There isn’t a single mortgage product that is perfect for everyone, so it’s important to weigh all your options.
Investopedia released a review of FHA mortgages with pros and cons that is worth reading. If you are thinking about buying a home or refinancing your mortgage, information like this is helpful to making an informed decision.
Read the Investopedia article: Is An FHA Mortgage Still A Bargain?
In light of recent insurance-premium hikes, it’s worth researching your options before taking out an FHA loan if you plan to put down less than 20% on your home. But if a government-backed loan is your only way of attaining home ownership, it may be a sacrifice worth making.
Private Mortgage Insurance (PMI)
Private Mortgage Insurance is expensive, but the cost of a low down payment.
For some borrowers, an FHA mortgage is the best mortgage choice when purchasing or refinancing a home. But other borrowers have options that have a low down payment without paying PMI.
- 4 Ways to Cut PMI Out of Your Monthly Mortgage Payment
- VA Home Loan or USDA Home Loan May Be a Better Option Than an FHA Loan
There are pros and cons to every mortgage product, making it difficult for the general public to decide which mortgage is best.
One of the most important things we do for clients is explain their options, and walk them through the decision-making process. As a result, our customers make informed decisions about their mortgage based on their specific needs.
When you get ready to purchase a home or refinance your mortgage, please contact us to get started.