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Imagine that you are on the verge of a new stage in your life - buying your own home. It's an important decision that requires thoughtful consideration and careful calculations. That's where our handy FHA loan calculator comes in.
I designed this tool so that everyone can easily and quickly find out what monthly payments you are expected to make, how much interest you have to pay, and what your total payments will be over the life of the loan. Just enter the required data and the calculator will give you accurate results instantly.
With this calculator, you will forget about complicated calculations and obscure formulas. All you have to do is enter the price of the home, down payment, loan term and interest rate. You can also factor in property taxes, home insurance, and HOA dues. In a blink of an eye, you can see how much will be taken out of your account each month and what additional costs await you.
I have tried to make this calculator as simple and intuitive as possible. There are no complicated terms or confusing instructions. Each step is accompanied by hints so that you feel confident and do not make mistakes in calculations.
The main advantage of this calculator is its accuracy and reliability. You can be sure of the results, because I have carefully checked each formula and taken into account all possible nuances. Using our calculator, you will be able to plan your finances with confidence and peace of mind.
Using this tool is easy and pleasant. You'll be able to see at a glance how different parameters affect your payments and choose the terms that are best for you. Use the FHA loan calculator and take the first step toward your new home with confidence in your financial abilities.
FHA calculator instructions
Filling out the FHA loan calculator form may seem complicated, but I will try to make the process as easy as possible for you. Follow these instructions step by step to get accurate results.
House Price field
Purpose: This field is intended to indicate the cost of the home you plan to buy.
How to fill out: Enter the value of the house in rubles. For example, if the house costs 3 million dollars, enter “3000000”.
Important: Keep in mind that the amount should be realistic and in line with your plans.
Field “Down payment”
Purpose: Indicate the percentage of the total cost of the home that you plan to contribute immediately.
How to fill out: Enter the number as a percentage. For example, if your down payment is 10%, enter “10”.
Important: The down payment affects the size of the monthly payments, so it is important to specify the exact value.
Credit term field
Purpose: Indicate how many years you are borrowing for.
How to fill out: Enter the number of years. For example, if you plan to repay the loan in 20 years, enter “20”.
Important: The longer the loan term, the lower the monthly payments, but the higher the total repayments.
Field “Interest rate”
Purpose: Indicate the interest rate at which you are borrowing.
How to fill out: Enter the number as a percentage. For example, if the interest rate is 5.5%, enter “5.5”.
Important: The interest rate affects the amount of payments, so it is important to specify the exact value.
Property tax field
Purpose: Indicate the percentage of the property tax levy.
How to fill out: Enter the number as a percentage. For example, if the tax is 1.5%, enter “1.5”.
Important: Property tax is a mandatory payment that needs to be factored into the calculations.
Home Insurance field
Purpose: Indicate the cost of your home insurance for the year.
How to fill out: Enter the amount in dollars. For example, if the annual insurance costs $20,000, enter “$20,000”.
Important: Make sure you enter the amount per year, not per month.
HOA Contribution field
Purpose: Indicate the annual fee for the services of a management company (HOA).
How to fill out: Enter the amount in dollars. For example, if the premium is $15,000 per year, enter “15,000”.
Important: This fee, too, needs to be factored in when calculating your total housing costs.
Field “FHA MIP”
Purpose: Indicate the amount of the initial and annual FHA MIP insurance premium.
How to fill out: Enter the percentage values. For example, if the initial installment is 1.75% and the annual installment is 0.85%, enter “1.75” and “0.85” respectively.
Important: These fees are mandatory for an FHA loan and affect the total cost of the loan.
Completion
After filling in all the fields, click the “Calculate” button to get the results. You will see the size of monthly payments, total amount of payments and other important financial indicators.
Important points
- Check the data: Make sure that all entered data is correct and corresponds to the real values.
- Take your time: Filling out the form requires attention to get accurate results.
- Counseling: If necessary, consult a financial advisor to properly assess your options.
By following these instructions, you can easily fill out the form and get accurate estimates for your future home.
Examples of using the FHA calculator
Use these examples to better understand how our FHA loan calculator works and how it can help you plan for your future home.
Buying your first home
Task: You want to buy your first home for $5 million dollars. You have 20% for the down payment, and you plan to take out a 15-year loan at 7% per annum. You need to find out what the monthly payments will be and the total amount of repayments.
Solution Steps:
- Enter the value of the house: $5,000,000 dollars.
- Enter down payment: 20% ($1,000,000).
- Enter the term of the loan: 15 years.
- Enter the interest rate: 7%.
Calculation results:
- Monthly payment: 42,992.85 dollars.
- Total payout amount: 7,738,713.00 dollars.
Application to practice: By knowing your monthly payment, you can assess your financial burden and decide if this loan option is right for you. The total amount of your payments will help you understand how much you will overpay over the life of the loan.
Moving to a new home with a smaller down payment
Task: You are planning a move and have found an $8 million dollar home. You only have 10% for a down payment and you want to take out a 20 year loan at 6% interest. You need to find out what the monthly payments will be and the total amount of repayments.
Solution Steps:
- Enter the value of the house: $8,000,000.
- Enter down payment: 10% ($800,000).
- Enter the term of the loan: 20 years.
- Enter the interest rate: 6%.
Calculation results:
- Monthly payment: $51,604.76.
- Total payout amount: 12,385,142.40 dollars.
Application to practice: The monthly payment will help you plan your budget with the new financial burden in mind. Total payments will give you an idea of the total cost of the loan over 20 years.
Assessment of taxes and insurance
Task: You want to find out how taxes and insurance will affect your monthly payments. You buy a house for 6 million dollars with a down payment of 15%, the loan term is 25 years, and the interest rate is 5%. Property taxes are 1.2% and insurance is $18,000 per year.
Solution Steps:
- Enter the value of the house: $6,000,000 dollars.
- Enter down payment: 15% ($900,000).
- Enter the term of the loan: 25 years.
- Enter the interest rate: 5%.
- Enter property tax: 1.2%.
- Enter the cost of insurance: $18,000 per year.
Calculation results:
- Monthly payment: $28,001.57.
- Total payout amount: 8,400,471.00 dollars.
- Property Tax: 72,000 dollars a year.
- Home Insurance: $18,000 a year.
Application to practice: You'll be able to accurately plan for all the costs associated with your home, including taxes and insurance, to avoid unexpected expenses.
Choosing between different loan terms
Task: You want to compare how different loan terms affect monthly payments and total payments. Consider a $4 million dollar home with a 25% down payment and an interest rate of 4.5%. You are comparing 10, 20 and 30 year loans.
Solution Steps:
- Enter the value of the house: $4,000,000 dollars.
- Enter down payment: 25% ($1,000,000).
- Enter the interest rate: 4.5%.
- Calculate for a loan term of 10 years:
- Monthly payment: $31,208.12.
- Total payout amount: 3,744,974.40 dollars.
- Calculate for a loan term of 20 years:
- Monthly payment: 20,250.35 dollars.
- Total payout amount: 4,860,084.00 dollars.
- Calculate for a loan term of 30 years:
- Monthly payment: $15,202.45.
- Total payout amount: 5,472,882.00 dollars.
Application to practice: These calculations will help you understand how the term of the loan affects your monthly payments and total repayments so you can choose the best option for your budget.
Planning for mortgage costs taking all factors into account
Task: You want to buy a house for 7 million dollars with a down payment of 20%, loan term - 25 years, interest rate - 5.5%. Property taxes are 1.8%, insurance is $25,000/year, HOA dues are $10,000/year.
Solution Steps:
- Enter the value of the house: $7,000,000 dollars.
- Enter down payment: 20% ($1,400,000).
- Enter the term of the loan: 25 years.
- Enter the interest rate: 5.5%.
- Enter property tax: 1.8%.
- Enter the cost of insurance: $25,000 per year.
- Enter the HOA fee: $10,000 per year.
Calculation results:
- Monthly payment: 33,334.76 dollars.
- Total payout amount: 10,000,428.00 dollars.
- Property Tax: $126,000 a year.
- Home Insurance: $25,000 a year.
- HOA Contribution: $10,000 a year.
Application to practice: A complete calculation of all costs will allow you to plan your budget and account for all possible costs associated with buying and maintaining a home.
Table of important parameters and their impact on mortgage payments
| Parameter | Description | How to fill out | Impact on the bottom line |
|---|---|---|---|
| The price of a house | The cost of the home you plan to purchase | Enter the full dollar value of the home | An increase in the price of the home leads to an increase in monthly payments and total payments |
| Initial payment | The percentage of the home's value that you contribute at once | Enter the percentage of the home's value | Increasing the down payment reduces the size of the loan and monthly payments |
| Loan term | Period of time for which the loan is taken | Enter the number of years | Increasing the term of the loan lowers the monthly payments but increases the total repayments |
| Interest rate | The annual interest rate at which you are taking out the loan | Enter the percentage | Increasing the interest rate increases the monthly payments and the total amount of payments |
| Property tax | Property tax percentage | Enter the percentage | The tax increase raises annual and monthly housing maintenance costs |
| Home insurance | The annual cost of insuring your home | Enter the dollar amount | Increasing the cost of insurance increases annual and monthly home maintenance costs |
| HOA dues | Annual fee for services of a management company (HOA) | Enter the dollar amount | The increase in the fee increases the annual and monthly housing maintenance costs |
| Initial FHA MIP | Percentage of initial FHA insurance premium | Enter the percentage | Increasing the MIP down payment increases the initial cost of the loan |
| Annual FHA MIP | Percentage of annual FHA insurance premium | Enter the percentage | Increasing the annual MIP premium increases the annual and monthly maintenance costs of the loan |
| Length of annual FHA MIP | The time period for which the annual FHA insurance premium applies | Select an option from the drop-down list | Determines the duration of annual installments, affecting total benefits |
Table of approximate monthly payments for different loan parameters
| House price ($) | Initial payment (%) | Loan term (years) | Interest rate (%) | Monthly payment ($) |
|---|---|---|---|---|
| 5,000,000 | 20 | 15 | 7 | 42,992.85 |
| 8,000,000 | 10 | 20 | 6 | 51,604.76 |
| 6,000,000 | 15 | 25 | 5 | 28,001.57 |
| 4,000,000 | 25 | 10 | 4.5 | 31,208.12 |
| 7,000,000 | 20 | 25 | 5.5 | 33,334.76 |
Table of calculation of additional housing maintenance costs
| Parameter | Meaning | Annual expense ($) | Monthly expense ($) |
|---|---|---|---|
| Property tax | 1.5% of the value of the house | 75,000 | 6,250 |
| Home insurance | $18,000 a year. | 18,000 | 1,500 |
| HOA dues | $10,000 a year. | 10,000 | 833.33 |
| Annual FHA MIP | 0.85% of the outstanding balance | 25,500 | 2,125 |
Table of comparison of credit terms
| Parameter | Variant 1 | Variant 2 | Variant 3 |
|---|---|---|---|
| House price ($) | 6,000,000 | 8,000,000 | 4,000,000 |
| Initial payment (%) | 20 | 10 | 25 |
| Loan term (years) | 20 | 25 | 15 |
| Interest rate (%) | 5 | 6.5 | 4.5 |
| Monthly payment ($) | 31,721.50 | 51,140.22 | 31,208.12 |
| Total amount of payments ($) | 7,613,160 | 15,342,066 | 5,617,461 |
These tables will help you better understand how to use the FHA loan calculator for different scenarios and how different parameters affect the final results.
What is FHA?
FHA (Federal Housing Administration) - is the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA was created in 1934 to stimulate and support the U.S. housing market by making home buying more affordable for citizens, especially those who may have difficulty obtaining traditional mortgages.
FHA's basic functions and features:
Mortgage insurance: FHA insures mortgage loans, which reduces risk for lenders and allows them to offer more favorable terms to borrowers, including lower interest rates and down payments.
Accessibility: FHA loans are often used by people who are first-time homebuyers and those who do not have a high credit score or a significant down payment.
Low down payments: FHA loans require a minimum down payment, which can be as low as 3.5% of the home's value.
Flexible credit history requirements: Unlike traditional loans, FHA loans do not require a perfect credit history, making them more accessible to more people.
Refinancing programs: FHA offers a variety of refinance programs that can help borrowers lower their monthly payments or get better loan terms.
In general, FHA plays an important role in making housing affordable to a wide range of people in the U.S. by helping them purchase their own homes and improve their housing conditions.
