1. What is FHA Loan Monthly Payment?

The FHA (Federal Housing Administration) loan monthly payment consists of principal, interest, and mortgage insurance premium (MIP). This calculator helps estimate the total monthly payment for an FHA-insured mortgage.

2. How Does the Calculator Work?

The calculator uses the FHA payment formula:

Where:

• \( PMT \) — Monthly payment (USD)
• \( PV \) — Loan amount (USD)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Total number of payments
• \( MIP \) — Annual mortgage insurance premium (USD)

Explanation: The first part calculates principal and interest, while the second part adds the monthly mortgage insurance premium.

3. Importance of Accurate Payment Calculation

Details: Understanding your exact monthly payment helps with budgeting and ensures you can comfortably afford the mortgage payments over the loan term.

4. Using the Calculator

Tips: Enter loan amount in USD, annual interest rate as a percentage, loan term in years, and annual MIP amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is MIP in FHA loans?
A: Mortgage Insurance Premium (MIP) is required for all FHA loans to protect lenders against losses if the borrower defaults.

Q2: How is MIP calculated?
A: MIP is calculated as a percentage of the loan amount and varies based on loan term, loan-to-value ratio, and base loan amount.

Q3: Can I remove MIP from my FHA loan?
A: For loans with LTV > 90%, MIP lasts for the life of the loan. For loans with LTV ≤ 90%, MIP can be removed after 11 years if certain conditions are met.

Q4: What's the difference between PMI and MIP?
A: PMI (Private Mortgage Insurance) is for conventional loans, while MIP is for FHA loans. MIP typically has different cancellation policies and premium structures.

Q5: Are property taxes and insurance included?
A: This calculator shows principal, interest, and MIP only. Your actual payment may include escrow for taxes and insurance if applicable.