Although there are many major benefits when choosing an FHA 15 year fixed rate mortgage, there are a few other items to consider when weighing your options. When comparing this option to a 30 year option, your monthly payment may be significantly higher. For a lower monthly payment, extending your note to 30 years may be more viable in that regard. 

Another item to consider is that FHA mortgage rates can be higher than the average conventional mortgage rates. This can mean that comparatively, your monthly payments could be a bit larger which would leave you with less money for other moving expenses. Even with a higher rate or monthly payment, paying off your mortgage sooner with this loan option can still be very ideal and save you money in the long run. Instead of 30 years of payments, you are only paying on your home for half of that time.

What is generally required for an FHA 15 year fixed rate mortgage? One of the first requirements for this loan option is a credit score of 500 or more with the down payment in the amount of 10 percent. With a higher credit score, you may qualify for a lower interest rate. 

Another requirement for an FHA 15 year fixed rate mortgage is mortgage insurance premiums. There are two ways to pay for the (MIP) Mortgage Insurance Premiums. One way is to pay upfront fees at closing or you can pay annually over the course of the loan payments. When configuring the annual premium option, these items are considered: the amount of your loan, the term of your loan, and the amount of your down payment.

When deciding if the FHA 15 year fixed rate mortgage is for you, there is a lot to consider when making this important decision for you or your family. If you want to find the loan that’s right for you, give us a call today to speak to one of our highly qualified loan officers today! Let’s get you in to the home you deserve!