How this number is made
An FHA loan payment is the amortizing payment on the amount financed, plus annual mortgage insurance divided by 12. The upfront premium is added to the loan in this page. The 1.75% and 0.55% defaults are placeholders, not a promise of this year’s FHA schedule. Confirm both percents before you rely on the payment.
- Down payment is a percent of price. FHA has a minimum that depends on the credit score. This page does not check it.
- Replace the insurance percents with the ones in the quote.
Formula
Base loan = price × (1 − down payment). Amount financed = base × (1 + upfront percent). Monthly insurance = base × annual percent ÷ 12. Payment = principal and interest on the amount financed, plus monthly insurance.
Worked example
With the figures already in the form, monthly principal, interest, and mip is $2,393.46.
Questions
Are the default percents current?
Treat them as placeholders. FHA changes the annual premium by term, loan size, and down payment. The upfront percent has also been changed before.
Does this include taxes and insurance on the house?
No. Those are escrow. Mortgage insurance here is the FHA premium only.