October 8th, 2009 — Mortgage Loans
Mortgage insurance is an amount charged to the homeowner each month at the rate of .5 percent per year of the total loan amount. An upfront mortgage insurance premium of 1.5 percent is also charged by FHA. If mortgage loan is of 15 years and less and the loan to value ratios are 89.99 percent and below, the annual mortgage insurance premium is not charged. In other cases, it will be canceled as per following situations:
Mortgages With Terms 15 Year Or Less
For 15 years and less mortgages, whereby Loan to Value ratio is 90 percent and greater, annual premiums will be canceled when the Loan to Value ratio reaches 78 percent regardless of the amount of time the mortgagor has paid the premiums.
Mortgages With Terms More Than 15 Years
For more than 15 years mortgages, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent, provided the mortgagor has paid the annual premium for at least 5 years.
September 26th, 2009 — Home Buyer, Home Loans, Mortgage Loans
Government-insured (Federal Housing Administration) FHA loans now make up about 25% of the mortgage market. Here are five reasons you should consider an FHA loan, if you’re looking to purchase a mortgage loan:
- Chances are good that you’ll come across one.
- Borrowers can qualify with any income. Historically FHA loans have gone mostly to low-income borrowers. But, in fact, there’s no cap on what someone can earn.
- Expect a tough appraisal. The home will need a clean bill of health from a government-approved appraiser, and the seller must fix any issues before a buyer can close on the loan.
- These loans are pricier than they seem. Nominal rates on FHA mortgages are comparable to those on conventional loans. But hefty fees on the FHA variety up the cost.
- They’ve gotten easier to obtain. FHAs once had a well-deserved rep for onerous paperwork and a longer, more difficult closing than conventional loans. But thanks to a new automatic underwriting system and the looser repair requirements, FHA mortgages take only a few days longer than conventional loans to close, says Bill Banfield, a vice president at Quicken Loans.
July 9th, 2009 — Mortgage Loans
Are you going to apply for FHA mortgage loans?
Don’t make a hasty decision and make sure that you fully understand the conditions of your FHA mortgage, you’re comfortable with the FHA loan rates and above all your affordability. Before signing up for FHA home loan you must know the answers to the following questions:
- Who pays the closing costs?
- What will be the total amount due every month on your FHA mortgage?
- What happens if your payment is a day or two late?
- What may cause an FHA mortgage to go into default?
- What is the actual cost of FHA home loan, you must be well aware of FHA mortgage rate in this regard.
