Posted on: 15th Sep, 2009 08:16 pm
What are the advantages of refinancing to a fixed rate FHA mortgage?
Hi pettybob,
The main advantage of the fixed rate mortgages is that the borrower is protected against the mortgage rate fluctuations. When you go for a fixed rate mortgage, you know the exact amount of the payment that you need to make every month and you can plan your finances accordingly. Your mortgage payments remain fixed, even if the interest rates go up due to some changes in the market. An advantage of an FHA fixed rate mortgage is that your loan is insured by FHA and the down payment you are required to make is lower than that on other types of conventional loans.
The main advantage of the fixed rate mortgages is that the borrower is protected against the mortgage rate fluctuations. When you go for a fixed rate mortgage, you know the exact amount of the payment that you need to make every month and you can plan your finances accordingly. Your mortgage payments remain fixed, even if the interest rates go up due to some changes in the market. An advantage of an FHA fixed rate mortgage is that your loan is insured by FHA and the down payment you are required to make is lower than that on other types of conventional loans.
There are significant advantages to refinancing to an FHA mortgage with a fixed interest rate. Its more benefited in following conditions-
1) Higher cost mortgage
2) Adjustable Mortgage.
3) Variable interest rate.
4) Optional payments or interest payments that will increase in the near future.
Borrowers with adjustable or variable interest rate mortgages or interest only payment mortgages often encounter much higher monthly payments after having the mortgage for just a few years.
1) Higher cost mortgage
2) Adjustable Mortgage.
3) Variable interest rate.
4) Optional payments or interest payments that will increase in the near future.
Borrowers with adjustable or variable interest rate mortgages or interest only payment mortgages often encounter much higher monthly payments after having the mortgage for just a few years.