FHA loan calculator
This FHA loan calculator adds the FHA upfront premium to your loan and the annual mortgage insurance premium to your payment, so the figure matches an FHA quote.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,681.84 | $19,533.48 | $310,522.16 |
| 2 | $3,918.68 | $19,296.64 | $306,603.48 |
| 3 | $4,170.73 | $19,044.59 | $302,432.75 |
| 4 | $4,439.00 | $18,776.32 | $297,993.75 |
| 5 | $4,724.53 | $18,490.79 | $293,269.22 |
| 6 | $5,028.42 | $18,186.90 | $288,240.80 |
| 7 | $5,351.84 | $17,863.48 | $282,888.96 |
| 8 | $5,696.08 | $17,519.24 | $277,192.88 |
| 9 | $6,062.47 | $17,152.85 | $271,130.41 |
| 10 | $6,452.41 | $16,762.91 | $264,678.00 |
| 11 | $6,867.45 | $16,347.87 | $257,810.55 |
| 12 | $7,309.16 | $15,906.16 | $250,501.39 |
| 13 | $7,779.33 | $15,435.99 | $242,722.06 |
| 14 | $8,279.68 | $14,935.64 | $234,442.38 |
| 15 | $8,812.27 | $14,403.05 | $225,630.11 |
| 16 | $9,379.08 | $13,836.24 | $216,251.03 |
| 17 | $9,982.35 | $13,232.97 | $206,268.68 |
| 18 | $10,624.45 | $12,590.87 | $195,644.23 |
| 19 | $11,307.82 | $11,907.50 | $184,336.41 |
| 20 | $12,035.17 | $11,180.15 | $172,301.24 |
| 21 | $12,809.30 | $10,406.02 | $159,491.94 |
| 22 | $13,633.20 | $9,582.12 | $145,858.74 |
| 23 | $14,510.14 | $8,705.18 | $131,348.60 |
| 24 | $15,443.44 | $7,771.88 | $115,905.16 |
| 25 | $16,436.79 | $6,778.53 | $99,468.37 |
| 26 | $17,494.04 | $5,721.28 | $81,974.33 |
| 27 | $18,619.28 | $4,596.04 | $63,355.05 |
| 28 | $19,816.92 | $3,398.40 | $43,538.13 |
| 29 | $21,091.57 | $2,123.75 | $22,446.56 |
| 30 | $22,446.56 | $767.11 | $0.00 |
FHA mortgage insurance
FHA loans carry an upfront mortgage insurance premium, 1.75% of the loan, which is usually financed into the loan, and an annual premium paid monthly. The annual rate varies with loan size, term and down payment; 0.55% is a common figure for a 30-year loan under the base limit. With less than 10% down, the annual premium lasts for the life of the loan, unless you refinance.
Who FHA loans suit
FHA loans allow as little as 3.5% down with a qualifying credit score and are more forgiving of past credit problems and higher debt ratios than many conventional loans. Their insurance costs more over time than conventional PMI for borrowers with good credit, so compare both. Loan limits vary by county and change each year.
$308,800 loan: 15-year vs 30-year
On a $308,800 mortgage, a 30-year loan at 6.25% costs $1,901.33 a month in principal and interest and $375,684 in total interest. A 15-year loan at a rate about 0.6 points lower costs $2,547.80 a month, $646.47 more, but cuts the interest to $149,804, saving $225,879. The right choice depends on whether the higher payment fits your budget with room to spare.
| Loan | Principal & interest | Total interest | Total paid |
|---|---|---|---|
| 10-year at 5.65% | $3,374.29 | $96,115 | $404,915 |
| 15-year at 5.65% | $2,547.80 | $149,804 | $458,604 |
| 20-year at 5.65% | $2,150.44 | $207,307 | $516,107 |
| 30-year at 6.25% | $1,901.33 | $375,684 | $684,484 |
What each 6.25% ± 1 point does to the payment
A one-point change in your mortgage rate moves the payment on $308,800 by roughly $205.23 a month and the lifetime interest by about $73,878 over 30 years. That is why it pays to compare several lenders on the same day.
| Rate | Principal & interest | Total interest | Difference vs 6.25% |
|---|---|---|---|
| 5.25% | $1,705.21 | $305,071 | −$70,612 |
| 5.75% | $1,802.07 | $339,948 | −$35,736 |
| 6.25% | $1,901.33 | $375,684 | +$0 |
| 6.75% | $2,002.87 | $412,235 | +$36,551 |
| 7.25% | $2,106.56 | $449,562 | +$73,878 |
Down payment and PMI on a $320,000 home
With less than 20% down, lenders charge private mortgage insurance (PMI), commonly 0.3% to 1.5% of the loan per year. This page assumes 0.55%. PMI usually ends when you reach 80% of the home's original value, which you can reach sooner with extra payments.
| Down payment | Loan amount | PMI / month | Total monthly payment |
|---|---|---|---|
| 5% ($16,000) | $304,000 | $139.33 | $2,429.44 |
| 10% ($32,000) | $288,000 | $132.00 | $2,323.60 |
| 20% ($64,000) | $256,000 | $0.00 | $1,994.57 |
What income does a $320,000 home need?
Lenders often look at a front-end ratio of about 28% of gross income for housing costs. A total payment of $2,461.19 implies a gross income near $105,000 a year, and lenders also weigh your other debts, which usually must keep total payments under about 36% to 43% of income.
Year one is interest-heavy: $19,197 of interest against $3,618 of principal repaid, which is why extra payments early on have the most effect.
How fast you build equity
Equity here is the home price minus the loan balance, assuming the price stays flat. Appreciation, if any, would add to it.
| After | Loan balance | Principal repaid | Equity (flat value) |
|---|---|---|---|
| 5 years | $288,226 | $20,574 | $31,774 |
| 10 years | $260,127 | $48,673 | $59,873 |
| 15 years | $221,751 | $87,049 | $98,249 |
| 20 years | $169,341 | $139,459 | $150,659 |
Frequently asked questions
What is the minimum down payment for an FHA loan?
Typically 3.5% with a credit score of 580 or higher, and 10% for lower scores, subject to lender requirements.
Does FHA mortgage insurance ever end?
With a down payment under 10%, it lasts the life of the loan. With 10% or more, it ends after 11 years. Refinancing into a conventional loan can remove it.
What is the monthly payment on a $308,800 mortgage?
At 6.25% over 30 years, principal and interest on $308,800 is $1,901.33. With the estimated tax, insurance, HOA and PMI above, the total comes to about $2,461.19 a month.
What is included in a monthly mortgage payment?
Principal and interest are the loan itself. Many lenders also collect property tax and homeowners insurance in escrow, and charge PMI if your down payment is under 20%. HOA dues are paid separately.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.