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FHA vs Conventional Mortgage Calculator

Easily compare FHA vs conventional mortgage costs, including MIP and PMI, to find the best option for your financial needs.

Loans & Mortgage · Reviewed by FreeCalculators Editorial · Updated 2026-09-01

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How it works

The FHA vs Conventional Mortgage Calculator helps you evaluate the costs associated with two types of mortgages: FHA loans and conventional loans. The calculator considers key factors such as home price, down payment percentage, interest rates, and mortgage insurance premiums (MIP and PMI). For example, if you input a home price of $350,000 with a 3.5% FHA down payment and a 5% conventional down payment, the calculator will compute the monthly payments and total costs over 30 years. Using the default FHA interest rate of 6.5% and a conventional rate of 7%, the FHA monthly payment would be approximately $2,200, while the conventional payment would be around $2,329. Additionally, the FHA loan includes an upfront MIP, which is calculated as a percentage of the loan amount, affecting the overall cost. This tool enables you to make informed decisions by comparing the total costs and monthly payments of both mortgage options, ensuring you choose the best fit for your financial situation.

Tips

  • Always compare the total costs of both FHA and conventional loans over the full term, not just the monthly payments.
  • Consider your credit score, as it significantly impacts your interest rates for conventional loans.
  • Factor in additional costs such as property taxes and homeowners insurance when calculating your total monthly expenses.
  • If possible, make a larger down payment to reduce your monthly payments and avoid PMI with a conventional loan.

Frequently asked questions

What is the upfront MIP for FHA loans?
The upfront MIP for FHA loans is typically 1.75% of the loan amount.
How does my credit score affect my mortgage options?
A credit score of 700 generally qualifies you for better interest rates on conventional loans, potentially saving you thousands over the loan term.
Can I remove PMI from a conventional loan?
Yes, PMI can be removed once your loan-to-value ratio reaches 80%, which usually occurs after you pay down enough principal.
What are the typical interest rates for FHA and conventional loans?
As of now, FHA loans have an average interest rate around 6.5%, while conventional loans are approximately 7%.