There is a little known fact about FHA loans and PMI. Not only is FHA Mortgage Insurance more costly per month in most cases, it is also more likely that you will have this insurance as long as you have this mortgage.
In my opinion, the shorter the better for both!
“But!” you say, “I just closed on my FHA loan a year ago. Can I even do anything now?”
Here’s what we are finding:
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Home values have risen in most markets in Michigan over the past 24 months.
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Interest rates have recently come down again and are very low.
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Your credit scores will have risen with on-time mortgage payments.
Because of these three new and improving realities for many in mid-Michigan, those who did an FHA loan as little as 12 months ago may qualify for a lower-cost conventional loan today.
You CAN afford a 15-year mortgage!
Combining the benefits of lower rates with lower conventional loan PMI (or no PMI if values are high enough), many are finding the 15-year conventional loan payment to be close to what they are currently paying.
If you found that you could cut 10 to 15 years off your mortgage term by making a payment similar to what you are now paying, would you do it?
What if the payment was $100 more? What about $200?
There are financially sound reasons why you should consider this. The next seminar called Own Your Stuff! will detail many of them.
This Saturday, June 14
10am to noon
The Kellogg Center in East Lansing.
Reserve your spot today. Call Liz at 517. 381.3450.