Broker DaveFHA payment calculator
3.5% down, an upfront MIP financed into the loan, and an annual MIP that either falls off at year eleven or never falls off at all. This calculator runs HUD's actual premium rules — including the average-balance formula most FHA calculators skip — and shows you the whole schedule.
The purchase
$14,000 down · 96.50% LTV
30 yrs — 360 is a 30-year note, 180 a 15-year.
Escrows
1.10% of the price · $366.67/mo
$200.00/mo
Leave at 0 if there's no association.
FHA mortgage insurance
FHA needs 3.5% down at this score. MIP itself is priced on LTV, term and loan size — never on credit.
$386,000 loan at 6.25% · 96.50% LTV · 30 yrs
The monthly payment
- Principal & interest
- $2,418.26
- Property taxes
- $366.67
- Homeowners insurance
- $200.00
- FHA annual MIP
- $175.80
- Total payment
- $3,160.73
Loan & cash to close
- Purchase price
- $400,000
- Down payment (3.50%)
- $14,000
- Base loan amount
- $386,000
- Loan-to-value
- 96.50%
- Upfront MIP (1.75%)
- $6,755
- Total loan amount (fee financed)
- $392,755
- Financed loan as a % of value
- 98.19%
- Cash to close
- $14,000
Cash to close here is the down payment plus any fee you chose not to finance. Title, escrow, appraisal, points and prepaids are separate — those come off a Loan Estimate, not a calculator.
FHA mortgage insurance
- Upfront MIP (1.75% of the base loan)
- $6,755
- Financed into the loan
- $392,755
- Annual MIP rate
- 0.55%
- Charged for
- life of the loan
- First month's MIP
- $175.80
- Annual MIP paid over the term
- $41,148
- Lifetime FHA mortgage insurance
- $47,903
Where 0.55% comes from: HUD Handbook 4000.1 Appendix 1.0, as revised by Mortgagee Letter 2023-05. A greater than 95% LTV on a 30 yrs term with a base loan at or below the national conforming limit ($832,750) prices at 55 basis points, collected for life of the loan.
And how it's computed: HUD re-strikes the premium once a year against the AVERAGE scheduled balance for that year, then — when the upfront MIP was financed — divides by 1.0175 so you aren't charged MIP on the MIP you rolled in. That is HUD's published periodic-premium formula, and it is why this figure runs a little under a naive balance × rate ÷ 12.
This MIP never falls off. Above 90% LTV the premium runs the full term, and the only ways out are a refinance into a conventional loan once you have 20% equity, or selling.
Amortization schedule
Every payment, with interest, principal, fha annual mip and the balance — yearly or month by month.
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Two premiums, and only one of them ever goes away
Upfront MIP — 1.75%
Charged once, on the base loan amount, on every FHA purchase regardless of credit, down payment or term. Almost everyone finances it, which makes the loan bigger than the price minus the down payment.
Annual MIP — 0.15% to 0.75%
Collected monthly, priced on LTV, loan term and loan size — never on your credit score. At 3.5% down on a 30-year note it's 0.55% of the average balance each year.
The 11-year rule
Put 10% or more down and the annual MIP stops after 11 years. Put less down and it runs the full 30 — the only exits are refinancing into a conventional loan or selling the house.
What this calculator gets right that most don't
- The average-balance formula. HUD re-strikes the premium once a year against the average scheduled balance for that year, then holds it flat for twelve payments. A calculator that multiplies today's balance by the rate every month gets a different — and wrong — number.
- Backing the financed UFMIP out. When the upfront premium is rolled in, HUD divides the balance by 1.0175 before applying the annual rate, so you aren't charged MIP on the MIP you financed.
- The right rate table. Rates and durations come from HUD Handbook 4000.1 Appendix 1.0 as revised by Mortgagee Letter 2023-05, including the higher tier for base loans above the national conforming limit and the separate, much cheaper grid for terms of 15 years or less.
- Minimum down payment by score. 3.5% at 580 or better, 10% below it — flagged the moment your inputs stop being an approvable loan.
FHA loan limits vary by county and are not modeled here — a loan can price perfectly on this page and still exceed the limit where you're buying. This calculator is educational and is not a loan offer, a rate quote, or a commitment to lend. Every figure is an estimate. David Lurvey, NMLS 410420.