FHA vs Conventional Loan Calculator

FHA mortgage insurance premium, MIP, usually cannot be cancelled once your down payment is under 10%, it runs for the entire life of the loan. Conventional private mortgage insurance, PMI, only applies below 20% down and cancels automatically once you reach 20% equity, which this calculator estimates for you.

FHA loans accept lower credit scores and a smaller minimum down payment than most conventional programs, which makes homeownership reachable sooner for buyers still building credit. The longer lasting insurance is a real tradeoff for that lower bar to qualify, not a hidden cost.

Yes, refinancing into a conventional loan once you have built enough equity and improved your credit is a common way to end FHA MIP earlier than the loan term would otherwise allow. That refinance comes with its own closing costs and rate, worth running through the refinance calculators here before deciding.

Substantially. At 20% down, conventional loans have no mortgage insurance at all, which usually makes them the cheaper option outright if your credit qualifies. FHA loans still charge mortgage insurance even at 20% down or more, so the gap between the two options narrows or reverses as the down payment grows.

Often, but not always, FHA rates tend to run slightly lower since the loan is government insured, but the total monthly payment still depends heavily on the mortgage insurance cost layered on top. This calculator lets you enter each rate separately so the comparison reflects real current offers rather than an assumption.

You can do either. Financing it into the loan is more common since it needs no extra cash at closing, but it does raise your loan amount and monthly payment slightly. Paying it in cash keeps your loan amount and monthly payment lower at the cost of that much more upfront. This calculator lets you pick either one.