November 16, 2018

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Articles in Category: Adjustable Rate Mortgage

Get Out Of An Adjustable Rate Mortgage With An FHA Refinance Loan

Get Out Of An Adjustable Rate Mortgage With An FHA Refinance Loan

Are you currently paying on an Adjustable Rate Mortgage (ARM) and concerned about your next interest rate hike? It’s possible to end the uncertainty about your mortgage payments and how the next interest rate increase will affect them by refinancing into a fixed-rate FHA mortgage loan. FHA Refinance Loans Are Available As Fixed Rate Loans You can refinance an existing FHA mortgage or a non-FHA loan such as a VA mortgage, conventional loan, etc. FHA loans are designed to help borrowers get into affordable mortgages using your current income and FICO scores to qualify. If you have an FHA adjustable rate mortgage, you can refinance to an FHA fixed-rate loan using the FHA Streamline Refinance loan program. The main feature of the FHA Streamline refi is that it generally requires | more...

 
When It's Time To Refinance Your Mortgage

When It’s Time To Refinance Your Mortgage

You might not be thinking about an FHA refinance loan today. Or tomorrow. But eventually the idea of refinancing your mortgage will become an option worth examining whether it’s because housing market conditions have increased your property values and you want to take value out of your home in cash, or getting into a lower mortgage payment, or even to get out of an adjustable rate loan and into an FHA fixed rate mortgage. When it’s time to refinance your mortgage, it’s important to ask yourself some important questions. The answers will tell you a lot about what kind of refinance loan to pursue. Do You Want Cash Back On Your FHA Refinance Loan? If taking cash back on your refinance loan is a priority, the FHA Cash-Out refinance option | more...

 
FHA Mortgage Loans: Do Interest Rates Matter?

FHA Mortgage Loans: Do Interest Rates Matter?

If you are a first time home buyer you might wonder whether FHA home loan interest rates quoted to you at the appropriate time actually matter-after all, aren’t these rates subject to change depending on market forces and isn’t the borrower basically being offered the “going rate” no matter what? The short answer is, interest rates DO matter and the rates you are offered are not necessarily the “going rate”, whatever that may be. Why? There are a few variables that affect the mortgage loan interest rate you are offered by the lender. Market forces are one of those variables. Depending on breaking news, market activity, and even overseas financial developments, the rates offered at any given time may be different than the last time you checked the rates. Another | more...

 
FHA Refinance Loan Credit Questions And Answers

Know Your FHA Loan Options

Do you know your FHA home loan options? There are many things you can do with an FHA mortgage and buying a new home is just one of them. You can use an FHA home loan to buy, refinance, rehab, or upgrade a principal residence, with lower down payments and protections for the borrower when paying off early. FHA New Home Loans Did you know you can use an FHA mortgage to buy an existing home or have one built for you from the ground up? Buying an existing property is one of the most common uses of an FHA mortgage, but you can apply for an FHA One-Time Close Construction Loan (also known as an FHA Construction-To-Permanent loan) using an approved builder to have a house built brand new. | more...

 
Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

Does FHA Offer Adjustable Rate Mortgages?

Does FHA offer adjustable rate mortgages? When you shop around for a participating FHA lender, be sure to ask about this type of FHA loan, sometimes known as an FHA ARM. Not all participating lenders may offer an FHA adjustable rate mortgage, but for those working with a lender that does, it is important to know some basics about the mortgage and how FHA loan rules govern the adjustments in the interest rates. Borrowers who apply for an FHA ARM loan must sign a disclosure statement that outlines the terms and conditions of the mortgage. The rules that govern FHA ARM loans are found in HUD 4000.1, and those rules begin with a definition of what the FHA considers to be an ARM loan. “An Adjustable Rate Mortgage (ARM) refers | more...

 
FHA Loan Rules: Can The Seller Provide Appliances As Part Of The Sale?

FHA Loan Options For 2018

Exploring your FHA loan options for 2018? Whether you are a first-time home buyer or an experienced house hunter, FHA loans have something to offer. You don’t have to be in the market for a new home, either-there are refinance loan options to help you get into a fixed rate FHA mortgage. New Purchase FHA Home Loans For First Time Borrowers While there is no FHA-sponsored special deal for first time home buyers or first time borrowers, FHA loans offer excellent options including a lower required minimum down payment-only 3.5% of the adjusted value of the home down as the minimum. FHA loans can offer more competitive interest rates depending on the lender, the borrower’s financial qualifications, and other factors. You will need to work with your lender to negotiate | more...

 
What Can I Rehab With An FHA 203(k) Mortgage?

What Is An FHA Loan Rate? FHA ARM Loans and Fixed Rate FHA Mortgages

What is an FHA loan rate? We discussed this question in our last blog post-that the FHA and HUD do not set or regulate interest rates on FHA mortgages, the ability of the borrower to buy discount points in order to lower the FHA loan rate up front, and how a borrower’s FICO scores can affect the kind of mortgage rates offered by the lender. But there is still an important issue to cover-the difference between how fixed rate FHA mortgages work and how FHA adjustable rate mortgage loans (ARM loans) work. What are the primary differences between an FHA fixed-rate loan and an FHA ARM loan? FHA Fixed Rate Mortgage Loans FHA fixed rate mortgages feature one interest rate, negotiated up front between the borrower and lender. Once the | more...

 
FHA Home Loans: Should I Buy A House Or A Condo?

What Is An FHA Loan And Who Qualifies?

What is an FHA loan and who qualifies? These are common questions, especially for first-time home buyers looking at all their options from conventional mortgages to FHA loans. What Is An FHA Home Loan? Simply put, an FHA mortgage is a home loan that has been guaranteed by the government, making the mortgage safer for the lender and less expensive for the borrower. The FHA single family home loan program is designed for borrowers who are financially qualified with FICO scores at 580 or better for maximum financing. (Lender FICO score requirements may be higher than FHA minimums.) An FHA mortgage as described here is intended for owner-occupiers and is meant for primary residences. That means that time shares, vacation homes, and other occasional-occupancy properties cannot be purchased with an | more...

 
What is a rate and term refinance?

Where Do You Get An FHA Loan?

When you’re ready to apply, where do you get an FHA loan? There are plenty of misconceptions about the FHA home loan process, which usually get cleared up fairly quickly once you begin working with a participating FHA lender. But in the planning and saving stages of the loan, it’s good to know the facts about FHA loans, where to get them, and how they work. FHA Loans Are Offered By Participating Lenders Not all lenders participate in the FHA loan program, some are not permitted to participate, and some may not be certified by the FHA yet. Borrowers who need an FHA mortgage will need to find an active, participating lender who can qualify or prequalify the borrower for a mortgage loan. Participating lenders advertise their affiliation with the | more...

 

FHA Adjustable Rate Mortgage Rules: Rates, Term, and Adjustments

Some potential FHA borrowers might be surprised to learn that an FHA adjustable rate mortgage (FHA ARM) is an option to consider, but for those with specific financial needs and goals, an FHA ARM loan might be a very good idea. FHA adjustable rate mortgages have specific controls over how much and when an interest rate change may occur, but there are other rules that also affect this type of FHA mortgage. All the rules for FHA ARM loans are found in HUD 4000.1, the FHA Single Family Loan Handbook. It says that the initial rate and margin are established by the lender, and that the margin must be constant over the entire term of the mortgage. Furthermore, “The interest rate must remain constant for an initial period of 1, | more...