Rajatheertha Construction & Real Estate News Blog

FHA vs Conventional Loan in 2026: Which Mortgage Is Better at 7%+ Rates? United States | October 23, 2026 A first-time homebuyer wants to purchase a $400,000 house. The buyer has enough savings for a small down payment but wants to avoid exhausting an emergency fund. One lender recommends an FHA mortgage with 3.5% down. Another offers a conventional mortgage requiring only 3% down. The FHA quote appears attractive because of its flexible credit requirements. The conventional mortgage appears attractive because private mortgage insurance may eventually be cancelled. Which is the better deal? There is no single answer for every borrower. At mortgage rates around or above 7%, a relatively small difference in loan amount, interest rate or insurance cost can change the monthly payment. Credit scores also influence pricing and approval differently across the two programs. This article compares actual program requirements and calculates monthly payment examples using the same assumed interest...

How to Remove PMI From Your Mortgage in 2026: The 80% and 78% Rules, Reappraisal and Refinancing United States | October 22, 2026 A homeowner bought a house for $400,000 with a 10% down payment. Because the buyer put down less than 20%, the conventional mortgage required private mortgage insurance. The PMI premium costs $175 every month. Several years later, the homeowner has paid down the loan and the property's market value has increased. Now the homeowner wants to eliminate the $175 charge. Does the mortgage balance need to fall to 80% of the original purchase value? Will PMI automatically disappear at 78%? Can a new appraisal showing a higher home value remove it sooner? Would refinancing be a better solution? All four questions are important because different PMI-removal pathways use different eligibility rules. The federal Homeowners Protection Act gives eligible borrowers specific cancellation and termination rights. Mortgage investors may also provide additional options bas...