Oak Lawn-Hometown School District 123 FHA Mortgage Calculator

An FHA buyer in Oak Lawn-Hometown School District 123, IL borrowing $269,690 (with 3.5% down on a median $279,472 home) pays an upfront mortgage insurance premium (MIP) of $4,720 — equal to 1.75% of the base loan amount. This upfront MIP is typically financed into the loan balance rather than paid at closing, increasing the total loan amount to approximately $274,410.

For a typical FHA loan in Oak Lawn-Hometown School District 123, IL with a base loan amount of $269,690, the annual MIP rate is 0.55% — adding approximately $124/month to the required payment. This monthly MIP is separate from principal, interest, property taxes, and homeowners insurance.

Unlike conventional PMI — which automatically cancels at 80% LTV under the Homeowners Protection Act — FHA annual MIP on loans with less than 10% down does not fall off. For FHA buyers in Oak Lawn-Hometown School District 123, IL putting 3.5% down, this means ongoing monthly MIP payments of approximately $124/month for the life of the loan. To eliminate MIP, borrowers must refinance into a conventional loan once they reach 20% equity, or put 10%+ down at origination (MIP then cancels after 11 years).

The 2025 FHA loan limit for Oak Lawn-Hometown School District 123, IL is $541,287 for a 1-unit property. A typical buyer purchasing the median-priced home here (approximately $279,472) with 3.5% down would have a base loan amount of approximately $269,690, which falls within the local FHA limit — making FHA financing an accessible option for eligible buyers.

Beyond principal and interest, FHA buyers in Oak Lawn-Hometown School District 123, IL with a median $279,472 home can expect approximately $5,126/yr in property taxes, $929/yr for homeowners insurance, $2,435/yr in energy utilities, and $124/mo in FHA mortgage insurance (MIP). Together, these non-P&I costs add approximately $832/month to the required payment in Oak Lawn-Hometown School District 123, IL.