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Answers (4)
- Greg Darlin, "Greg Darlin"
- Contributions:3238
To be more specific, than my counterpart who is trying to earn his Zillow Allstar Badge by posting . . .
FHA and Conventional rates are virtually the same. The differences are slight but many, depending upon the obfective(s).
1. FHA has a mandatory fee of 1.75% that will get added, (most cases) to the loan amount: UFMIP. Either the borrower funds it in the loan or pays it at settlement. Conventional does not have such a fee at all.
2. FHA's monthly MI is a lot less than Conventional once the LTV goes above 80%.
3. Mandatory MI is for 24 monthS (depending upon Conventional lender with an LTV of 78% of less---with no 12 mos lates to the mortgage).
4. Mandatory MI with FHA is 5 years, no matter what the LTV will be.So, there is a lot to think about. Post a loan request on Zillow and tak with all the good lenders.
FHA and Conventional rates are virtually the same. The differences are slight but many, depending upon the obfective(s).
1. FHA has a mandatory fee of 1.75% that will get added, (most cases) to the loan amount: UFMIP. Either the borrower funds it in the loan or pays it at settlement. Conventional does not have such a fee at all.
2. FHA's monthly MI is a lot less than Conventional once the LTV goes above 80%.
3. Mandatory MI is for 24 monthS (depending upon Conventional lender with an LTV of 78% of less---with no 12 mos lates to the mortgage).
4. Mandatory MI with FHA is 5 years, no matter what the LTV will be.So, there is a lot to think about. Post a loan request on Zillow and tak with all the good lenders.
- Brent Mendelson, "EastCoastMortgages"
- Contributions:61
It doesn't matter about the rate per se but rather the monthly payment. At least in this case.The conventional loan will have a lower monthly payment assuming other particulars of the loan remain the same. Which one has the lower monthly payment? That's what matters the most to you right?
- FERMI
- Contributions:272
You need to look at more than rate. What is your down payment? FHA has upfront MIP and monthly MIP. Compare that with the mortgage insurance that they are offering on the conventional, and look at all costs.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
Which offers better rate, FHA or Conv loan?
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