MortgageRefinanceRates.org has mortgage refinance products of every category, including conventional loans. A conventional loan is defined as a refinance loan not backed by the federal government. Conventional refinancing options are popular with consumers with strong credit history, good income and good assets. For this type of borrower, a conventional refinance can be a great option.
Talk to one of our experts to see if you qualify for a conventional refinance.
The FHA or Conventional Refinance Dilemma
Generally, choosing between a conventional and FHA refinance for your home is the frequent, most common dilemma that faces many homeowners.
Conventional refinancing is generally utilized by homeowners with better credit scores and equity on their property greater than 20 percent. This is because a lower equity amount requires private mortgage insurance (PMI) so your lender can be protected in the event that you default on the loan.
FHA Streamline refinance loans can take less time than conventional loans to close, because a standard conventional loan requires an appraisal and verification of assets. Although the FHA streamline refinance sounds great and easy, it’s important to remember that the benefits come with an additional cost of mortgage insurance. Mortgage insurance is also required for at least five years once the loan is initiated, and may go on longer if you are delinquent with payments or have a poor credit score. Conventional, on the other hand, only requires two years of on-time payments to be removed – conditional on your home equity being under 80% loan to value ratio.
To find out more about the differences between FHA and conventional loans, talk to one of our knowledgeable experts.
Mortgage Rates – An Important Factor to Consider
FHA and conventional refinance loans differ significantly by mortgage rate. The FHA 30-Year Fixed mortgage rate is generally significantly lower than the conventional rate, which is a benefit, but shouldn’t be weighed in isolation. You can see this mortgage rate to the upper right on MortgageRefinanceRates.org, where today’s national rates will be listed. If your current mortgage rate is lower than one of the two listed FHA or conventional national rates, it’s probably worth talking to a lender about saving a significant amount on your loan.
The additional costs of FHA mortgage insurance and also the upfront mortgage insurance premiums (up to 1.75 percent of your loan amount as of January 2013, rolled into your loan) mean that the cost-benefit of using an FHA loan over conventional might not be as straightforward as it appears. As with many other financial decisions, using a conventional refinance is a cost-benefit calculation for you and your home.
The MortgageRefinanceRates.org Advantage
MortgageRefinanceRates.org can help sort out the conventional versus FHA decision making process for you quite easily. By connecting you to one of our respected lenders, you will quickly get the best answers to your questions. We will match your loan conditions with a lender who can help you immediately. The mortgage professional will contact you and walk you through the process. Representatives are standing by to assist you. Simply call 800-840-2490.