Buying a primary soon and have a great credit score ( above 760) so can qualify for the bets rates. Here is what my local credit union is offering. I will be putting down 20% as that makes me most comfortable, so total $440k loan.
Conventional 30 year fixed ( no points ) – 7.2%
Adjustable rate on 30 year amortization – 5 year at 5%, 7 year at 5.375% and 5.5% all no points.
FHA fixed 30 year —> 5.125%. The catch with fha loan is there is an upfront mpi of $7,700 (1.5% of cost of the loan) and $180 monthly mortgage insurance as well. I was told I can roll the $7,700 into the cost of the loan and correct me if I’m wrong but monthly insurance will drop after 11 years given I’m putting down 20%.
Is fha a no brainer here ?
Posted by no-look-passing
1 Comment
I think I read that only 30% of sellers accept an FHA loan.
Maybe it’s just me but when selling, an FHA offer went to the bottom of the pile.