FHA Loan Calculator

Frequently Asked Questions about FHA Mortgages

How much is the FHA UFMIP right now?

The FHA UFMIP (Upfront Mortgage Insurance Premium) is 1.75% of the base loan amount, effective March 20, 2023 under Mortgagee Letter 2023-05. Example from this calculator: a $400,000 home with a 3.5% down payment produces a $386,000 base loan, so the UFMIP is $6,755.00. This premium can be financed into the loan (making the loan $392,755.00) or paid in cash upfront. Program rules can change — verify with your lender.

How is the monthly FHA MIP calculated?

The annual MIP follows the Mortgagee Letter 2023-05 tiers, effective March 20, 2023: for a 30-year term, 0.55% per year if the starting LTV is above 95% and 0.50% otherwise; for a 15-year term, 0.40% if LTV is above 90% and 0.15% otherwise. Monthly MIP = annual tier × loan amount ÷ 12. Example: 0.55% tier × $392,755.00 loan ÷ 12 = $180.01 per month. Program rules can change — verify with your lender.

When does FHA MIP stop?

The 11-year rule applies: if the starting LTV is 90% or less, MIP ends after 11 years (132 months); if the starting LTV is above 90%, MIP lasts for the life of the loan. Example: a $400,000 home with a 3.5% down payment (96.5% LTV) on a 30-year term carries MIP for the full 360 months, totaling $64,804.58 in MIP. Use the “When Does MIP End” mode in this calculator to estimate your MIP end date. Program rules can change — verify with your lender.

Is it better to finance the UFMIP or pay it upfront?

This is a math comparison, not a recommendation. Example from this calculator ($400,000 home, 3.5% down, 7% rate, 30-year term): if the $6,755.00 UFMIP is financed, the P&I payment is $2,613.01 per month; if paid in cash upfront, the P&I payment is $2,568.07 per month. The difference is $44.94 per month, or $16,178.40 over 30 years — because when financed, you pay interest on the premium for the life of the loan. Paying upfront requires more cash at closing. Match the choice to your finances and discuss it with your lender.

What is the minimum down payment for an FHA mortgage?

The general FHA program rule: a minimum 3.5% down payment for borrowers with a credit score of 580 or higher. This calculator shows that minimum as a note and allows simulating from 0% so you can compare scenarios. Actual requirements (including credit score thresholds and document verification) are set by the lender and current program rules — verify with your lender since program rules can change.

What is PITI and how does this calculator compute the monthly total?

PITI stands for Principal & Interest, property Tax, and homeowner’s insurance — on an FHA mortgage plus the monthly MIP. Example from this calculator: P&I $2,613.01 + MIP $180.01 + tax $400.00/month + insurance $150.00/month = $3,343.02 per month total. Tax and insurance are usually collected through an escrow account along with the mortgage payment.

How is this calculator different from Mortgage Insurance Lab?

This FHA mortgage calculator computes the FULL monthly payment: P&I + monthly MIP + property tax + homeowner’s insurance, plus the UFMIP comparison and the MIP end-date estimate. For deeper mortgage-insurance math — conventional PMI rate estimates, PMI vs MIP cost comparisons, PMI cancellation dates, or VA/USDA fees — use the Mortgage Insurance Lab calculator at https://nrtechstudio.com/tools/mortgage-insurance-lab/.

Can FHA MIP be removed by refinancing?

Under general program rules, FHA MIP follows the 11-year or life-of-loan rule described above and does not “drop off automatically” when equity reaches 20% the way conventional PMI does. Some borrowers refinance into a conventional mortgage to stop MIP, but that is a new loan with different terms, costs, and interest rate. This is general information, not advice — discuss your options with a licensed lender since program rules can change.

Where do this calculator’s MIP rates come from?

The 1.75% UFMIP rate and the annual MIP tiers (0.55%/0.50% for 30 years; 0.40%/0.15% for 15 years) come from Mortgagee Letter 2023-05 effective March 20, 2023, along with the 11-year rule for MIP termination. Regulatory facts carry an explicit date stamp so you know the reference; program rules can change — verify with your lender.

Are this calculator’s results financial advice?

No. Every number on this page is an educational estimate for informational purposes — not financial advice, not a loan offer, and not a product recommendation. FHA program rules can change at any time. Always verify final numbers with a licensed lender before making financial decisions.