What Would My Mortgage Payment be with an FHA Loan?

What do home borrowers love about FHA loans? First, they have low down payment requirements and are very lenient on credit scores and employment history compared to conventional loans.

If you want to know if you can buy your new Texas home with an FHA loan, you can use an FHA loan calculator for Texas.

FHA Loan Calculator Terms Explained 

If you are new to home buying and want to know all the costs associated with homeownership, you’ve come to the right place.

You’re not just paying for the loan principal and interest when you pay your loan. Other costs include property taxes, homeowner’s insurance, and others.

An FHA mortgage calculator gives you an idea of your “true” payment when all other fees are included. 

Knowing this will help determine how much house you can afford with an FHA loan.

Here’s a list of some of the terms you need to familiarize yourself with:

Loan Term

Your loan term refers to the fixed amount of time you have to pay off your FHA loan. Many Americans choose a 30-year fixed-rate loan, but there are also 15-year terms available if you want to pay off your loan sooner.

Down Payment

Your down payment is the amount you pay upfront toward your home purchase. As we mentioned, many borrowers love FHA loans for their low down payment requirements of 3.5%. To lower your costs, your down payment can come from a gift or down payment assistance program.

You can use an FHA down payment calculator to know how much you need to put down for your loan.

Interest Rate

Mortgage lenders charge interest as a cost of borrowing. Interest is computed as a percentage of your loan amount. Let’s say your loan amount is $200,000, and your interest rate is 3% yearly. Your interest payment is $6,000 for that year.

Principal and Interest

This amount goes toward your loan balance and interest due to your lender each month. You would pay the same amount for the life of the loan if you applied for a fixed-rate loan.

Property Tax

You pay a certain amount per year to your county or municipality. The cost is split into 12 installments and is collected and paid by your lender to avoid the seizure of your property due to unpaid taxes.

Are you ready to get started with your FHA loan?

Do you plan on qualifying for an FHA loan in Austin, Houston, or Forth Worth, Texas?

It’s easier to qualify for an FHA loan than conventional loans due to their lenient requirements.

Meet with our loan experts at Reliance Financial Group of Texas so you can get started.

 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.