How Is My House Payment Calculated? -

How Is My House Payment Calculated?

The formula for calculating your monthly payment:

Your house payment, is more than your house payment. It’s a combination of several fees, taxes, insurance, and interest.

While there are factors that will adjust your payment, and different locations or loan types have slightly different requirements, the example shown below details what goes into a typical FHA loan house payment.

FHA $200,000 home purchase payment scenario:


1) 3.5% down payment of $7,000.

2) 4.5% interest rate.

3) Loan term of 30 years.

4) Property tax rate of 2.4%.

5) One-time up-front MIP $3,378

6) No monthly HOA dues.

Monthly payment of $1,687

  • $978 principle and interest a.k.a. P.I.
  • $100 hazard insurance (amount is variable vary by home)
  • $209.00 mortgage insurance (base loan amt. x (1.3% for 30 yr or 0.45% for 15 yr)/12
  • $400 county / school taxes (amount is variable)

$1,687 includes all the above added together to make up your total monthly house payment. This is just an example and the actual amount may vary by style of home, age of home, the location of the home, the distance between the home and the nearest fire department and police department, the county tax rate, the school tax rate, your credit score, if your community has an Home Owners Association and much more.

Disclaimer: The figures above are based upon current FHA program guidelines. FHA requires a 3.5% down payment as well as monthly and annual mortgage insurance in many cases. Other loan programs are available. Calculations are believed to be accurate, yet are not guaranteed.

Are you ready to move forward with a purchase or refinance? Please give us a call at 888-810-1459 and let us help you secure financing for the purchase of a new home or save you money on the refinance of your existing home. Be sure to ask your loan officer about our closing costs incentives and our low rate guarantee!

Disclaimer: The information contained in this article has been prepared by an independent third party and is distributed to consumers for educational purposes only. The information is considered reliable but not guaranteed to be accurate. The opinions expressed in this article do not represent the opinions of Skyline Home Loans. Please consult with a licensed loan officer for expert advice regarding financing or refinancing a home.