what is a good 15 yr and 30yr? Have 730 credit score and looking to make an offer on this house but this loan I got is an Internet deal.
Good timing, I just got off the phone with Chase to get my preapproval. On a 30 year conventional, they offered me 3.625% On an FHA, it is 3.375% My credit score is 740
Fawwwkkk bro. Need to go to Chase then. I think mine was FHA. Doesn't it matter if I don't have an account with them? Should I do FHA or conventional? My agent is waiting for me to do my paperwork. Time is ticking Brah Brah Brah Brah
With conventional the minimum down payment is 5%, with FHA it is 3.5%. FHA also has some additional insurance requirements, so your loan ends up being for more money. Monthly payments will be slightly more on an FHA, but you have to bring less money to closing. With conventional you bring more to closing, but your monthly payments would be less. It just depends on what you're more comfortable with.
You can even PAY for points, if you really want to and they let you. That's always an option. Make sure you don't do "suspicious" activity like closing a bunch of credit cards at once, opening a bunch at once, making a large payment to one, etc.
FHA loans include PMI insurance which jacks up the mortgage but it falls off after a few years so your mortgage will go back down. FHA gives you the option to put down 3.5% and it's a chance they'll try to help you with credits for closing if you run across a really helpful lender. Conventional you can pay 5% minimum or up to 20%,but IMO you never see that money back to be honest with you. To add to that you wont have to worry about paying PMI insurance and your homeowners insurance is covered under that also if im not mistaken, but its up to you to weigh out what you want to pay.
Conventional loans force you to pay PMI, unless you put down 20%. Once you've paid off 20% you can request to have it removed. The FHA loans have something similar to PMI that is also a monthly charge, but it costs a little more.
3.38% fixed as of 3 hours ago. I was at 5.5 fixed for the past 3 years. I have a 30 year but we pay an extra $500 monthly.
Yeah PMI drops off on an FHA Loan within 10 years or some certain percentage. Lenders make you pay for protecting them.. No idea how they get to pass the cost off to the owner but that's crazy in my eyes no matter how you explain it.
