FHA Home Mortgage Loan Interest Rates

5 Responses to “conventional mortgage versus fha mortgage?”

1. Professional Peon says:

   January 13, 2010 at 11:28 am

   Go for the better rate. FHA is a government insured loan, conventional loans are not better or worse, but if you can get the lower rate with FHA i say do it.

   It’s a small more work for the company processing the loan, but not more hard for you.

   Take the lower rate.
2. loanmasterone says:

   January 13, 2010 at 11:53 am

   Depending on the program you are approved for on a FHA mortgage loan you could place as low as 3%-4% down. In this economy why place a lot of money down on a property when you don’t have to. Once you close escrow the property might go up side down, then your large down payment would become useless to you. These funds could better be used in an interest bearing account.

   Placing a large down payment on a house would cause you to have a lower loan amount thus perhaps a lower monthly payment.

   With the FHA mortgage loan you would be required to have the equivalency of Mortgage insurance which would remain on the property as long as you have the loan. On a conventional mortgage loan you may apply to remove this mortgage insurance once your loan balance dips below 80% of the value of the house.

   Since you are approved for both mortgage loans it would seem reasonable that the one with the lowest interest rate would be the better of the two. Check out the monthly payments for each, if there is a significant difference, I reckon that would be my choice even with the mortgage insurance.

   In some instances the mortgage insurance might be tax deductible if you are in a certain tax bracket. You might also check to see if the same applies to a FHA mortgage loan.

   For all tax and legal matters you should consult with your tax consultant and attorney.

   FHA appraisals are different as if there are repairs that are needed that are noted by the appraiser, these repairs must be corrected prior to the closing or some arrangements must be made to hold these fees in escrow until they are completed and verified that they have been complete by the same appraiser or another appraiser. This requirement does not exist with a conventional mortgage loan.

   I hope this has been of some use to you, excellent luck.

   “FIGHT ON”
3. Amara says:

   January 13, 2010 at 12:07 pm

   If the monthly payments are the same and the down payment is the same, go with the one that has lower closing costs. This will save you money up front.

   The comment about having to keep Mortgage Insurance on an FHA loan until it’s paid off isn’t accurate. You are required to keep it a minimum of 5 years on a 30-year FHA mortgage, then it will be cancelled once you reach 78% Loan to Value. Conventional loans are also required to cancel Mortgage Insurance Premiums (or “PMI”) once you reach 78% Loan to Value. In either case, it’s based on either the original appraised value or the buy price, whichever is lower.
4. FHA Mortgage FHA home loan says:

   January 13, 2010 at 3:27 pm

   FHA mortgage Loans from a Florida FHA mortgage lender specializing in the FHA home loan programs. FHA mortgage Loans from a Florida FHA mortgage lender specializing in the FHA home loan programs. We are approved by HUD to originate FHA home loans in Florida for both excellent and terrible credit borrowers. In fact, you don’t even need a fico score to qualify for an FHA mortgage. FHA home loans are approved on a common sense approach to underwriting rather than the more common credit score approach. This underwriting philosophy makes it simple for anyone to own a home.
5. Featured | Home Equity line of Credit - Information says:

   January 14, 2010 at 12:36 pm

   [...] conventional mortgage contra fha mortgage? | FHA Home Mortgage … [...]

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