FHA Loans
FHA Mortgage Rates Holding Steady – FHA 30-Year Fixed Rate Under 5
Following reports of FHA not meeting the government requirement for reserves FHA mortgage rates have continued to improve. The trend lately has been for the major banks such as Bank of America, Wells Fargo, and Citi to offer FHA 30 year fixed rates at 5% despite lower FHA mortgage rates readily available. Why? It’s probably because shoppers for FHA mortgages are down payment conscious and not necessarily worried about securing a rate below 5%. FHA mortgage rates have trended downward along with conforming mortgage rates for the past few months. A week ago it seemed FHA mortgage rates were better than conforming rates; however, that trend was short lived as conforming mortgage rates have dropped to 4.625% 30-years fixed at par.
Today’s FHA Mortgage Rates
The best way to determine accurate mortgage rates is by studying the wholesale mortgage market. FreeRateUpdate.com research of wholesale mortgage lender’s FHA rates shows no change for today. That’s in line with the lack of economic reports released today and flat 10 year treasury yield. Today’s 30 year fixed FHA mortgage rate is 4.75% at par, though most big banks are offering nothing less than 5% in their advertising campaigns. Today’s 15 year fixed FHA mortgage rate is 4.5%, about a 1/4% above conforming mortgages. Today’s FHA 5/1 ARM rates are as low as 3.875% at par. Par rates are lowest rates without buy down points.
FHA Mortgage Rates: FHA Mortgage Rates Hold Near Record Lows
FHA mortgage rates continued to hold at near record lows this week. Prices of Residential Mortgage Backed Securities which move opposite FHA loan rates moved upward this week despite weak demand at the treasury bond auctions held by the Fed. FHA reserves required by the government fell below minimum levels it was announced this week. FHA says they are not in need of a bailout and this issue continues to be a non factor as far as FHA mortgage rates are concerned. Though there’s been lots of talk about FHA overhauling down payment requirement and their underwriting guidelines it continues to be just that, talk. FHA mortgages are credited with saving many markets from collapse across the U.S. and account for an increasingly large percentage of all new mortgages.
Current FHA Mortgage Rates
Today’s FHA mortgage rates are near record lows as the FHA 30-year fixed-rate continues to mirror that of conforming mortgages. The most accurate way of determining current mortgage rates is by taking a look directly at wholesale mortgage lender’s rate sheets. FreeRateUpdate.com research of wholesale mortgage lender’s rate sheets shows the following.
The current FHA 30-year fixed-rate is as low as 4.75% at par. Most banks are offering FHA 30-yr fixed rates of 5% but we did find lender’s pricing 4.75% at par. The current conforming 30-year fixed-rate is 4.75% at par as well.
The current FHA 15 year fixed mortgage rate is 4.5% at par, slightly higher (.25%) than that of conforming mortgages. The current 5/1 ARM FHA rate is 3.75%, also a 1/4% higher than that of conforming mortgages.
The difference between FHA and conforming mortgages is?
There’s 2 MAJOR differences in FHA mortgages and conforming mortgages. Currently the biggest difference is in purchase loans and the required down payment. While conforming loans require 20% down FHA mortgages can be obtained with as little as 3% down. The second biggest difference is in closing fees. Closing costs on FHA mortgages are considerably higher than that of conforming loans.
FHA Mortgage Rates: 30 Year Fixed FHA Loan Par Rate at 5. FHA Loan Rates Vary Bank to Bank.
FHA loan rates were steady this week amid several up and downs in the Residential Mortgage Backed Securities Market. FHA mortgage rates for the most part mirror conforming mortgages; however, FHA offers several programs and therefore rates vary. Closing costs on FHA loans are always higher than comparable conforming mortgages because PMI (mortgage insurance) is collected up front. In taking a look at Wells Fargo's FHA loan rates we came to the conclusion they're not competitive. We did find another major lender, HSBC, offering competitive FHA mortgages. Just a heads up for FHA loan shoppers, FHA loan rates vary greatly from lender to lender so shop dilligently.
Current FHA loan rates
Current FHA loan rates as mentioned above are comparable to conforming mortgage rates. We found most lender's offering 30 year fixed FHA loans at 5 percent at par. A handful of lenders have a par rate of 4.875 percent. Par rates are lowest available interest rates by a lender without requiring the borrower to pay additional points and fees known as a buy down. Current 15 year fixed FHA loan rates are at 4.375 percent at par, again it's likely the lowest 15 year fixed FHA rate you'll find is slightly above this. Currently FHA 5/1 ARM's are available at 4.25 percent at par. The 5/1 ARM varies from lender to lender and you can probably hunt one down in the 3's.
FHA loan changes
Recently congress extended the increased FHA loan limits through 2010, that's one worry out of the way for potential home buyers. The Obama administration announced their suppport for an extension of the $8,000 tax credit set to expire. FHA's top dogs rebut reports FHA is headed for too big to bust status denying they'll need a bailout.
