FHA Mortgage Rates: 30-Yr Fixed FHA Loans Available at 4.25%
By: Ed Ferrara
July 6, 2010 (FreeRateUpdate.com) – 30-year fixed FHA loans remain available at a record low 4.25% for highly qualified borrowers paying 1 point origination. This rate, an all-time record low, is the same rate available on a conventional mortgage for well-qualified borrowers paying a standard origination fee of .07 to 1 point. Even though the same note rate on an FHA mortgage is available, APR is higher because of the MI charged at closing on an FHA loan, and other FHA fees.
FHA loan rates, just like the interest rates on conforming Freddie Mac and Fannie Mae insured mortgages, are driven primarily by mortgage-backed securities prices, which continue to do well during this tough time for the global economy.
FHA loans have a minimum down-payment of just 3.5% required in most cases, making them most popular among those purchasing a home.
The government is making moves presently to reinstate the home-buyer tax-credit, which was previously applicable toward closing fees on an FHA loan, helping to limit the out of pocket for consumers purchasing.