How To Calculate FHA Mortgage Payments

How to calculate FHA mortgage payments now that the most recent Monthly Mortgage Insurance changes have been implemented.

How to calculate FHA mortgage payments

Step 1: Determine the loan amount

1. Purchase Price x .965 = Base Loan Amount (assuming the Borrowers opt for the minimum 3.50% down payment)
2. Base Loan Amount x .0175 = Up Front Mortgage Insurance Premium (UFMIP)
3. Base Loan Amount + UFMIP = Final Loan Amount

Step 2: Determine the monthly payment

1. Principal + Interest Payment Calculation
   1. Click here to access a free mortgage payment calculator
   2. When the new window pops up, click on:
   • The "resources & tools" tab
   • Then "mortgage calculators"
   • Then "payment/amortization" and plug in the following:
   • Loan Amount (use the Final Loan Amount)
   • Interest Rate
   • Number of years
   • Click CALCULATE (you will then see the amount of your Principal + Interest payment)

• Note: if the down payment is 5.00% or more, you will use 0.0120 instead of 0.0125

• Note: If you buy a condominium, you can expect your Homeowners Insurance to be slightly lower (closer to the $35.00 - $45.00 per month range)

By following these simple steps, you now know how to calculate FHA mortgage payments.