FHA loans offer more flexibility, especially when it comes to credit score, income level, homeowners’ equity and down payments. This makes them one of the most preferred alternatives to fixed-rate and adjustable mortgages.
Because FHA loans are government-backed, a typical FHA loan includes an upfront fee that is bundled into the loan, and includes monthly mortgage insurance. FHA loans enable several homeowners, who do not qualify for conventional loans, to purchase a new home or refinance an existing home. FHA loans offer the following advantages to a homeowner:
FHA loans provide one of the easiest ways to qualify for refinancing or for buying a home. The loan is issued by the U.S. Government and is appropriately insured to that extent. It gives the homeowner flexible choices. The loan allows you to:
The actual payment, on account of the FHA loans, will vary, depending upon your current situation and the prevalent market interest rates at the time of loan application. Once granted, you can easily pay off your mortgage at any time without any pre-payment penalties. The loan can be offered as either a fixed interest rate or as an adjustable-rate mortgage. You can opt for either, based on your needs.
Refinancing your home with FHA loans is faster and easier when opting for an FHA Streamline loan. It requires no potential appraisal. To learn more about the loan and its requirements and benefits, contact a Loan officer at crownhm.com today!
For homeowners facing higher-than-market interest rates on their loans, it is a good idea to check out other financing options. That’s where we come in. Refinancing offers several no-cost and low-cost incentives to save you interest premiums and high rates. Similarly, short-term loans carry lower interest rates and allow you to pay off your loan in a much shorter time. Refinancing can also help lower your monthly payments, as well as your overall credit period. Be advised that whenever you consider refinancing your current mortgage loan, your finance charges may be higher over the course of the loan. Crown Home Mortgage always recommends discussing the TIP or Total Interest Percentage with your licensed loan officer to ensure the loan creates a long-term benefit.