Most potential home buyers are held back by thinking you must put 20 percent down on a home loan. That is not the case in the era we are currently in, or really in any housing market for the past few decades. There are a wide variety of low and no downpayment options available to home buyers. Recently, NSH Mortgage has shared ways to have a low and no downpayment on different mortgages such as FHA, VA, and the Conventional 97. Your Florida mortgage lender can show you how to cut your downpayment in half, using FHA, VA, or conventional loans, allowing you to have a lower home loan.
How To Cut Your Downpayment In Half With Private Mortgage Insurance
The first way to reduce your 20 percent downpayment is through the conventional mortgage with private mortgage insurance. To take the most advantage of putting a smaller amount down, but still keeping your PMI low, is to put down at least 10 percent, instead of the low 3 to 5 percent.
Private mortgage insurance also depends on your current credit score. A buyer with a 750 credit score will pay $100 less per month on a $220,000 home loan, than a 650-credit score buyer would pay on their mortgage.
Lower credit borrowers should take a look at a conventional loan compared to an FHA loan to see how their monthly payment can be reduced while having a lower credit. FHA mortgage insurance does not vary by the borrowers credit score. An average monthly PMI will range from $25 to $75 for every $100,000 that an individual borrowers on their home loan. Luckily, once you start paying off your mortgage, you can cancel your PMI. You can usually cancel the private mortgage insurance payments when you have at least 20 percent paid off.
FHA Mortgage Lowers Your Downpayment For Lower Credit Scores
As your Florida mortgage lender, we have discussed FHA loans greatly throughout the past few months. Below is a video to explain exactly what the differences between a Convention and FHA loan is:
Here are a few other articles that go more in detail about FHA and VA loans. As your Florida mortgage lender, NSH Mortgage stands firm by suggesting an FHA loan for a buyer with a low credit score to help learn how to cut your downpayment in half.
Mortgage Rates Can Always Affect Which Type Of Home Loan You Need
As the mortgage market goes up and down over time, it fluctuates which home loan will work best for you. It is always a good idea to talk to NSH Mortgage to find out which mortgage is the best fit for you.
Mortgage rates are currently at extremely low levels for all of the 10 percent downpayment loan types. You can use the NSH Mortgage calculator to calculate what your principle, interest, insurance, and property taxes would be for a home you are interested in. By calculating what the current prices would be, and then speaking to NSH Mortgage, you will be able to find out how to cut your downpayment in half, saving you money.
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How To Cut Your Downpayment In Half With NSH Mortgage Lender In Florida
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