FHA vs Conventional Loan Calculator
The cost of each loan over the years you expect to keep it, counting mortgage insurance and fees. Enter your own numbers; nothing is filled in for you.
Cost of borrowing
Enter the price, both rates and how long you'll keep the loan to compare.
Estimate only, not an offer.
How This Is Worked Out
- Both loans use the same price, down payment and term, at the rates you enter.
- FHA adds a 1.75% upfront premium to the loan, plus a yearly premium from HUD's table, worked out each year on the scheduled balance. With 10% or more down it lasts 11 years; with less, it lasts for the life of the loan.
- The conventional loan adds private mortgage insurance at the yearly rate you enter when you put down less than 20%. It ends when the balance is scheduled to reach 78% of the price, or halfway through the loan.
- Cost of borrowing is the interest, mortgage insurance and upfront fees you'd pay over the years you keep the loan. Taxes and homeowners insurance are left out because they're the same either way.
- Lenders price each loan differently, and FHA and conventional loans have their own credit and property rules. This compares cost only.