Posts Tagged ‘financial disadvantage

FHA Refinance And Mortgage Loans, What You Should Know?

Wednesday, January 7th, 2009

FHA/HUD Insured Mortgages and Refunds
If you have an FHA loan or HUD insured mortgage, you may have paid an “up-front” mortgage insurance premium at the closing of your house.

Assuming you did not default on your mortgage payments, you may be eligible for a refund on part of your insurance premium.

Loans granted after September 1, 1983 may be entitled to this refund. Check your FHA loan settlement paperwork or phone your lender to learn more. If you need further help, contact your FHA loan officer for help.

FHA Mortgage Fees
“Reasonable and customary” mortgage loan fees can include appraisals, inspections, credit reports, document preparation fees and more.

Question your lender for a list of known fees due with your type of FHA-insured home loan, FHA refinance, FHA streamline refinance or other FHA transaction.

Have a list of the fees you are expected to pay, when they are due, and determine how they affects the bottom line of your loan.

FHA Loan Rates, Mistakes to Avoid
One major mistake potential homebuyers can make when applying for an FHA home loan is to make a major credit buy. Don’t cloud your debt-to-income ratio with a huge buy before applying for your FHA insured home loan.

Your debt-to-income calculation is based on your current debts and the percentage of that debt against your income. Major credit buys will seriously alter that ratio, sometimes enough to weigh against you for your FHA loan.

If you can afford to pay off any outstanding loans such as auto loans before applying for your FHA loan, that can be a excellent choice.

Don’t place yourself at a financial disadvantage to do so but if you are able, eliminating debt will help when you apply for your FHA loan. Consult a financial planner or question your lender for advice.

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