For homeowners who are current on the mortgage payment and are looking to save some money, the Federal House Administration (FHA) offers many insured and guaranteed loans to help people lower their interest rates and save money over the life of their loan. FHA loans are an effective way to quickly and easily save money without the hassle of private insurance, home appraisals, and other details that slow down the process and keep people from saving immediately. If you own a home and are interested in lowering your monthly payment, an FHA loan may be the perfect choice for you.
The FHA is a government run administration that works to help first-time and new home buyers find and purchase affordable housing and start building equity in property as opposed to renting. The FHA provides insured and guaranteed purchase loans to first-time homebuyers, as well as refinances to buyers of any age regardless of home buying experience. These loans are quite popular because the FHA can guarantee extremely low rates and also insures each loan, making private mortgage insurance unnecessary. This saves home owners money on their mortgage payment both on interest paid as well as by eliminating extra expenses.
The FHA extends purchase loans to new and first-time homebuyers. If you have already purchased one or more homes, you may not be eligible for an FHA loan. First-time homebuyers should shop around with different lenders and see who can offer them the best deal. Different lenders offer different rates and have varying fees, so checking availabilities with different lenders can save you even more in the long run. In addition, FHA loans can be issued with a down payment as little as 3.5%, which helps ease the burden of getting into a first home. Finally, closing fees and all other associated fees can be rolled into the cost of the loan and paid off over time.
If you already own a home, the FHA offers several refinancing options, including a streamline and a cash-out option. Both are great for homeowners who are interested in saving money over the life of their loan or who want to free up some money to be used to pay off other bills and expenses. With a streamline refinance, a home appraisal is not necessary, and the closing and lending fees are all rolled into the cost of the loan so they can be paid off over time. The other option, a cash-out refinance, allows home owners to borrow money against the equity in their home and use the money to pay off other bill or for other expenses.
If you are interested in taking advantage of low home rates and affordable housing, consider looking into an FHA loan or an FHA refinance. Fill out the form to speak with a licensed professional who can help you discover how much you can save on your mortgage!