The FHA mortgage calculator estimates your monthly payment by combining principal, interest, FHA mortgage insurance premium (MIP), property taxes, and homeowners insurance. It factors in the upfront MIP of 1.75% of the loan amount and the annual MIP that varies based on your loan term and loan-to-value ratio. This gives you a comprehensive picture of your true monthly housing cost.

FHA mortgage insurance includes an upfront premium of 1.75% of your loan amount, which is typically financed into the loan, and an annual premium of 0.55% for most borrowers. The annual premium is divided by 12 and added to your monthly payment. For a $300,000 loan, this adds approximately $137.50 per month to your payment.

For FHA loans originated after June 2013 with less than 10% down, MIP lasts for the entire loan term. If you put 10% or more down, MIP can be removed after 11 years. Many borrowers choose to refinance into a conventional loan once they reach 20% equity to eliminate mortgage insurance entirely.

A lower credit score does not change your FHA MIP rate, but it significantly affects your interest rate. Borrowers with scores of 580-619 may see rates 0.5-1.0% higher than those with 740+ scores. On a $250,000 loan, a 1% rate difference can add over $150 per month to your payment.

Yes, the NMHL FHA calculator includes estimated property taxes and homeowners insurance in your total monthly payment. These estimates are based on national averages but can be customized with your specific tax rate and insurance quotes. Including these costs gives you a realistic picture of your total housing expense, not just the mortgage portion.