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When you want to buy a home with an FHA loan, a good first step is to estimate your monthly payment. That’s why we provide this free FHA loan mortgage calculator!

Our calculator uses the purchase price of a house as its starting point and then considers things like your down payment and interest rate. The results show your total payment as well as a breakdown of your FHA mortgage bill. Change the default values in the calculator to get a more personalized estimate.

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FHA Calculator

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About our FHA loan calculator results

Our calculator shows your estimated total monthly FHA loan payment as well as the breakdown of what you’ll pay with your monthly mortgage bill. There are three main parts to your monthly payment:

  • Principal and interest. Principal is the amount of money you borrow to buy your home. Interest is the cost your pay your lender to borrow this money. In the early years of your loan, most of your payment will go toward paying interest. In the later years of your loan, most of the payment will go to paying down your principal.
  • MIP (Mortgage Insurance Premiums). All FHA loans require you to pay for mortgage insurance as part of your monthly bill. The cost of MIP is affected by your loan amount, term, and other factors. Learn more about mortgage insurance premiums for FHA loans.
  • Property taxes and homeowners insurance. You’ll also be required to make payments each month toward the yearly cost of your property taxes and homeowners insurance when you buy a home with an FHA loan. These are sometimes called escrow payments because the money is kept in an escrow account until the taxes and insurance come due.

Change the values for purchase price, down payment, term, and interest rate to see how they can affect your payment estimate. Keep in mind that FHA loans have a minimum down payment of 3.5% and that changing the loan’s term can significantly change your estimated monthly payment.

How much home can you afford with an FHA loan?

You can also use our FHA loan calculator to help you estimate the price of houses you can afford. To do this you just need to look at the cost of your monthly mortgage bill plus other payments you might have for things like car loans, student loans, or credit cards.

When you buy a home with an FHA loan, you want to make sure you can afford all your monthly bills including your mortgage payment. Lenders like Freedom Mortgage will consider your total monthly debt payments too before we approve your application for an FHA loan.

We typically do this by calculating your debt-to-income ratio (DTI). Let’s look at a sample calculation. Say you want to get an FHA loan with a monthly payment of $1,500. Then say you have car loan and student loan payments that cost another $1,000 a month. This make your total monthly debt payments $2,500.

Now pretend your monthly gross income is $6,250 which works out to $75,000 a year. To get your debt-to-income ratio, divide your $2,500 monthly debt payments by your $6,250 monthly income and get 40%. (That is $2,500 ÷ $6,250 = 0.40 or 40%.)

This percentage is important to know because FHA loans often have a maximum DTI of 43%. That means your debt-to-income ratio has to be 43% or lower to get your FHA loan approved. Debt-to-income ratio can also help you make sure your FHA loan payments are affordable with your overall monthly budget.

Talk to Freedom Mortgage about FHA loans

Freedom Mortgage is the #1 FHA lender1 in the United States. Ask us about buying a home with an FHA loan today. Visit our Get Started page or call us at
877-220-5533.

1 Inside Mortgage Finance, 2020

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Contact Us

Get started today by getting a personalized evaluation of your home loan options from Freedom Mortgage.

877-220-5533