Costa Mesa, CA · Member since 2015 · 22 posts · 9 votes
That was the best title that I could fit within the character limit.
My question might seem loaded, but here it goes: If I take out an FHA for 100,000, I have been told I would have to put down a premium of 1.75% ($1750). I have read that this can be financed in as part of the original loan.
My question is this: If I take out a loan with such a premium and finance it as part of the loan, would it have its own specific interest rate or would it just have the same exact interest rate?
By extension, when any premium is said to be financed as part of the loan does it simply become part of loan with the same interest? Additionally, does it also increase the required down-payment?
Thanks again for all of you helping out the newbies like myself.
So it won't even increase the amount owed at the end of each month? That's nice to hear.
The loan amount does increase by the premium amount that is rolled into the loan, so the monthly will increase accordingly. The premium is part of the loan, and has the same interest rate.