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How to Calculate Mortgage Insurance on an FHA Loan

Do you need an FHA mortgage calculator? FHA loans provide a degree of leeway when qualifying for a home loan that conventional lending options do not. That leeway includes a price. Lenders are prepared to take additional hazards associated with lower down payments, lower credit scores, and higher debt-to-income ratios because FHA insures the loan. FHA insurance covers the lender’s loss if a property owner defaults.

Upfront Mortgage Loan Insurance Superior (UFMIP)

FHA UFMIP is easy and simple to understand. It really is a lump sum premium that is financed into the FHA loan. FHA UFMIP is 1.75% of your FHA loan amount. Consider the next:

  • You are buying a $150,000 home and making the minimum 3.5% deposit ($5,250).
  • Your BASE FHA loan amount is $144,750 ($150,000 – $5,250).
  • FHA UFMIP is 1.75% of $144,750, which equals $2,533.
  • Therefore, your FHA loan amount will be $144,750 + $2,533 = $147,283.

As you can plainly see, FHA UFMIP will not impact your cash needed to close or cost savings required to obtain an FHA loan. FHA UFMIP is financed into the FHA loan.

Annual Home Loan Insurance Superior (FHA MIP)

Annual FHA MIP is a little more perplexing, and we won’t bore you with tiny details. Although, it isn’t terribly difficult to observe how it impacts your FHA mortgage repayment.

FHA MIP has computed annually, nevertheless, you pay it regular monthly as part of your FHA mortgage repayment. The FHA MIP rate depends upon your loan term and deposit (see FHA mortgage calculator below).

Consider the following from our UFMIP example:

  • The FHA MIP rate is 0.85% using the FHA MIP desk.
  • Converting annual FHA MIP to monthly is performed by multiplying the annual rate times the common principal balance over another 12 months, backing out the UFMIP, and dividing the twelve-monthly superior by 12. That’s the complicated part.
  • The end result is an FHA MIP repayment of $101.67.
  • Luckily for us, our FHA Payment Calculator does the task for you. Check here.

Calculating FHA’s Month to month Premium

Determine the correct loan amount using an FHA mortgage calculator. Which has a dealer price of $100,000, for example, subtract the down payment of the least required 3.5 percent. That is, $100,000 minus $3,500 produces a financing amount of $96,500.

The first computation is designed for the in advance mortgage insurance premium. Multiply the loan amount by 2.twenty five percent. Example from above: $96,500 multiplied by.0225 equals $2,171.25. That is put into the loan amount, making the loan amount $98,671.25). The loan is round right down to $98,650 and the particular amount of $21.25 would be gathered from the debtor at the closing.

To analyze the regular monthly amount using an FHA mortgage calculator, the loan amount of $98,650 is multiplied by.0055, yielding $542.58. Then divide this every year amount by a year and you get $45.21, which is put into the monthly payment of main, interest, fees and homeowner’s insurance.

The Federal Property Administration (FHA) has always required mortgage insurance on the mortgage loans it insures. The purpose of the insurance is to safeguard the lender. When the debtor defaults on his loan, the lending company can file a promise against FHA’s insurance account and recover losses from the foreclosure process and loss of the loan. Learn more details at:

Tax Deduction Tips for 1040EZ

Using the 1040EZ form really is very simple and straightforward and that is why so many people really like the form. When filling out the form, you should do the first draft in pencil and then trace over it in pen so that you are certain you have filled out everything correctly. As simple as the form is compared to other tax forms, you can still make mistakes and it is a good idea to go slowly and do things in pencil so you can make changes if needed, when you correct your work. If you input all of your deductions and you still owe, be sure to make your check out to the “United States Treasury” to complete your taxes for the more information about tax filing at

If you used a 1040EZ form last year and you received another one in the mail this year because it was what you used last year, you should know that you don’t have to use this form again. If your situation has changed, you may not be able to use this form any longer, especially if you have many different deductions that you will need to input. It’s important to remember that form 1040EZ is for those that have a very straightforward tax situation and generally there is not a place for itemized deductions. You can deduct more general things, but if you want to itemize you should use the 1040A form, it will allow you more space for the itemized here to calculate tax.

Tax Deduction Tips for 1040EZ

You can still use the 1040EZ if you do not claim any dependents and if you do not claim a deduction for educator expenses, the student loan interest deduction, or the tuition feeds and deductions. You also cannot claim the education credit, retirement savings contributions credit, or the health insurance credit. If you will not be deducting these items you can still use the form, though many find it easier to simply use the 1040 forms because they are meant for more complicated tax situations. If you want the 1040EZ form, then you have it for as long that you had meet all the needed criteria like, not owning any of the taxes on wages from household employment being paid to the household employee. You also cannot be a nonresident alien or have received any advance earned income credit payments. In addition, you can only have had wages, salaries, tips, and other compensation that does not total $1,500.

You can still use the 1040EZ if you don’t claim any form of dependents and if you don’t claim a deduction for educator expenses, the student loan interest deduction, or the tuition feeds and deductions. Using the form 1040EZ really is very simple and straightforward and that is why so many people really like the form. When filling out the form you should do the first draft in pencil and then trace over it in pen so that you are certain you have filled out everything correctly.

Form 1040EZ Tax Basics

The 1040EZ form is intended specifically for all individuals who can meet the criteria. Those individuals may even did not know who really they are. That is why these form 1040EZ tax basics were so necessary to understand and know. The following information on the tax form will help you understand better what you need to more information about 1040EZ form filling at

This tax form is specifically for those people who don’t need to file the typical tax return, but do need to file their taxes. The 1040EZ is a lot shorter and easier to understand. In fact, it is so easy that anyone can fill it out. It is important, however, to read the instructions and understand what is required each year. For the year 2006, individuals who filed the 1040EZ may request their refund by telephone. Individuals who are eligible to file this form may order the form by phone, on the Internet at, and at several other locations as well.

The following 1040EZ instructions are only applicable to the tax year 2006. These instructions do not apply to any other tax year; however, the instructions for previous years may be found online.

The instructions will tell you where to write your name, address, and social security number as well as what information to include on what line. Your wages, interest, and other income will need to be filled out on the respective lines. Once you finish, double check your name, address, social security number, and the like to make sure all is correct. Then you will be able to receive your refund much faster.

Form 1040EZ Tax Basics

There are several reasons to use the 1040EZ. One of them is that it is much quicker and easier to file, which means the IRS will process it quicker and you will get your refund faster. Lots of people qualify for the 1040EZ, so check and see if you do.

The easiest way to file the form 1040EZ quickly and easily is to get your W-2s, 1099s, 1099-G, and 1099-INT statements together. You might want to start out with two of the 1040EZ forms so that you can practice with one and then have a final copy for another. You will also want to have a copy of the instructions and read them very carefully. This form is easy to fill out, just make sure you read the instructions so you know you do it correctly. Finally, have a pen and calculator handy so that you can make your mortgage calculations.

Some of the basics for form 1040EZ is that the majority of taxpayers qualify for the telephone excise tax refund that is claimed right over the phone. The following information will help you determine whether or not you qualify for the 1040EZ. First of all, if your income is less than $100,000 and your interest income is less than $1500 you qualify for this tax form. You also qualify if your spouse and you are lower than 65 years of age. The income which is specifically coming from wages, unemployment compensation, Alaska Permanent Fund dividends, and interest are eligible for this kind of tax form. Those with no adjustments to income, those that are belong to claim only standardized deductions, those who may claim the Earned Income Credit, and those who aren’t claiming other tax credits, as well as those who can claim the Telephone Excise Tax refund are eligible for the 1040EZ.

A Primer for the 1040EZ Form

The 1040EZ form has been around for quite a while and each year the form is available to help people file their taxes it does change somewhat from year to year. The form 1040EZ does have some new directions for 2006 and the following information will be very helpful for those filing their 1040 EZ.

The one page Form 1040EZ was designed to be easy and is basically for people filing as single or married filing jointly and were paid a salary and have taxable income not exceeding $100,000.

In addition to be eligible to use the Form 1040EZ, you and your spouse must be under age 65 and not blind, you do not claim any dependents and your interest income is not over $1,500. read more information about tax calculation at

Form 1040EZ Tips

You may be able to get larger tax deductions, by using form 1040 if your itemized deductions exceed the standard deduction. The standard deduction is $5,700 for most individuals and $11,400 for most married couples filing a joint return.

A Primer for the 1040EZ Form

Also, if you suffered personal casualty losses from certain federally declared disasters, you may qualify for an increased standard deduction and file Form 1040 and you should also consider that if you purchased a new vehicle after February 16, 2009, you may qualify for an increased standard deduction only if you file Form 1040A or Form 1040. Each tax situation is different so if you are preparing your tax return be sure to review the IRS publications and help screens.

If your adjusted gross income (AGI) is $58,000 or less, you can file for free from the IRS website, using Free File software or by using any of the four well known cooperating companies reviewed in my website.

It’s Very Easy and Just One Page to Fill in

It’s easy to see if you will receive an IRS refund or State refund simply entering your wage and tax information into one of the user friendly forms of any of the web based online tax preparation service companies.

Just a couple more questions and then you will be able to determine if you can qualify to use the 1040EZ form, you cannot have unemployment compensation, or a qualified state program results, or earned tips they must be reported in boxes 4 and 7 on Form W-2, and now you are almost complete.

Also the following will prevent you from being able to qualify to use the 1040EZ form such as having a sole proprietorship, which is a home-based or small businesses that files Schedule C and you cannot have a capital gain transaction or any IRA deductions.

If you do not meet these strict 1040EZ form requirements then alternatively, you must either file Form 1040 or Form 1040A, which are not as simple as the Form1040EZ.

If you prepare your own tax return, or hire a CPA or tax preparer for a complex tax form, it makes sense to start now. There are lots of benefits you can get out of it. So don’t worry things out!