Month: June 2021

Today we are going to discuss two common mortgage loan products, and the pros and cons of both: FHA versus Conventional Loans. Many people are familiar with the 20% down, good credit 30 year fixed conventional loan scenario. FHA loans are designed for people who have difficulty qualifying for a conventional loan to buy a house. FHA Loans offer down payments as low as 3.5% and are more lenient on credit scores and past financial issues. Borrowers can qualify for FHA loans with as low as 580 credit scores. One of the downsides of FHA loans are mortgage insurance requirements, if you put down less than 10% you will be required to pay monthly insurance for the duration of the loan, as well paying Upfront Mortgage Insurance Premium. The best…

This week we saw the benchmark 30-year fixed rate mortgage fall below 3% again according to Freddie Mac. While 15-year fixed-rate are down to 2.27%. This opens opportunities for refinancing and rate locks for many borrowers. Sam Khater the chief economist at Freddie Mac noted that this creates a lot of opportunity for borrowers to refinance and increase monthly cash flow, with nearly $2 trillion in conforming mortgages able to refinance and reduce their interest rate by at least half a percent. He said last year homeowners who refinanced their 30-year fixed-rate mortgages saved more than $2800 annually.

This week we saw the benchmark 30-year fixed rate mortgage fall below 3% again according to Freddie Mac. While 15-year fixed-rate are down to 2.27%. This opens opportunities for refinancing and rate locks for many borrowers. Sam Khater the chief economist at Freddie Mac noted that this creates a lot of opportunity for borrowers to refinance and increase monthly cash flow, with nearly $2 trillion in conforming mortgages able to refinance and reduce their interest rate by at least half a percent. He said last year homeowners who refinanced their 30-year fixed-rate mortgages saved more than $2800 annually.