10% down on FHA loan?
For a $260000 house price, if I have 10% extra cash for down payment, should I put the 10% down payment on an FHA loan? Or should I take a conventional loan and put 10% down payment?
- Lisa LLv 69 years agoBest Answer
Get your Loan Officer to show you both scenarios then you make the decision. Your credit score could make the difference. PMI companies are using your score to determine the factor used. FHA, with 10%down, your factor would be .86% plus the 1% financed upfront MIP. If your credit is excellent Conventional will probably be cheaper.
- linkus86Lv 79 years ago
This is not an easy question to answer and should be discussed with a loan officer who can show you some hard numbers to compare.
On one hand FHA closing fees can be higher when you include the upfront mortgage insurance premium, but the monthly mortgage insurance is often much lower than on a conventional mortgage. And then there is the issue of the money you would save by the slightly lower interest rate available on a conventional loan. You really have to crunch the hard numbers to answer this question correctly. Good Luck!
- chatsplasLv 79 years ago
Look at rates and expenses and fees.
Generally less red tape with conventional loan.
Why not go for 20% down and avoiding PMI costs altogether??Source(s): tax pro
- 3 years ago
it quite is going to count on your credit. Have your LO do a scenario the two strategies. See what the key is on month-to-month charge & money mandatory to close. in case you have outstanding credit time-honored could be greater effective. additionally look at financed upfront PMI on the time-honored. there's no month-to-month PMI.
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- E&LLv 79 years ago
Do which is best for YOU, which is not only the one which approves you, but offers the lowest rate.