FHA Loan Calculator

How it works

Reading FHA mortgage cost estimates

FHA loan comparisons should include the supported mortgage-insurance and program-fee assumptions alongside principal and interest. Select the schedule or historical branch that matches the loan details, and review its eligibility notes before interpreting the result. The ownership-cost worksheet can help distinguish the mortgage payment from other housing costs. An estimate does not establish loan eligibility or replace a lender's disclosure.

Program mortgage estimate: formula and assumptions

Base loan = price−down payment; financed fee is added to principal. Annual insurance estimate = base loan×annual rate.

Verify the fee, exemptions, insurance schedule, and eligibility with the official program. Default percentages are illustrative inputs.

Verified program fee & insurance schedule: formula and assumptions

Upfront fee = base loan × applicable fee rate. FHA periodic MIP follows the original amortization average.

Choose verified current-policy assumptions. Fee tiers, cancellation duration and monthly FHA premium rounding are separate from actual extra-payment payoff. This calculator does not determine borrower eligibility.

Manual HUD periodic-premium worksheet: formula and assumptions

Monthly premium = round(round(round(average balance × annual premium rate) / (1+financed upfront rate)) / 12).

Uses decimal half-up currency rounding and the original amortization balances. The first year includes original principal and the next eleven balances. Rates are manual; the worksheet does not select a policy vintage.

Ownership costs & accelerated payments: formula and assumptions

Compare monthly contractual P&I with half-payment across 26 equivalent annual periods; keep MIP on its original monthly schedule.

Program fees, principal repayment, monthly insurance and continuing ownership costs have separate timelines. A shared horizon keeps property tax and home insurance in both comparisons even after payoff. The accelerated model is a planning convention, not a lender’s civil 14-day servicing schedule.

Historical FHA 78% cancellation check: formula and assumptions

Base-equivalent balance = note balance ÷ (1 + actual financed upfront premium ÷ original base loan). Compare with 78% of the lower original price/appraisal.

Checks historical program dates, short-term origination-LTV exceptions and the five-year minimum for longer loans. A threshold crossing permits a request only within the stated scope; it does not itself stop billing. The proportional premium normalization is an inference corroborated by HUD’s published Case Query example.

Worked example

Reference example currency: USD. These fixed examples do not change with your calculator preferences.

Using the Program mortgage estimate example:

Home price ($)

400000

Down payment (%)

20

Annual interest rate (%)

6.5

Term (years)

30

Upfront fee (% of loan)

1.75

Finance upfront fee

Yes

Annual mortgage-insurance rate (%)

0.55

Base loan = price−down payment; financed fee is added to principal. Annual insurance estimate = base loan×annual rate.

Example result

These are illustrative inputs. Change the values to explore a different scenario.

What to keep in mind

Verified-policy mode covers the stated standard forward FHA table for endorsement dates from March 20, 2023 through October 9, 2026. Eligibility, special programs and older vintages are excluded; manual modes use entered rates.

Current FHA cases use the documented duration rules. The separate historical 78% check verifies dates, original value, financed-premium normalization and minimum MIP duration; prepayment requests require servicer/HUD processing. Historical comparison premiums use entered vintage rates and a projected scheduled stop month; use a confirmed manual month for billing precision.

Formula references

• HUD Mortgagee Letter2023-05 (opens in a new tab)
• HUD periodic mortgage-insurance calculation (opens in a new tab)
• HUD: III.A.1.k, printed1178–1180, last revised2025-11-26 (opens in a new tab)
• HUD: 2013Lender Insurance Guide, printed37, Case Query screenshot (opens in a new tab)
• HUD: Final Monthly MIP Payment Date (opens in a new tab)
• HUD: Original Mortgage Amount, Upfront Factor, Percent Financed, UPB@78% (opens in a new tab)
• HUD: Printed1187, borrower-initiated cancellation/processing (opens in a new tab)

References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.

Common questions