If you are already enjoying home purchase credit from the Sunshine State, chances are that you no longer need Monthly Insurance Program (MIP). This is for applicants who have been running FHA mortgage Florida prior to June of the current year. After they have remitted 78 percent of the entire borrowing amount, they cease paying this premium. However, even those applying via the FHA Home Loan Group (fhahomeloangroup.com) at this particular moment can continue enjoying traditional benefits of the MIP with the exception of the above adjustment that came into effect in early 2013.
Comparative Advantages of the Monthly Premium
When you currently use MIP on FHA mortgage FL, you obtain these comparative benefits over the mainstream offer:
- You pay only a 2% rate, the lowest in the nation.
- Unlike the conventional context, this program does not require new underwriting between the financier and borrower. This is because the Housing Department (HUD) acts as an insurance intermediary.
There are two implications of this government-insured scheme that you will get when you apply:
- 1. Ability to Prepay With No Penalty.
Because of its guarantee status, FHA mortgage Florida helps you to pay funds earlier than the 15-year or 30-year amortization with no penalty. There is a penalty in a commercial setting.
- 2. Prerogative to Pay Late with No Penalty
Because the government guarantees to repay part of the balance in case of a breach, then it applies that late payment, under justifiable circumstances, does not attract a post-payment penalty.
How Much Can I Borrow?
Though the Federal Housing Administration does not set the selling limit for a home, it nevertheless caps the amount you can borrow for FHA mortgage FL based on a number of factors:
- County of residence: High-cost counties like Broward have greater borrowing limit, currently at $423750, than most average counties, including Alachua, whose rates are like those of the national median at $271050.
- Size or design of Residence: A single-unit home attracts an average borrowing amount of $271050 while a four-unit one attracts the lowest median amount of $521250.
Choose Suitable Interest Rate Plan
We recommend three interest rate patterns to choose for FHA mortgage Florida. These include:
- A fixed interest rate for 30 or 15 years. It is a safe bet for long-term amortization because it never alters over time.
- A variable interest rate for refinancing. This is the best choice for borrowers who want to refinance an existing scheme into a lower rate, especially from a 15-year fixed to a 30-year scheme.
- FHA mortgage FL also allows you to go for an Adjustable Rate Mortgage (ARM) for repairs. This is commonly known as FHA 203(K), allowing you to use equity over the short-term to do residential revamping.
Now is the best time to apply for FHA mortgage Florida. Not only will you pay a low monthly premium, but a negligible down payment of just 3.5% of the entire borrowing amount.