Fha Loan And Closing Cost Calculator

When you’re in the market for a home and considering an FHA (Federal Housing Administration) loan, it’s essential to understand how your mortgage payments will affect your budget. The FHA Loan and Closing Cost Calculator can help you calculate your monthly mortgage payments with ease. In this article, we will explain how this calculator works and how you can use it effectively.


The FHA Loan and Closing Cost Calculator use the following formula to calculate the monthly mortgage payment:

M = P[r(1+r)^n]/[(1+r)^n–1]


  • M represents the monthly payment.
  • P is the loan amount.
  • r is the monthly interest rate (annual rate divided by 12 months).
  • n is the total number of monthly payments (loan term in years multiplied by 12).

How to Use

  1. Input the loan amount into the “Loan Amount” field.
  2. Enter the annual interest rate as a percentage in the “Interest Rate” field.
  3. Specify the loan term in years in the “Loan Term” field.
  4. Click the “Calculate” button to see your estimated monthly mortgage payment.

The calculated monthly payment will appear in the “Monthly Payment” field.


Let’s say you’re taking out an FHA loan for $200,000 with an annual interest rate of 4.5% and a loan term of 30 years. Here’s how you would use the calculator:

  • Loan Amount: $200,000
  • Interest Rate: 4.5%
  • Loan Term: 30 years

After clicking “Calculate,” the calculator will display your estimated monthly mortgage payment.


  1. What is an FHA loan?
    • An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make homeownership more accessible to low and moderate-income individuals.
  2. What are closing costs?
    • Closing costs are fees associated with finalizing a real estate transaction. They include things like appraisal fees, title insurance, and attorney fees.
  3. Is mortgage insurance required for FHA loans?
    • Yes, FHA loans require mortgage insurance, both an upfront premium and annual premiums, to protect the lender in case the borrower defaults.
  4. Can I use this calculator for refinancing an FHA loan?
    • Yes, you can use this calculator to estimate your monthly payments for a refinance.
  5. Are FHA loans only for first-time homebuyers?
    • No, FHA loans are available to both first-time and repeat homebuyers.
  6. What credit score is needed for an FHA loan?
    • Typically, a minimum credit score of 580 is required for an FHA loan with a 3.5% down payment. However, some lenders may have higher requirements.
  7. Can I include closing costs in my FHA loan?
    • Yes, it’s possible to include closing costs in your FHA loan, but this may affect your loan-to-value ratio and mortgage insurance premiums.
  8. What is the maximum loan amount for an FHA loan?
    • The maximum loan amount for an FHA loan varies by location and is adjusted annually. You can check the FHA website for the current limits.
  9. How do I qualify for an FHA loan?
    • To qualify for an FHA loan, you’ll need to meet certain credit and income requirements. It’s advisable to speak with an FHA-approved lender for specific eligibility criteria.
  10. What is the difference between an FHA loan and a conventional loan?
    • FHA loans are insured by the government and typically have more lenient credit and down payment requirements compared to conventional loans. Conventional loans are not insured by any government agency.


The FHA Loan and Closing Cost Calculator is a valuable tool for anyone considering an FHA loan for their home purchase or refinance. By using this calculator, you can estimate your monthly mortgage payments and make informed decisions about your financial future. Remember to consult with a mortgage professional for personalized advice and to explore all your options when it comes to FHA loans and closing costs.

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