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Marvin Said:

How to decide between a conventional v/s FHA loan?

We Answered:

Traditionally FHA loans have been for people with bad credit. Everyone else would do better getting a conventional loan. The conventional loan fees are less. The FHA has upfront and monthly mortgage insurance. The conventional won't have that "double whammy".
FHA also tend to have more "miscellaneous fees" so you pay more in the final accounting.
But FHA allows a lower down payment and only you can decide how much you can drain your bank account in order to own a home..

Jeff Said:

What would my mortgage payments be on this?

We Answered:

My wife and I are building in north Dallas, and here is what we're ending up with (estimates, but have been pretty consistent across lenders):

Price: $139,990
FHA 3% down (about $4200)
Principle about $135,790
Interest Rate: 6.0
Years: 30

Taxes: Our taxes come in at just under 2.8%. Remember, city tax isn't all you have. For instance, we have County, City, School District and MUD. It adds up fast.

With all of that, our payments have been fairly consistently estimated between $1315-$1330 a month.

That is typically about $320-$330/month for taxes, about $80-$100/month for insurance and about $50-$60 for mortgage insurance.

I would guess that when you actually start getting estimates, you'll be looking in the mid to high $1400s.

Marshall Said:

Which of the following are the four elements that are included in the total amount of a mortgage payment?

We Answered:

It's called PITI- or a in this case
Principle, interest, taxes and insurance

Wilma Said:

The Ramsey 3 step bail-out solution?

We Answered:

Yes it looks that easy to me but then the Politicians couldn't get up and beat their chests and claim they made all their buddies lots of money.

Carlos Said:

What home mortgage option would you recommend?

We Answered:

The "best" investment to make these days is to pay down debt or to not assume debt. Putting down a larger down payment means you have less of a chance of becoming upside down. Taking a 15 year mortgage gives you a lower interest rate. If you can swing it, I suggest you do it. As far as investing. Talk to anybody in the market over the past year or two. Go with the 20% down 15 year mortgage. Good luck.