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Different loan programs mean dramatically different payments. Compare all options to find your cheapest choice.

Payment Comparison Calculator

FHA loans have helped millions of Americans achieve homeownership with down payments as low as 3.5 percent and more flexible credit requirements than conventional mortgages. However, FHA loans charge mortgage insurance premiums (MIP) that affect your bottom line. Whether an FHA or conventional loan makes more financial sense depends on your down payment, credit score, loan amount, and how long you plan to stay in the home. Our FHA payment comparison calculator lets you run side-by-side scenarios to see the actual dollar difference between loan programs before you apply.


 Check this box to copy all inputs from Scenario A to Scenario B
Loan Scenario A
P&I Payment:
$0.00
Monthly Taxes:
$0.00
Monthly Insurance:
$0.00
Monthly PMI:
$0.00
Total Monthly:
$0.00
Total Cost
Down Payment:
$0.00
Points Cost:
$0.00
Total Cost:
$0.00
Loan Scenario B
P&I Payment:
$0.00
Monthly Taxes:
$0.00
Monthly Insurance:
$0.00
Monthly PMI:
$0.00
Total Monthly:
$0.00
Total Cost
Down Payment:
$0.00
Points Cost:
$0.00
Total Cost:
$0.00
Difference: $0.00

FHA Mortgage Insurance Premiums Explained

FHA Mortgage Insurance Premiums Explained

The most significant difference between FHA and conventional loans is mortgage insurance. FHA requires an upfront mortgage insurance premium (UFMIP) of 1.75 percent of your base loan amount, paid at closing or rolled into your loan. You also pay an annual MIP that varies based on your down payment and loan term. For loans with less than 10 percent down, you'll pay MIP for the life of the loan. For loans with 10 percent or more down, MIP typically drops off after 11 years.

Conventional loans require private mortgage insurance (PMI) only if you put down less than 20 percent, and PMI drops off once you reach 20 percent equity. The MIP and PMI rates depend on your credit score and down payment percentage. Using the calculator, you can see exactly how much MIP or PMI you'll pay monthly and understand when or if it will disappear.

Credit Score Impact on FHA Costs

FHA loans accept credit scores as low as 580 with a 3.5 percent down payment, though you may pay higher mortgage insurance rates if your credit is below 620. Conventional loans typically require a credit score of at least 620 and charge PMI rates that improve significantly with scores above 740. The calculator includes credit score tiers so you can see how your actual score affects your monthly payment under different loan programs. A borrower with a 620 credit score might find that an FHA loan is more affordable than a conventional loan with high PMI, or vice versa depending on down payment.

Down Payment Flexibility

FHA's 3.5 percent minimum down payment makes homeownership accessible to savers without six months of reserves sitting idle. Conventional loans require 3 percent down for first-time buyers but typically ask for two months of reserves in liquid savings. USDA loans require zero down for eligible rural borrowers. The calculator lets you test different down payment scenarios to understand the true cost difference. Often, putting down 5 or 10 percent instead of 3.5 percent on an FHA loan can reduce your monthly MIP and improve your overall affordability.

Interest Rates and Total Monthly Cost

Interest rates vary by program, credit score, and market conditions. Fixed-rate FHA loans typically have competitive rates, sometimes lower than conventional loans because the government backs them. However, the addition of MIP can make your total monthly payment higher than a conventional loan with the same interest rate. The calculator accounts for these differences so you see the complete picture, not just the interest rate.

Loan Term Options

FHA loans are available in 15, 20, 25, and 30-year terms. Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but cost more over time. Use the calculator to compare how FHA's 30-year option compares to a conventional 30-year loan, and see how a 15-year FHA mortgage stacks up against a 15-year conventional mortgage. Many borrowers are surprised to find that a 20 or 25-year FHA loan offers a good middle ground.

Making Your Decision

FHA loans are an excellent choice for borrowers with limited down payment savings and good income stability. Conventional loans may be better if you have a larger down payment and excellent credit. The calculator removes the guesswork and lets you decide based on real numbers specific to your situation.