Real Estate Seattle Mortgage 2010
Real Estate Seattle Mortgage 2010
Real Estate Seattle Mortgage 2010
Seattle isa great investment for the long term. And if you're interested in taking advantage of today's historical low mortgage rates with little to no money down on your mortgage you should look at a couple of different loan program options.
Zero Down Mortgage Option
USDA offers zero down programs for special first time home buyers. The USDA offers a great mortgage program for first time home buyers in certain area and many Real Estate Seattle area qualify. They offer maps on their website that highlight eligible areas. In addition to geographical limits, the USDA program has restrictions on household income, and it's intended for first-time buyers, although there are exceptions.
The USDA mortgage are great for Real Estate Seattle customers, they come from a bank, and there is no mortgage insurance. Instead, the USDA levies a 2 percent guarantee fee, which can be rolled into the loan amount.
Homes For Sale Seattle Low down payment: Federal Housing Administration | FHA Loan
The zero-down options listed above are restricted to limited groups of buyers. With a minimum down payment of 3.5 percent, the Federal Housing Administration is the low-down option that's available to most home buyers looking for Real Estate Seattle.
Today, about 30 percent of all home loan borrowers get FHA-Insured Loans, up from 3 percent during the housing boom of 2000-2006. The FHA gained market share after many other low-down-payment options (such as piggyback loans and sub-prime mortgages) evaporated in the after the housing bust.
Recent losses to the insurance fund has resorted in FHA increasing rates and/or down payment terms. The FHA charges an upfront premium of 2.25 percent of the mortgage amount. On a loan with the minimum down payment, there's an annual premium of 0.55 percent of the mortgage amount, or $550 a year for each $100,000 borrowed.
Real Estate Seattle Another low-down-payment option
There is another great home loan option for borrowers in the "low-down-payment" bracket: A standard conventional home loan with private mortgage insurance.
A number of companies offer private mortgage insurance, also called PMI for home loans with down payments of less than 20 percent. PMI is not the same thing as FHA insurance, a form of private mortgage insurance.
Typically, monthly private mortgage insurance costs more than FHA insurance for borrowers who put down 5 percent. However, PMI costs less than FHA for loans with down payments of 10 percent or more.
Private mortgage insurance has another edge over FHA: Under certain conditions, you can cancel PMI earlier -- as soon as two years after you get the loan with a conditional appraisal, compared to a wait of at least five years to cancel FHA insurance.
PMI has become easier to get. From the start of the housing bust until just recently, mortgage insurers slapped a "declining market" label on the worst-hit housing markets and required minimum down payments of 10 percent or more, instead of the traditional minimum of 5 percent. In addition, PMI gives the option to pay upfront to waive PMI or lower the overall PMI payment.
For more information on what loan programs are available Real Estate Seattle works with many banks, lenders and mortgage institutions to ensure their customers get the best advice and the most affordable home loan. Owning your home is not only the American Dream, it's also the biggest purchase most people will make. That's why Homes For Sale Seattle takes pride in helping first time buyers make smart decisions.
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