Using online mortgage calculators to investigate the mortgage rates and monthly payments on FHA loan has become increasingly common since these home loans are both easier to qualify for and have a low down payment requirement.
At the present time, FHA loans require a low a 3.5% down payment. The credit criteria and has tightened along with all mortgage loans but is still less stringent than other conventional mortgage loans.
When using the mortgage calculator to calculate monthly mortgage payments on these loans it is essential that the current FHA loan rate be entered into the mortgage calculator and not the mortgage rate on standard conventional loans.
Frequently, the mortgage rate on conventional loans is similar or close to the rate found on FHA loans. However, this is not always the case and the mortgage rate difference between the two loan products can be significant. When it comes to investigating mortgage qualifications and mortgage payments with the mortgage calculator, the only means of retrieving accurate results is to input accurate data.
For instance, the mortgage rate offered by Bank of America Home Loans for a conventional fixed rate loan is 4.75% with 1.375 points. The mortgage rate on an FHA loan from Bank of America is 4.87% with 1.375 points. With Wells Fargo Home Mortgage rates today, the FHA loan rate is 5.125% with 1.0 point and an APR of 5.537% while the standard conventional loan rate is at 4.875% and 1.0 point with a 5.052% APR.
Using these numbers in the mortgage payment calculator, the results show that on a $200,000.00 mortgage loan with Wells Fargo the monthly mortgage payment will be $1,058.42 for the conventional loan and a $1,190.82 monthly mortgage payment for the FHA loan.
If Bank of America mortgage rates are entered into the mortgage payment calculator, the monthly mortgage payment for the conventional loan is $1,043.29 while the monthly payment for the FHA loan will be $1,058.42.
The monthly principal and interest payment that is calculated by the mortgage payment calculator above does not include taxes or insurance or the FHA required monthly mortgage insurance payment.
The sample rates used as input for the mortgage calculator were taken directly from the mortgage lenders website, the accuracy is not guaranteed and all loans would be subject to bank approval and conditions. Mortgage rates listed are the current rates for a single-family, primary residence and are subject to change without notice.
The other factor to consider when evaluating the qualification requirement on these loans is that the closing costs are often slightly higher with an FHA home loan. This number is not factored into the mortgage rate and therefore is not evaluated by the mortgage payment calculator. The difference in loan costs can impact the amount funds needed at closing and the costs of both a conventional mortgage loan and FHA mortgage loan can be compared with a mortgage loan comparison calculator to thoroughly measure all of the home loan costs, not just the mortgage rate.
Tags: FHA loan, mortgage, mortgage calculator, mortgage lenders, mortgage loans, mortgage payment calculator, mortgage payments, mortgage qualifications, mortgage rates
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