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12-21-2014, 07:09 PM
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#1
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Recycles dryer sheets
Join Date: Apr 2008
Posts: 223
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FHA Mortgage Loan
Does anyone have one and what is the process of getting one? Was attracted by the 3.5% downpayment requirement. How do I find a good lender? I used Penfed for my last mortgage but they do not offer FHA loans and I think the downpayment requirements are much higher.
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12-21-2014, 07:41 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Most banks and any mortgage broker can get you one. The problem with a 3.5% down payment is you will have to pay MIP. It can be a significant monthly amount. Depending on your loan size and terms, it could be as high as a 1.35% payment spread out over 12 months.
On a $200K loan, that's an extra ~$225 a month. And you also pay a premium at closing.
Get a VA loan if you can.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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12-21-2014, 07:52 PM
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#3
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Recycles dryer sheets
Join Date: Apr 2008
Posts: 223
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Thx for the input. Are there extra fees permanent for the life of the mortgage or do they fall off after I have paid a certain amount of the principal?
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12-21-2014, 08:00 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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 Quote:
Originally Posted by inquisitive
Thx for the input. Are there extra fees permanent for the life of the mortgage or do they fall off after I have paid a certain amount of the principal?
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It depends... You can always refinance and get rid of it.
At 3.5% down payment on a 30 year loan, I believe they are permanent. It used to be that once you got below ~80% LTV, they went away.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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12-22-2014, 01:41 PM
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#5
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,340
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Quote:
Originally Posted by inquisitive
Thx for the input. Are there extra fees permanent for the life of the mortgage or do they fall off after I have paid a certain amount of the principal?
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I thought they went away when you had built up 20% equity but it has been quite a while since I had one of those loans. It may have changed by now.
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When I was a kid I wanted to be older. This is not what I expected.
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12-22-2014, 05:24 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by Walt34
I thought they went away when you had built up 20% equity but it has been quite a while since I had one of those loans. It may have changed by now.
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It has changed.
For a > 15 year loan, with less than 90% LTV, you pay MIP for the life of the loan.
The least you pay, on any loan, even one with less than 78% LTV, is 11 years. Put 22% down, pay MIP for 11 years. Plus the initial mortgage premium at closing.
FHA Requirements: Mortgage Insurance
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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12-23-2014, 10:18 AM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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FHA inspectors can kill deals too
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You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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