Do put some thought into your mortgage...You'll be glad you did later on

I have a feeling this is something that many buyers constantly wonder about but rarely verbalize.  Aside from short and long term costs of the loan, there is more to both than meets the eye.

Take, for instance, the possibility of a big promotion in another city only two years after you moved in to your new Columbus home. If you put down 10- 20% on your conforming loan, you’re in a better position to sell and move. Dan Green explains the basic long and short term costs from his Mortgage Reports blog….

FHA And Conforming Mortgages : Key Differences

People tend to assume that a 30-year fixed is a 30-year fixed is a 30-year fixed.  The market doesn’t work that way.  It’s like saying a car is a car is a car. There are traits that make each product unique.

Yes, both the FHA and Fannie/Freddie back a product called the “30-year fixed rate mortgage”, but beyond their identical, 30-year amortization schedules, the products are hardly similar.

As examples:

• FHA mandates mortgage insurance on all loans. Fannie and Freddie do not.
• FHA mortgage insurance lasts 60 months. Conforming mortgage insurance lasts until there’s 20% equity in the home.
• FHA mortgages can be assumed by a subsequent, qualified buyer. Conforming mortgages cannot.
• FHA-backed homes must be free of defects and “issues”. Fannie/Freddie homes may have small defects.
• Fannie/Freddie require loan-level pricing adjustments. The FHA does not.

And, lastly, the FHA requires a minimum downpayment of 3.5% on a purchase. Fannie and Freddie want to see 5 percent, at least; oftentimes, 10 percent.

Lots more great information on this post which is continued here….