Is FHA always better? I don't see MyCommunity mentioned much and I'm wondering why.
Also, I picked up a financing sheet from an open house and although the interest rate on the FHA loan is lower, the P&I payment is higher. I imagine they left out some important details on this but..
For example - both with 3% down,loan amount= $87k
FHA interest rate = 6.75%, P&I = $771
MyCommunity - interest rate = 7.5%, P&I = $609
The PMI on the MyCommunity was about 5 bucks higher but that is sort of negated by the fact that P&I is lower by ~$160.
These are outdated, just for example. The only quirks I remembered seeing with MyCommunity was the income limit and a homebuyer's class/counseling required. Hm, for loan applications starting 1/1/09. Does that mean if I apply for pre-approval now I'm exempt from the education? Heh..
Those numbers are way off
There is no way the PMI is that different in fact FHA MI is less than the My community
The My community added some interest rate adjustments making it less than the best option so you wont hear about it much
as you have pointed out there is a big difference in rate.
Calculating MI fir FHA is .55% per year
My Community .64%
not sure where you got the numbers but you may want to double check them for accuracy
on an 87k loan FHA MI would only be about $40 a month