Posted on: 17th Aug, 2009 03:39 pm
What about a loan amount on 30 yr. contract w/ 1 point and statement of 1.5% of the total is for FHA Mortgage Ins. on a re-fi @ only $38K...We have considered re-financing but only owe $37,9--. on the house with 6 years left on 15 yr loan. Payment with taxes and insurance is little less than $700. and we would like some breathing room what with my husband disabled at 67 and me the breadwinner. Our credit is super, however! Can anyone explain the 1 point and the 1.5% FHA Mortgage Insurance on a streamline FHA loan, which the flyer mentions in the fine print? Anyone have info relating to this company or if making a 10 company application on-line at one site is a smart thing to do, like when looking for car insurance.....
1 point is equal to 1% of the overall loan amount...so if you only owe 37,900 on the home, then 379 dollars will be added to your overall closing cost. Points can be expressed as Origination Points, Broker Points, or Discount points regardless of their category they mean the same thing to you...an additional 379.00 to you overall cost. It is very important when comparing loan options to get the overall closing cost, not just the points...
In regard to your second question...FHA assess 1.5% of the loan amount, in this case 568.00, for their up front Mortgage Insurance Premium. It is standard on every FHA Loan with certain exceptions.
I would advise against filing your information out online...Most lenders require a higher loan amount to even consider working on the file...compare your local bank's rate to the national averages available at BankRate . Com
On a side note
If you have a lot of equity in your home, and you have great credit, you are better off going for a standard Conventional Loan...you will avoid any 1.5% fee and the rate will be lower...
Whoever you apply though make sure that you compare Conv vs FHA
Good Luck
Are you going back to a 30 year or back to a 15 year?
In regard to your second question...FHA assess 1.5% of the loan amount, in this case 568.00, for their up front Mortgage Insurance Premium. It is standard on every FHA Loan with certain exceptions.
I would advise against filing your information out online...Most lenders require a higher loan amount to even consider working on the file...compare your local bank's rate to the national averages available at BankRate . Com
On a side note
If you have a lot of equity in your home, and you have great credit, you are better off going for a standard Conventional Loan...you will avoid any 1.5% fee and the rate will be lower...
Whoever you apply though make sure that you compare Conv vs FHA
Good Luck
Are you going back to a 30 year or back to a 15 year?
in concurrence with jimmy, i wondered as i read the original post why you were seeking an fha loan to begin with. conventional would be the way to go, i believe, unless there's a lack of equity.
