We recently revised our FHA mortgage payment calculator on the right side of the page. This FHA mortgage payment calculator figures the principle, loan interest, taxes, home insurance and FHA mortgage insurance “PMI” costs.
Home buyers will want to adjust the taxes and home insurance as needed, as each home will be different. You can look up annual taxes at the county tax site, or other real estate site like Zillow or Trulia. Annual home owners insurance estimates can be obtained by contacting any trusted insurance company.
FHA monthly mortgage insurance is adjusted based on the down payment, loan amount, term (30 or 15 year fixed) and loan to value. The majority of FHA borrowers choose a 30 year fixed term with a 3.5% down payment. In this case, the monthly mortgage insurance factor would be .80%. The one-time upfront (UPMIP) would be 1.75% – this is commonly added into the buyer’s loan amount. This is great especially for buyers with lower credit scores, as mortgage insurance for conventional loans ( 95%+ financing) commonly requires a 680+ credit score even be able to obtain mortgage insurance.
Borrowers that put down 5% or more will see their MI costs even lower. Keep in mind FHA reduced mortgage insurance premiums a few years ago. Not only is this good for new home buyers entering the housing market in 2020, but it could also help current FHA home owners that obtained their FHA loan in the years past. Please contact us and see if the new lower FHA mortgage insurance costs could help reduce your monthly mortgage payment. The FHA streamline refinance makes the process easy with no appraisal and little paper work.
Please see the new FHA monthly mortgage insurance chart below: yellow section reflects 2020.
FHA Loans Greater Than 15 Year Term
|Base Loan Amt.||LTV||Annual MIP|
|≤$625,500||≤95.00%||80 bps (0.80%)|
|≤$625,500||>95.00%||85 bps (0.85%)|
|>$625,500||≤95.00%||100 bps (1.00%)|
|>$625,500||>95.00%||105 bps (1.05%)|
Buyers that have questions are encouraged to contact us by calling 800-743-7556 or by submitting the Info Request form on your screen. We have an FHA loan specialist standing by 7 days a week to assist you.