan · 30 yr · 6.250%
- Principal & interest
- $1,931
- Property taxes
- $230
- Homeowners insurance
- $138
- Mortgage insurance
- $144
Cash down
$11,375
Interest over term
$381,551
Estimate only. Mortgage insurance, taxes and insurance are illustrative and vary by county, credit profile and program. This is not an offer to enter into an agreement or a commitment to lend. Not all applicants will qualify. Information and rates are subject to change without notice. All loans are subject to credit review and approval. Call 704-728-4548 for a quote built on your actual file.
See if FHA is your best option
I will run FHA and conventional side by side with your real credit profile and show you the dollar difference — monthly and over the years you expect to own.
What it accounts for
- FHA annual mortgage insurance, collected monthly, at the tier for your loan-to-value
- Principal and interest at the rate and term you set
- County property taxes and homeowners insurance
- HOA dues where they apply
What it cannot know
- It does not add the 1.75 percent upfront mortgage insurance premium to the balance. In practice that is financed, so your real loan amount is slightly higher than shown.
- Mortgage insurance figures are illustrative. HUD sets the actual premiums.
- It is not a rate quote.
Questions
About this calculation
On a loan taken above 90 percent loan-to-value, no — it lasts the life of the loan. At 10 percent down or more it drops off after eleven years. Otherwise the exit is a refinance into a conventional loan once you have equity.
1.75 percent of the loan amount, which is normally financed into the balance rather than paid at closing. It is separate from the annual premium collected in your monthly payment.
Over a long hold, usually yes, because the mortgage insurance does not come off. Over the first few years with thinner credit, often no. The comparison depends on your score and how long you keep the loan.
Output is an estimate for illustration and planning only, based on the figures you enter. It is not an offer of credit, a rate quote or a commitment to lend, and mortgage insurance figures are illustrative rather than quoted premiums. This is not an offer to enter into an agreement or a commitment to lend. Not all applicants will qualify. Information and rates are subject to change without notice. All loans are subject to credit review and approval. Fairway Home Mortgage is a division of Fairway Independent Mortgage Corporation. NMLS Entity ID #2289.
Next step
Numbers you can actually make an offer with.
A pre-approval takes about 24 hours from a complete document set and costs nothing. It replaces every estimate here with a figure a listing agent will take seriously.