FHA 15yrs VS FHA 30yrs (insurance, loan, interest rate, escrow)

[RP55]

Hi,

What are the main advantages between these two?

Do we have to maintain an Escrow acct for 15yr Fha loan? Is that complusaory.

Do we have to pay monthly mortgage insurance for 15yr Fha?

Do we have to pay Upfront mortgage insurance for 15yr Fha?

Please tell me waht all the advantages of taking 15yr Fha.

Thanks in advance

[ChadMBell]

Escrow on all FHA loans

15 yr - No monthly insurance unless you're above 90% ltv. (comes off when you hit 78% LTV, no 5 years required)

30yr, monthly insurance for minimum 5 years and have to get to 78% LTV based on original appraisal

Upfront insurance on Both. Now 2.25% of the loan amount (up from 1.75)


15 yr, less or no monthly insurance, typically better rate by about .75%, paid off 15 years sooner.

30 yr, lower monthly payment obligation, more tax write off with interest (if you consider that a benefit)

[VictorBurek]

1. The advantage of a 15 year is a lower interest rate.
2. All govt loans require you escrow taxes and insurance
3. Yes, you must pay MI but the monthly rate is less. If your loan to value is under 90% than no MI on a 15 yr FHA.
4. Yes, you always pay the upfront regardless of term.
5. main advantage is a lower rate and lower MI and possibly no MI depending on loan to value.

[RP55]

If we pay 10% Down for 30yr fHa, still do we have to pay the mortgage isurance?

thanks

[VictorBurek]

Yes. If you are putting that much down do a conventional loan with a first mortgage to 80% and a 2nd lien for 10%. By doing that you will have no upfront FHA fee of 2.25% and no monthly MI. If your lender hasnt offered you this option already, you need to find a new one.