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FHA Loan Calculator
|FHA Loan Calculator helps you assess the cost of buying a home under an FHA assisted mortgage program. The Federal Housing Administration, which functions under the aegis of the United States Department of Housing and Urban Development (HUD), provides insurance coverage for the loan amount you would get from a lender approved by it.
The lenders may have their own criteria on top of the FHA underwriting guidelines, thus making it more or less difficult to have a financing solution from them. It is always a better idea to shop around and find the lender that offers you the most convenient terms.
The first thing you would probably need is a calculator that can help you determine the various costs involved in the underwriting process. You may also need a calculator to know the complete amortization schedule with applicable interest rates and required payments each month.
It is to be noted that with FHA loans, the amount of mortgage insurance premiums becomes an important factor as this is a pretty substantial sum of money. While you can’t do much to lower the MIP, you can certainly make your payment and closing cost much easier to afford by creating a fine balance between your housing needs and available lending opportunities.
FHA Loan Calculator with PMI and Taxes
PMI refers to Private Mortgage Insurance, which is applicable when you put down a sum of money which is less than 20% of home value under a conventional loan system. The PMI requirements are fulfilled by a third-party insurance company. However, when you opt for an FHA loan, you will have to pay a bit higher sum of money in insurance premiums, often referred to as MIP (Mortgage Insurance Premium).
You are required to pay two kinds of premiums. The up-front premium, which is required to be paid at closing, is equal to 2.25 percent of the purchase price in most cases. The annual premiums are rolled into your monthly payments. Thus the payment calculator you will use must take into account this factor to give you a more accurate figure.
Another factor that may affect your monthly payment quite significantly is the amount of property taxes applicable to you as a homeowner. The calculator must also take into account your tax liability in order to help you estimate correctly about your affordability. Use the FHA loan calculator with PMI and Taxes to have a correct idea of your monthly payment requirements.
Moreover, if you are not sure of how much you can afford to buy a home there exists another calculator that can compute the amount you can easily afford given the monthly income, expenditure and tax and other liabilities. This calculator is usually referred to as How Much Can I Afford.
Visit the website of the FHA lender of your choice and find an appropriate calculator to get the estimates.