FHA Loans: FHA Mortgage Rates Remain Excellent, MI to 2.25
By: Ed Ferrara
Apr. 12, 2010 (FreeRateUpdate.com) – FHA mortgage rates are still excellent. Despite reports of rising mortgage rates, many of them based off last week’s Freddie Mac survey, 30-year fixed FHA loans remain available at 4.75% to well-qualified consumers paying a standard .07 to 1 point origination as verified by FreeRateUpdate.com research of wholesale lenders’ rate sheets. The FHA 30-yr fixed rate held under 5% even as conventional 30-yr rates edged up to 5% during short periods of time throughout the beginning of April.
FHA 15-yr fixed loans remain available at 4.5%, and the FHA 5/1 ARM at 3.75.
Despite somewhat lower interest rates for FHA mortgages, APR is much higher because of higher fees. MI, a premium charged at closing of an FHA loan was boosted from 1.75 to 2.25% of the loan amount on April 5th.
Home-buyers have just until the 30th of this month to take advantage of an up to $8,000 I.R.S. tax credit, which on FHA loans is applicable toward closing fees.
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