Calculating a Mortgage Payment | FHA Purchase

How to Calculate an FHA Mortgage Payment

Calculating a mortgage payment the right way can be a tall order for most big bank employees, let alone your typical home buyer. Since most of the loan applications coming through these days are for FHA purchases with a 3.5% down payment and 30 year amortization, we’ll focus on that scenario for the time being.

Why is calculating an FHA mortgage payment so difficult?

One problem that seems to be consistent with the majority of online mortgage calculators is that they aren’t ‘preset’ for FHA loans; they’re usually based on a conventional loan scenario with the buyer putting down 20% or more.  Because of that discrepancy, the mortgage insurance premium is not included and the calculated monthly payment will be off by hundreds of dollars!  This can make calculating a mortgage payment very difficult.

How can I calculate an FHA mortgage payment THE RIGHT WAY?

• Use the calculator below or visit

For Loan Amount, multiply the purchase price of the home by .965 (ex. $200,000 home price x .965 = $193,000 loan amount)

For Interest Rate, estimate mid 3’s to low 4’s depending on credit situation

For Annual Taxes, enter the information found on the listing of the home you wish to buy, then divide by 12 to get the monthly amount.

For Annual Insurance estimate, multiply the home price by .008 (ex. $200,000 home price x .009 = $1600 annual estimated insurance, then divide by 12 to get monthly)

For Annual PMI, multiply the mortgage amount by .0135, then divide by 12 to get your monthly payment amount.

• Then add the monthly PMI, monthly taxes and monthly insurance to your mortgage payment o get your total monthly payment amount.


About the Author

Jason Gonzalez

Jason is a lifelong student of the mortgage industry that prides himself on his innovative ability to consistently find the best deals for his clients. With well over a decade of industry knowledge and experience, you can trust that he will help guide you in the right direction for your home financing needs. What separates Jason from everyone else is the fact that he cares so much about the people he helps, driving him to go above and beyond to make the dream of homeownership possible for all.

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