Planning Your FHA House Mortgage
FHA home loans address some differently than others – some buyers like the low 3.5% down payment (the lowest possible down payment on an FHA mortgage for those who qualify) and for other buyers, the more flexible loan approval qualifications are the ones Main attraction.
One thing you should definitely consider about FHA loans? You do NOT have to meet any initial home purchase requirements to apply and be approved. After all this time, some consumers still mistakenly believe that FHA loans are only for those who have never owned a home before. That is not true.
When planning an FHA mortgage, it is important to think about your financial needs and goals as early as possible. Your choices in this area can make your FHA loan options more obvious or achievable, depending on what you expect from your mortgage.
Would you like to save as much as possible on the total cost of your mortgage? Do you intend to stay in the home for the entire life of the loan? These are areas where you may not have made any decisions, but you should start thinking along these lines for the best results on your home loan.
And there are good reasons for that – your goals and plans can make some loan options impractical. Or they think it’s a good idea to look at certain decisions from a different perspective.
For example, some borrowers are tempted to lower their interest rate by paying for rebate points. But should you be paying rebate points for a home that you thought could be sold again in a few years? Some consider applying for a variable rate mortgage. Is this a good idea if you want to sell in a few years? It is entirely possible, depending on the conditions.
But what if you instead keep the house long-term? In this case, it may be a smarter option to consider a fixed rate mortgage than a variable rate mortgage.
The time you spend on your home can make a world of difference. It is true that an adjustable rate mortgage can be a way to keep your early payments lower until the end of the introductory period.
Selling (or refinancing) your home before the introductory rate expires is one way to avoid future rate hikes – are you planning an early sale? Then a floating rate loan might be right for you.
Planning your mortgage is also about looking to the future and preparing for financially difficult times. By saving a little extra, you can prepare yourself having realistic expectations of what you can afford each month to pay off your new mortgage. If you anticipate and prepare for trouble here and there, you will be much better off through these financial troubles. Preparing for these things is a great way to start your life as a new homeowner