For some time now, as a lender , I have been debating if FHA is the better tool as a mortgage for my clients. Now bear in mind, I have been doing FHA mortgages in Denver for 9 years, so I am a big proponent.
But there has been a changing wind. The mortgage insurance premiums charged by HUD for acquiring an FHA mortgage have been going up. What does this mean? Well on 4/18/2011 and beyond, you will see anywhere from $25-? more per month on your payment depending on how much you borrow for you home.
Conventional mortgages are insured by privater third party companies. They took a big hit when things got rough, but have balanced, and we see premiums have come down. When a lender has a preferred status with a conventional mortgage insurance provider, they can get you discounted mortgage insurance. This can be to your benefit. But if your lender doesn’t compare mortgage insurance premiums, your payment may be affected without your knowledge.
So why would I say Conventional loans could be better for you? Well if you have a great credit score, and can put 5% down, then your best bet is to get with a lender who will take the time to compare and contrast the subtle differences for you. Showing you the cost of money now and in the future. This is not commonly done by my colleagues, but I infuse it into ALL meetings with my buyers and homeowners.
Have you had comparisons done on your loan, would you be interested? While your looking to buy/refinance is the only time a change can happen.
Summit Home Mortgage
303-779-0591 x 101