Making investments in real estate or anything else that might require you to take up a loan can be really difficult. This is especially in today’s world where the world economies are shaky. One day the dollar is up and the next day it is falling. There is no one who wants to make a loss especially if it is the only money that they have left. You want to buy a home in this day and era? There will be some serious planning and calculating that you will do. Mortgages are in no short supply all over nowadays.
It is important to be very careful when you are taking up a mortgage. There are banks that are offering really attractive loans for all those who want to purchase homes. There are mortgage companies willing to give you the loan as long as you are qualified. It would be unwise to forget about the government. There are Federal Housing Administration (FHA) loans for all those who are eligible. All these are good options. Each of them has its pros and cons. The FHA loans might sound like the perfect option against the other two but then you need to be prepared for them.
This is why you should find an online mortgage calculator. There are those that are specific for the FHA loans. When you are planning to take up the loan, the FHA loan calculator will come in really handy. They are always up to date with the changes in the mortgage loan. Currently, mortgage rates are at an all-high level. They are at the highest point that they have ever been in the past decade. For instance, the fixed rate for a conventional 30 year mortgage has moved from 3.75 to something in the neighborhood of 4.0%. The mortgage rates have continued rising over the past few months since July.
Extra costs and reliefs
The FHA loans come highly favored because they have fewer credit requirements compared to the other mortgages. At the same time they also have lower down payment requirement. This is especially convenient for most people who are trying to figure out where they will get the down payment from. Still the FHA loans come with some additional costs. These include things like mortgage insurance premium, appraisal fees and annual premiums.
It is possible to get a loan calculator that will give you a very good estimate. The estimated amount that you will pay for the loan will be dependent on annual taxes and the insurances. Most calculators will ask for this information in order to provide you with a more accurate quote. You can still get a rough estimate when you enter the value of the home and the rate.
The most notable relief that the FHA gave in 2015 is the reduction of the mortgage insurance premium. In January, the insurance premium fell from 1.35% to a buyer-thrilling 0.85%. The loans have increased in popularity since this move. The administration also set in place loan limits for the loan originators to abide by.