With FHA loans dominating the mortgage industry in the last couple of years due to just a 3.5% down payment, they recently have leveled the playing field by becoming a NOT so very attractive loan option. Mortgage insurance on FHA loans has changed at least 3 times in the last year and a half. From .55 to .90 to now, 1.15%. It has doubled!! And where does this money go? Well, it basically goes out the window in my opinion, and if I can avoid getting you into an FHA loan, I will with a couple of options. First off, lets do the math on an FHA purchase of $250,000 in Denver for a first time home buyer.
FHA LOAN – $250,000 —3.5% down or $8750
Rate is 5% so $1355.47 for your Principal and Interest ((loan at $252,500 with 1% ufmip))
Mortgage Insurance – $241.98 x60 months at a MINIMUM
That is $14,518.75!!!!!!!!
Payment is $1597.45 and add in $200 for taxes and insurance so $1800!!! WOW
Now lets look at the other, more affordable, more intelligent mortgage. THIS IS CALLED HOMEPATH
Homepath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a 3% down payment, no mortgage insurance, and NO APPRAISAL! This is available for primary residences, second homes and investment properties.
For a list of home path properties, go to www.homepath.com
So that $250,000 home for $1800 a month, will now be $1555.47 with no mortgage insurance. You get more home for less money!!
Call me to find out more about this exciting product!
Brian Paul Quigley
Senior Mortgage Consultant, MBA
600 South Cherry Street, Suite 143
Denver, CO 80246
720 524 3215 Office 720 949 5630 Cell
303 547 3382 Fax
“When Service Matters”
CO License #LMB100008914