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FHA loan calculator

An FHA loan's low down payment comes with mortgage insurance that generic calculators leave out. This one includes both the upfront and monthly premiums, plus Michigan property taxes, for the real payment.

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FHA monthly payment $2,043.24 includes $132.69 monthly MIP

Base loan amount $289,500

Upfront MIP (financed) $5,066 1.75% of loan

Principal & interest $1,910.55

Monthly MIP $132.69

FHA payment breakdown

Principal & interest $1.9k
Monthly MIP $133

FHA loans need as little as 3.5% down, but mortgage insurance applies: 1.75% upfront (added to the loan) plus about 0.55% a year. With under 10% down, MIP usually lasts the life of the loan — refinancing to a conventional loan later can remove it.

Yearly amortization (principal & interest)View table

Year	Principal	Interest	Balance
1	$3,139	$19,787	$291,427
2	$3,358	$19,569	$288,069
3	$3,592	$19,335	$284,477
4	$3,842	$19,085	$280,635
5	$4,109	$18,817	$276,526
6	$4,395	$18,531	$272,131
7	$4,701	$18,225	$267,429
8	$5,029	$17,898	$262,400
9	$5,379	$17,548	$257,021
10	$5,754	$17,173	$251,268
11	$6,154	$16,773	$245,114
12	$6,583	$16,344	$238,531
13	$7,041	$15,886	$231,490
14	$7,531	$15,395	$223,959
15	$8,056	$14,871	$215,904
16	$8,616	$14,310	$207,287
17	$9,216	$13,710	$198,071
18	$9,858	$13,068	$188,213
19	$10,545	$12,382	$177,668
20	$11,279	$11,648	$166,389
21	$12,064	$10,863	$154,325
22	$12,904	$10,023	$141,421
23	$13,802	$9,124	$127,619
24	$14,764	$8,163	$112,855
25	$15,791	$7,135	$97,064
26	$16,891	$6,036	$80,173
27	$18,067	$4,860	$62,106
28	$19,325	$3,602	$42,781
29	$20,671	$2,256	$22,110
30	$22,110	$817	$0

Why FHA payments include two insurance charges

FHA insures the lender against loss, and it charges for that in two ways. Both are built into the payment above, so the total reflects the real cost.

Upfront premium: 1.75% of the loan, rolled into the balance.
Annual premium: roughly 0.55%, billed monthly as MIP.
Down payment: as low as 3.5% with a 580 credit score.
Term: 30-year fixed in this calculator.

That monthly MIP is why an FHA payment runs higher than the rate alone suggests — and at minimum down payment, it stays for the life of the loan.

Weigh FHA against conventional both ways in the payment calculator, and read the FHA loan guide for the full picture.

Frequently asked questions

How much is FHA mortgage insurance?

FHA charges two premiums: an upfront premium of 1.75% of the loan (usually financed in) and an annual premium — commonly around 0.55% of the balance — split into monthly payments. At the minimum 3.5% down, the annual premium lasts the life of the loan, which is FHA's main long-run cost.

What is the minimum down payment on an FHA loan?

3.5% with a 580 credit score, or 10% for scores between 500 and 579. On a $250,000 Michigan home that's $8,750 at 3.5% — and MSHDA's MI 10K DPA can cover most of it. See the first-time buyer guide.

When can I drop FHA mortgage insurance?

With less than 10% down, FHA's annual premium stays for the life of the loan — the standard exit is to build 20% equity and refinance into a conventional loan, which cancels insurance. With 10% or more down, the premium drops off after 11 years.