Over 7 years, Conventional costs less by
$4,230
Monthly payment: FHA $3,110.91 · conventional $3,108.53
With less than 10% down, FHA mortgage insurance lasts for the life of the loan ($176/mo) — the only way out is refinancing. Conventional PMI ends on its own (here after about 12 years).
PMI rates depend heavily on credit score: below about 680, PMI can cost 1%+ a year and FHA often wins; at 740+, conventional usually wins. Ask lenders for both quotes.
Cost to own = cash at closing + all principal, interest and mortgage-insurance payments + balance still owed. Taxes, home insurance and HOA are the same for both loans.
| FHA | Conventional | |
|---|---|---|
| Monthly payment (all-in) | $3,110.91 | $3,108.53 |
| Principal & interest | $2,418.26 | $2,401.86 |
| Mortgage insurance / mo | $175.98 | $190.00 |
| Mortgage insurance ends | Life of loan | Year 12, month 3 |
| Loan amount | $392,755 | $380,000 |
| Cash at closing (down payment + upfront MIP) | $14,000 | $20,000 |
| Interest paid in 7 years | $163,990 | $165,338 |
| Mortgage insurance paid in 7 years | $14,782 | $15,960 |
| Balance left after 7 years | $353,611 | $343,582 |
| Cost to own after 7 years | $585,528 | $581,298 |
Estimates for education, not financial advice.FHA vs conventional loan calculator by Numlight ↗