Conventional Mortgages, all the same?
Hi, We are refinancing our FHA ARM loan to a Conventional mortgage.
We are doing this to get rid of PMI, lock our rate, which is the same as a conventional mortgage now, and to be able to handle our taxes ect ourselves (not have escrow account)
So we have never had a "conventional" mortgage. Are all conventional mortgages the same? Do they have the same "rules"?
We can do early payoff, without penalties, which we hope to take advantage of.
The rate is fixed and we have to pay normal closing fees. We have paid off 20% off our house value so, pending the appraisal, we should not have to pay PMI.
Are there any other things I should be checking/asking about?
We are not locked in yet. We just met with the bank mortgage advisor yesterday. I have not physically SEEN the terms of the loan. I asked all these questions. I want to make sure that when I read the terms that I do not miss something.
What would you look for? Or are conventional loans all the same so I don't have to worry about missing something?
We got our mortgage in 2002 and this is our fifth year. We knew when we got the mortgage we would have to refinance to lock the rate. We were betting on the interest rates falling for a couple years and we wanted to take advantage of that. Luckily we bet right and it worked, so we were able to pay off about 20% of the mortgage in 5 years. We are getting another 30 yr mortgage and hope to pay 2x the mortgage every month to pay it off in maybe 12-15yrs. However, we still have the ability to pay less, if needed. (if one of us loses a job or something)
This seems like a suitable plan to us. Is there any reason this is NOT a good plan??
Thanks for all your advice!!