What is the difference between PMI and FHA?
PMI (LINK TO TOP) and FHA (Federal Housing Administration) insurance are similar in concept however; FHA insurance is a government-administered mortgage insurance program. Therefore, it has some restrictions including lower maximum regional loan limits, higher prices, longer approval time, and fewer payment plan options. However, unlike PMI, FHA insurance lasts for the duration of the loan. Balloon Mortgage Balloon mortgage is a loan that is amortized for a longer period of time than the term of the loan. There are a variety of term lengths but, typically, this refers to a 30-year, fixed-rate loan and a term of five to seven years. At the end of the term, the remaining amount of the loan is due. The final lump-sum payment is called the balloon payment. You may want to refinance (REFINANCE SECTION) to settle your balloon payment. In addition, many companies have conversion options at the end of the term that you may want to discuss with your mortgage professional. Graduated Payment Mort
