Am I being offered a good mortgage rate? FHA 3.5% down 15 years 4.375% April 2011?

Posted on Aug 16, 2012 in FHA Information

Preparing for the Home Affordable Refinancing program Apply

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Question by Danny R: In a FHA Streamline Mortgage do you skip a payment?
Ive been told alot of info on this (butalot of conflicting info)…..typically when you refinance a property you skip your next payment. With a FHA Streamline do you skip a payment?

Best answer:

Answer by Dallas D
I have never used the streamline but I have done a lot of loans. You always get a free month that is my understanding even when I refied some properties you skip the first month, dosage that is why I always try to close a deal on the 3 or 4th you can skip almost 2 months.

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Question by creei27: Am I being offered a good mortgage rate? FHA 3.5% down 15 years 4.375% April 2011?
The way they present mortgage loans is confusing, doctor so I would like some input.

I am a first time home buyer, cost so I am eligible for FHA programs. The bank is offering me 3.5% down, adiposity 15 years, at 4.375%. The points on it are -0.125%, so they credit back that portion of the entire loan amount. They are also offering 1% cash back on annual payments, which amounts to like $ 70.

Is this a good rate? I had been interested in the 30 year loans, but they say that the program offering they have is only good for 15 year ones. That is, I would have to put 20% down for a 30 year FHA, versus only 3.5% down on the 15 year one.

Thank you in advance for shedding some light on this!
On the 30 year, I was quoted around 4.8%. If it’s possible to do the 3.5% down on a 30 year, I may do that instead since the loan would end up being dirt cheap then.
This loan is from Chase.

Best answer:

Answer by spalmer
Have you checked with other lenders? FHA minimum is always 3.5% down — not 20% down (even for 30 years). The credits back to you may only be with the 15 year program, but it’s silly to put 20% down on an FHA loan because you’ll pay pmi regardless for five years. I would check on the rates that other lenders are offering to decide if this is a good deal — it sounds a little high for a 15 year loan, but you’re also getting a credit back and annual cash back.

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4 Comments

  1. The 1% cash back and – 1/8 rate are nothing but marketing offers to gain your business or “tease” you into walking in the door. A typical 30 year FHA with 3.5% down is 4.25% and a 15 year is less than that. The bottom line is that you need to find another lender who will be more upfront and honest with you and one that will take the time to explain everything in great detail with you. Typically the big banks are the best banks to use on on FHA loans as they tend to have the most experience with them. Good Luck.

  2. Sounds like he is offering you the deal HE can make the most money on. Report him to his manager & if he is the manager, go higher up. Something is very fishy.

  3. I think you take real estate a bit too seriously and need to think of other ways to look at fha information.

  4. I've heard this before.