Comparing FHA and Subprime Mortgages

Our FHA Mortgage Lenders will explain to the differences between the FHA home loans and the subprime mortgages that are offered in todayís real estate market. Subprime lenders offer home loans to 70 or 80 cltv in most cases. FHA mortgage lenders are able offer rate and term refinancing to 97% and 95% for cash out transactions.

Subprime mortgage rates remain consistently in double digit rates ranging from 10-14%. FHA mortgage rates range from 6 to 8% with fixed rate terms.

Subprime loans are notorious for imposing large pre-payment penalties for homeowners seeking home refinancing prior to 3 or 5 years.

FHA home loans have no pre-payment penalty, so borrowers have more flexibility to refinance when they see fit.

FHA loans offer better rates and terms than
subprime mortgages can offer these days.

Compare FHA and subprime mortgage loans before refinancing your loans.

FHA Home Purchase Loans are great for people who donít want to make a big down payment, when buying the 1st home.