How To Calculate an FHA Mortgage Payment

Mortgage and Lending with AmeriFirst Financial Inc, San Diego, CA NMLS 259027

How to calculate an FHA mortgage payment has evolved again, now that the most recent Monthly Mortgage Insurance changes have been implemented via HUD Mortgagee Letter 2013-04 (13-04)

How to calculate FHA mortgage payments - Provided by Jason E. Gordon, San Diego, CA

How to calculate an FHA mortgage payment


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

Click here to access a free mortgage payment calculator for principal + interest payments

           2.    Property Taxes = Purchase Price of home x 0.0125 divided by 12 months

3.    Monthly Mortgage Insurance (MMI) = Base Loan Amount x 0.0135 divided by 12 months

Note: If the down payment is 5.00% or more, you will use 0.0130 instead of 0.0135 (see chart below for additional MMI options & scenarios)

4.    Homeowners Insurance (internal "walls-in" coverage: Feel free to estimate roughly $60.00 - $80.00 per month (this number will vary depending on your insurance coverage amounts and insurance company)

Note: Other names for this insurance include "Hazard Insurance" and "Fire Insurance" (these terms all refer to the same type of insurance)

5.    Homeowners Association (HOA) Dues (Condominiums): This payment (when applicable) will vary depending on which condominium you choose.

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)

6.    Total FHA Mortgage Payment (add the total of numbers 1-5)


By following these simple steps, you now know how to calculate an FHA mortgage payment. Additional MMI options are listed below (based on variances of loan amount, LTV (down payment), and amortization term):


FHA Monthly Mortgage Insurance -


Lastly, an important distinction to make from FHA loans of the past, is that the duration of time that the Monthly Mortgage Insurance (MMI) must be maintained has changed significantly:


FHA Monthly Mortgage Insurance Periods -


For more information and transparency about mortgage items like this, please feel free to contact me. In the meantime, I do hope this information was useful in helping you to learn how to calculate an FHA mortgage payment.

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For more information on topics like this, please feel free to visit (an educational resource for Borrowers, Real Estate Agents, and Financial Professionals). Educational content provided by:


Jason E. Gordon

Branch Manager | Sr. Mortgage Loan Officer



Gordon Mortgage Group - AmeriFirst Financial Inc.


Office: 619-200-8031



11440 W. Bernardo Court, Ste. 300, San Diego, CA 92127


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Andrew Payne Realtor® Richmond VA Homes For Sale~804-938-5257~
Coach House Realty - Richmond, VA
Richmond, VA, Real Estate, SRES®, NAR Green


This post is very practical.  Any time we can teach the public how to do something, it can be a great benefit.  The steps and calculations you show are very easy to read and follow.  Hopefully, you'll get some new home loans from people reading this post soon!

Feb 15, 2014 05:33 AM #1
Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr. Loan Officer, CMPS, CDLP, RCS-D, CDPE, CMHS

Thanks Andrew! There are so many moving parts in the loan (and homebuying) process. My goal is to help break important topics like this down into "bite sized pieces" whenever possible. Good luck to you!

Feb 15, 2014 06:04 AM #2
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

This is great information that I will pass along to some of the realtors I know...and bookmark...thanks!

Feb 15, 2014 06:19 AM #3
Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr. Loan Officer, CMPS, CDLP, RCS-D, CDPE, CMHS
Thank you Ron...happy to assist!
Feb 15, 2014 06:48 AM #4
Robert Vegas Bob Swetz
Realty ONE Group - Las Vegas, NV
Las Vegas Henderson Homes for Sale

 Hello Jason ... Some great information and very well done presenting this information within a post! Featured to the group:



Feb 16, 2014 01:38 AM #5
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Jason E. Gordon

Sr. Loan Officer, CMPS, CDLP, RCS-D, CDPE, CMHS
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