With a small down payment, check both FHA and conventional mortgage options!
Scott P. Rogers
This was a great tip that Oguz Sengul (Wells Fargo Home Mortgage) shared with me yesterday....
As shown above, sometimes even with a lower rate (4.000% via the FHA loan program), sometimes you will have better financing terms with a higher rate (4.125% as a conventional loan).
You need to be checking both the interest rate as well as the payment. Higher up front fees and higher monthly mortgage insurance costs can make the FHA loan program less affordable than a conventional loan if you have at least a 5% down payment.
Disclaimer from Wells Fargo: Interest rates displayed above require that you pay 1% of your loan amount toward the loan origination charge.
As shown above, sometimes even with a lower rate (4.000% via the FHA loan program), sometimes you will have better financing terms with a higher rate (4.125% as a conventional loan).
You need to be checking both the interest rate as well as the payment. Higher up front fees and higher monthly mortgage insurance costs can make the FHA loan program less affordable than a conventional loan if you have at least a 5% down payment.
Disclaimer from Wells Fargo: Interest rates displayed above require that you pay 1% of your loan amount toward the loan origination charge.
