FHA Loan Calculator
The FHA Mortgage Calculator lets you know how much you need to pay monthly according to your loan amount. You will also be able to estimate your home financing through calculators. To find out the estimated results, you will first need to add value to your home. Then you will need downpayment and interest rate. You have to choose how many years you are interested in the loan.
Based on the FHA loan calculator, it will make an estimated payment. With estimated monthly payments, you can find out your desired details.
The calculator’s “monthly” option is useful for estimating the monthly payment you want to make for your loan. Select “Total” to know how much you want to pay for your downpayment and loan life.
Above all, based on the monthly payments, you can find out about your affordability.
How does FHA loan calculator help?
FHA loan calculator will answer your biggest question is how much you can afford. The calculator will answer all your payment questions.
- How long can you stay at home?
The calculator lets you determine if you should choose a fixed rate of 30 years. When you choose a long-term loan, it will lower your monthly payments, but your interest rate will be much higher. If you choose a fixed rate for 15 years, it will lower your interest rate but increase your monthly payment.
- Is adjustable-rate mortgage the best option?
Adjustable rate mortgages are the best option for those who are planning to stay at home for only a few years. This type of mortgage offers you low interest rates that last for several years. These annual interest rates change after a certain year.
- Should you buy an expensive home?
The FHA mortgage calculator helps you estimate the value of a home. With a calculator, you can learn about monthly payments which will give you confidence about your affordability. Then you will be able to choose the right house at the right price for your income.
- How much is the perfect down payment?
If your downpayment is less than 3.5% then your monthly payment will be smaller. If your downpayment is 10% or more then you have to pay mortgage insurance premium which is for 11 years. However, you can cancel the insurance by refinancing the conventional mortgage.
Expenses required for monthly FHA mortgage payments
You can calculate the amount owed on the loan. You need to deduct your downpayment from the borrowed money. For example, if your home is worth $ 250,000, a 10% down payment would be $ 25,000. Then the total value of the loan will be $ 225,000.
Expenses on money borrowed from the lender which is expressed as annual expenses.
- Property taxes
A portion of the annual tax payments on your home and property. This money is paid through Escrow account.
- FHA mortgage insurance
When closing a loan, you will need to pay an advance premium charge which is included in the FHA loan.
- Homeowners association fee
If the home you purchased is controlled by a homeownership company, you will need to pay an annual fee.
Can FHA mortgage payments be reduced?
If you think FHA mortgage payment is expensive, here are some ways to reduce it.
Extend the loan term: If your home is your primary residence, you do not plan to relocate in the future, then extend the term of your loan.The loan can last from 15 to 30 years, it will reduce your monthly payments. But know that you have to pay interest rate for a long time.
Buy a less expensive home: If you buy a less expensive house then the amount of loan will be less. The lower the loan amount, the lower the repayment amount. You can improve your home in the future.
Reduce the term of mortgage insurance premium: Refrain from paying excessive mortgage insurance premium. Make a 10 percent down payment to refrain from providing mortgage insurance. In case of 10% or more downpayment, you have to pay mortgage insurance premium for up to 11 years.
Better interest rate: Shop from three to five lenders to get the best interest rates. Then consider lenders to take advantage from the loan.