Mortgages insured by the Federal Housing Administration require a smaller down payment, have lower closing costs and may allow for a lower income and credit score. Estimate your monthly FHA loan payment with our FHA loan calculator.
What is an FHA loan calculator?
The NerdWallet FHA mortgage calculator is a tool that you can use to estimate both the monthly payment you'll make and the total cost of financing your home with an FHA loan.
To get started, fill in:
The price you want to pay for a home.
Your down payment.
Your interest rate.
Next, choose whether you're interested in a 15- or 30-year loan.
The FHA loan calculator will generate an estimated monthly payment based on your inputs. Then, you can dive down into as much detail as you like.
Select "Monthly" to see the costs you'll pay toward your FHA loan each month. Choose "Total" for a breakdown of how much you'll pay over the life of the loan, as well as the upfront costs. This includes FHA mortgage insurance — how much you’ll pay at closing, what the monthly premium will be and how long you’ll pay it.
Armed with a rough idea of what you can afford based on how much your monthly payment will be, you’ll be ready to shop FHA lenders to find a competitive mortgage rate.
How can an FHA loan calculator help me?
NerdWallet’s FHA loan calculator answers that big question: “How much house can I afford?” With this calculator, you can run the numbers on various “what-if” scenarios. For example, you could consider:
How long will I stay in this home? Whether it's a starter home or your forever home may help determine whether you should choose a 30-year fixed rate FHA loan. A longer term will lower your monthly payment, but you’ll pay a lot more interest over that long term. A 15-year fixed-rate FHA mortgage will slash the total interest, but your monthly payment will be higher.
Is an adjustable-rate mortgage a better option for me? An adjustable-rate mortgage can be a good loan solution for home buyers who only plan to stay in a home for a few years. For example, a 5/1 FHA ARM will give you a lower initial interest rate that’s fixed for five years, then changes annually after that.
Am I trying to buy too much house? The FHA mortgage calculator helps you gut-check your home-buying budget. Because it’s considering your all-in monthly payment costs, including FHA mortgage insurance premiums, you’ll have more confidence that you’re looking for the right house at the right price for your income.
How large of a down payment should I make? This is an important question, particularly for FHA loans. While your FHA down payment can be as low as 3.5%, making a down payment of 10% or more means your mortgage insurance premiums will end after 11 years. Put down less than 10%, and you’ll be stuck with those premiums for the life of the FHA loan. You'd have to refinance into a conventional mortgage to cancel the insurance.
What costs are built into a monthly FHA mortgage payment?
NerdWallet’s FHA loan calculator considers the following costs when estimating your monthly FHA loan payments:
Principal. This is the amount you owe on the loan; what you borrowed minus your down payment. For example, if you buy a $250,000 home and put down 10% ($25,000), the principal would be $225,000.
Interest. This is the cost of borrowing the money from a lender, expressed as an annual percentage.
Property taxes. Annual taxes assessed by a government authority on your home and land are often collected as a part of your payment and paid through an escrow account.
FHA mortgage insurance. This is a cost built into FHA loans. You’ll make an upfront premium payment at closing, while ongoing premiums are factored into your monthly payment.
Homeowners association (HOA) fee. If you're buying a house, townhome or condo that is governed by a homeowners organization, you may have to pay monthly or annual dues that cover upkeep and improvements to shared amenities.
How can I lower my FHA mortgage payment?
If the numbers in your FHA loan payment calculation seem a bit high, there are ways to lower them:
Extend the loan's term. If you don't plan to move, you can extend the number of years you’ll pay, say from 15 to 30 years. Yes, you’ll pay more interest over that longer timeframe, but your monthly payment will be significantly lower.
Buy less house. A smaller loan means smaller payments. Maybe you can do with a "good enough" home to start and make improvements over the coming years.
Avoid paying mortgage insurance premiums for any longer than necessary. FHA loan requirements mandate mortgage insurance premiums, but to avoid paying them for the life of the loan, consider making a down payment of at least 10%. With a down payment of 10% or more, your mortgage insurance premiums will end after 11 years
Get a better interest rate. Shop at least three FHA lenders to get the best shot at a lower interest rate. And mix up the competition: consider lenders that are local, national and online-only.
Can my FHA monthly payment go up?
Yes. Here are a few instances when your monthly payment can go up, even after you’ve closed the loan and moved in:
If you have an adjustable-rate mortgage, your interest rate can rise after your initial fixed-interest rate term ends.
Escrow items built into your monthly payment, such as property taxes or homeowners insurance premiums, are likely to go up over time. While you can't do much about property taxes — aside from moving to a different area — you can always shop around for a new homeowners insurance policy.
If you run behind on making a monthly payment, you can expect a late payment fee.