Question by Keeping Secrets: What are the repayment term options for an FHA loan? Are there prepayment fees?
Are there options other than 15-year or 30-year loans? Can I get a 20-year FHA loan? Do FHA loans typically have prepayment fees? Would I have an option to make bi-monthly payments?
Please indicate your source of information if possible. I want to make sure I have as up-to-date and accurate information as possible. Thanks!
Best answer:
Answer by cactusgene
There are NO early prepayment penalties on FHA loans. But I would recommend you get a standard 30 year FHA mortgage and then make extra monthly principal payments of about 15% of the monthly payment amount and you effectively cut the mortgage down to a 20 year loan and also preserve the possibility of not making those extra payments if you ever get into a tight spot.
http://www.fhaloan.com/fha_article.cfm?id=65
http://www.ehow.com/info_7754849_fha-prepayment-penalties.html
Give your answer to this question below!
For an FHA Loan, you have 30 year, 25 year, 20 year and 15 year term options for repayment. You also have the option for a 5 year adjustable rate mortgage (ARM) if you would like to go down that path.
The beauty of an FHA Loan as that there are NO prepayment fees or penalties.
As for the bi-monthly payments, you do indeed have the option to make your payment at any time.
Hopefully this helps you out with your big decision!