4 Tips on Figuring Your FHA Mortgage Payments

Your FHA mortgage payment is usually one of the most important factors in your loan. When you work with the FHA for your mortgage needs, you will be presented with several benefits compared to other lenders. You will have to come up with a lower down payment, be subject to easier credit guidelines, and have a government-insured loan. Even with all of these benefits, you will want to try and calculate your mortgage payment before you sign up. Here are a few tips to figure your FHA mortgage payment.

1. Find the Going Interest Rate

The first thing that you will want to do is figure out what the interest rate is in the market. With an FHA loan, you will usually get a very good rate. You could find this online in a few moments in most cases. 

2. Calculate Finance Amount

The down payment with most FHA loans is about 3.5%. Take this amount off of the purchase price of the home you want to buy and this is the amount that you will be financing. 

3. Mortgage Calculator

Use an online mortgage calculator to calculate the payment with the values that you have already located. 

4. Add for MIP

FHA charges a mortgage insurance premium payment onto your monthly payment that is equal to .55%  APR of the value of the loan.