Conventional vs. FHA Calculator
compare your options
California Mortgage Finder’s conventional vs. FHA mortgage calculator helps homebuyers and homeowners compare conventional and FHA loan options for both home purchases and refinances.
Using the toggle at the top of the calculator, you can switch between Purchase and Refinance scenarios to see how interest rates, costs, monthly payments, mortgage insurance, and loan structures differ between the two programs.
This calculator is designed for borrowers deciding between conventional and FHA loans based on their anticipated transaction, buying a home, or refinancing an existing mortgage.
Questions? Contact KevinInputs
Home and Loan Basics
Conventional Assumptions
PMI estimate: loan x PMI% / 12. Real PMI varies by credit, LTV, and insurer.
FHA Assumptions
FHA includes financed upfront MIP and monthly MIP using: base loan x annual MIP% / 12.
Results
Conventional breakdown-
| Principal and interest | - |
| PMI | - |
| Property taxes | - |
| Insurance | - |
| HOA | - |
| Total | - |
FHA breakdown-
| Principal and interest | - |
| Monthly MIP | - |
| Property taxes | - |
| Insurance | - |
| HOA | - |
| Total | - |
Payment composition
Quick note
How This Calculator Works
Conventional vs FHA mortgage calculator inputs explained
This calculator compares conventional and FHA loan scenarios for both purchase and refinance situations using standard mortgage formulas and the following inputs:
- Scenario Toggle – Choose between Purchase or Refinance
- Home Value / Purchase Price – Property value or purchase price
- Down Payment (Purchase) – Amount paid upfront toward the purchase
- Current Loan Balance (Refinance) – Remaining balance on your mortgage
- Interest Rate (Conventional) – Estimated conventional loan rate
- Interest Rate (FHA) – Estimated FHA loan rate
- Loan Term – Commonly 30 years
- PMI (Conventional) – Estimated private mortgage insurance when applicable
- FHA Mortgage Insurance (MIP) – FHA upfront and annual insurance
- Property Taxes – Estimated annual property taxes
- Homeowners Insurance – Estimated annual insurance cost
- HOA Fees (if applicable) – Monthly association dues
Results update automatically as inputs change, allowing you to compare both programs side by side.
Understanding Your Results
What the conventional vs FHA calculator results mean
After entering your information, the calculator provides estimates for both conventional and FHA loans, including:
- Monthly Principal & Interest – Loan payment for each option
- Mortgage Insurance – PMI for conventional loans or MIP for FHA loans
- Upfront FHA MIP (Financed) – Included in FHA loan balance when applicable
- Property Taxes & Insurance – Monthly escrow estimates
- HOA Fees – Monthly association dues
- Total Monthly Payment – Estimated all-in housing cost
Use the Purchase / Refinance toggle to see how results change based on your situation.
When Should You Use a Conventional vs FHA Calculator?
When this calculator is useful
This conventional vs FHA calculator is especially helpful if you are:
- Buying a home and choosing between loan programs
- Refinancing and comparing FHA vs conventional options
- Evaluating mortgage insurance costs in each scenario
- Planning to refinance out of FHA mortgage insurance later
- Comparing refinance scenarios before applying
- Unsure which program best fits your credit profile or down payment
Purchase and Refinance Scenarios
Example of a purchase comparison
Home value: $750,000
Down payment: 5% ($37,500)
Conventional rate: 5.75%
FHA rate: 5.25%
Loan term: 30 years
In purchase mode, the calculator shows how FHA may offer a lower interest rate, while conventional loans may reduce long-term mortgage insurance costs since you’re typically able to remove your mortgage insurance once your loan-to-value ratio moves below an 80% loan-to-value ratio.
Example of a refinance comparison
Home value: $750,000
Current loan balance: $620,000
Conventional refinance rate: 5.75%
FHA refinance rate: 5.25%
Loan term: 30 years
In refinance mode, the calculator compares changes in payments and mortgage insurance costs for each loan program.
Important Assumptions & Limitations
Conventional vs FHA calculator assumptions
This conventional vs FHA calculator provides estimates based on common California assumptions. It does not account for:
- Credit score-based pricing adjustments
- FHA loan limits by county
- Conventional PMI rate variations by borrower profile
- Closing costs or prepaid expenses
- Refinancing out of FHA mortgage insurance over time
Actual loan eligibility and costs depend on the lender’s underwriting and program guidelines.
Frequently Asked Questions
Conventional vs FHA mortgage calculator FAQs
Can a borrower qualify for both a conventional and an FHA loan?
Yes. Many buyers qualify for both loan types at the same time. This calculator is designed to help compare costs and payments between conventional and FHA loans once basic eligibility is met.
Why does an FHA loan sometimes show a lower interest rate but a higher monthly payment?
FHA loans often offer competitive interest rates, but they include both upfront and ongoing mortgage insurance. That insurance can increase the total monthly payment even if the interest rate is lower.
Does the calculator assume FHA mortgage insurance lasts for the life of the loan?
Yes. The calculator reflects standard FHA rules, which generally require mortgage insurance for the life of the loan unless refinanced into a different program.
Why might a conventional loan become cheaper over time?
Conventional loans with PMI allow mortgage insurance to be removed once sufficient equity is reached. Over time, this can reduce the monthly payment and total loan cost compared to FHA loans.
Can this calculator help decide whether refinancing out of FHA makes sense later?
Yes. While this tool compares programs at a point in time, it can help highlight scenarios where starting with FHA and later refinancing into a conventional loan might reduce long-term costs.
Does the calculator consider credit score differences between loan programs?
No. The calculator assumes estimated rates and insurance costs. Actual pricing for conventional loans can vary significantly based on credit score and loan-to-value.
Why would a buyer choose FHA even if they qualify for conventional?
Some buyers choose FHA due to lower down payment requirements, more flexible credit guidelines, or short-term affordability needs. This calculator helps compare costs but does not recommend one program over another.
Are closing costs included in the comparison?
No. Closing costs and prepaid items vary by lender and location and are not included. The calculator focuses on monthly payment and insurance differences.
How should this calculator be used with other tools?
This calculator works best as a program comparison tool. After choosing a direction, use the standalone FHA or purchase mortgage calculators to model detailed scenarios.
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