Monday, March 21, 2011

Conventional Wisdom--FHA vs. Conventional

In recent history, buyers with little down payment and high credit scores still leaned towards FHA loans for their good rates and low down payment requirements.  Currently for as little as 3.5% down, which can still be a gift, a decent FHA loan can be obtained. 

In mid-April, FHA will adjust their up front funding fee which may in fact turn the tables for buyers looking for those low down payment loans.  It looks like now using conventional financing can save buyers substantial amounts of money at the onset and years down the road.

With new conventional programs, there is no upfront premium, unlike FHA which requires 1% upfront either added to the closing costs or financed into the loan.

On these conventional products there will be lower monthly private mortgage insurance costs than with FHA which means realized savings month over month and year over year.

On some of the conventional products you can get in with as little as 3% down as opposed to FHA's required 3.5%.

If the buyer has the ability to put a little more down with some of these products and can bring a down payment of 5% as opposed to FHA's required 3.5% then in 3 years the buyer can save approximately--

$2116 in monthly mortgage payments
$4005 in mortgage insurance
and will have $5632 more in equity.

When the FHA pricing changes in April, these numbers above will adjust to
$3885 in monthly mortgage savings
$5774 in mortgage insurance costs and this is in just the first three years!  Not something to sneeze at!

For more information and details please give me a call or email me so that our team can put you in touch with a mortgage professional who can assess your situation and determine which loan is right for you!


Thursday, March 03, 2011

A Charity That We Love Continues to Make a Difference!

Arts for Life, which is a charity that we support here on our team and personally continues to bring the arts to sick children at Brenner's and other children's hospitals around the state.  If you are interested in contributing or knowing how you can help, please contact me and I can give you the info.

Enjoy the article!  Brooke

Arts For Life Brings Music to Patients