The easiest way to calculate mortgage payments for FHA financing is to use our free online FHA mortgage loan estimator.

You can also examine your official loan documents to determine your mortgage payments. Your lender will provide a disclosure that calculates the costs associated with your loan.

The Truth in Lending Act (TILA) requires that paperwork list the annual interest percentage rate (APR), finance charges, and any fees associated with the loan, including Private Mortgage Insurance (PMI) costs.

The TILA will also itemize the amount of your FHA mortgage payments for each month of the loan term.

Before you sign your final loan documents, your lender is also required under the Real Estate Settlement Procedures Act (RESPA) to give you a new (or updated) loan estimate that also details your FHA mortgage payments.

If you haven’t already contacted a lender, you can apply for a loan with me and get your estimate.

Your down payment isn’t limited for an FHA mortgage, but your credit score determines the amount required when you plan to put down less than 10%.

Buyers with credit scores of 580 and above must put a minimum of 3.5% down.

Homebuyers with scores between 500 and 579 must put a minimum of 10% down.

There are several ways to lower your FHA mortgage payment, including:

• Pay an additional lump sum on your loan, and then ask the lender to recast your mortgage.
• Be approved for an FHA Streamline Refinance to lower your interest rate and extend the loan term.
• Eliminate the Mortgage Insurance Premium (MIP), when your loan allows that option.

You cannot pay your own property taxes with an FHA loan. Your lender must set up a separate escrow account to collect your funds to pay your property tax bill on your behalf.

Loans backed by the Federal Housing Administration (FHA) use Mortgage Insurance Premiums (MIP). Non-FHA loans use Private Mortgage Insurance (PMI).

Both are designed to protect mortgage companies if a borrower defaults.

FHA mortgage insurance (MIP) is based on several factors, including your creditworthiness, type and amount of your loan, your down payment amount, and your loan-to-value (LTV) ratio. 

The fee range is typically between 0.3% and 1.5%, but it could be significantly higher.

There are two methods to remove FHA mortgage insurance on the loan. The first is to refinance the loan by using a conventional mortgage.

Unless you put 20% down on your new loan, however, you’ll be swapping MIP for PMI. That exchange may not provide any savings.

The second way for some borrowers is to hold the FHA loan long enough for the agency to remove the MIP payments.

This generally happens when the loan-to-value reaches 78%, or with the MIP cancellation on the eleventh year anniversary of the home purchase for some FHA loan borrowers.

FHA mortgage requirements include having borrowers make MIP payments for the life of the loan when the mortgage originated before January 2001.