Are There Good or Bad Loans?

By
Mortgage and Lending with Stratis Financial

FHA loans are bad because they have PMI.

FALSE.

There are no good or bad loans; it depends on what’s right for you. I have client who recently called to refi. Their interest-only loan was about to become principal and interest with DOUBLE the payment they currently pay ($980 to $1900). They also had been turned down by 2 banks, who charged them for appraisals that came in lower than what they needed. But we were able to refinance their home under the FHA program with only 2.25% equity.

Yes, they were almost at 100% debt to value (at least not upside down anymore). So is the program bad? No – it allowed them to stay in their home for only $200 more than they currently pay on a No-Cost refi at 3.5%, 30 year fixed.

 

Comments (1)

Kevin Morris
Berkshire Hathaway HomeServices Hodrick Realty - Danville, PA
Real Estate agent serving danville and surrounding

Thank you for the post Athena. I agree that there is no such thing as a bad loan. They all serve a purpose and some are right for a client and some arent. 

Mar 22, 2016 03:16 AM