Primemax Mortgage Group

THE BEST TIME TO GET A MORTGAGE IS IN APRIL!

When the monthly rates are averaged and compared to the average over the years no big seasonal pattern emerges. These calculations involve averaging all the January rates and comparing them for the overall average of the annual rates. The calculation is repeated for each of the months. The month with the lowest average mortgage rate, according to the FHA data, is April. May and August were the next lowest, only a hundredth of a percent higher than the April average.

Now, let’s talk about the benefits of an FHA mortgage loan. While federally insured mortgages are less risky to lenders, there are also many benefits that make FHA mortgages attractive to borrowers.

1. While conventional loans do not usually fund housing repairs, FHA mortgages set up an escrow account designated for contractor repairs. The borrower is required to provide estimates for the repair work together with details describing the work needed and the nature of the repairs.
2. Borrowers who may have had some past credit problems may more easily qualify for a FHA loan because the federally backed mortgage insurance makes them less risky to lenders.
3. However, the personal credit history will determine the percentage required for down payment from individual borrowers. Nevertheless, the percentage required for a down payment is usually less than a conventional mortgage.
4. FHA mortgages do not allow penalty clauses for prepayment.
5. Closing costs can be financed with the mortgage and are usually lower than conventional mortgages.