FHA Mortgage Rates Steady, Still at low
By: Ed Ferrara
June 16, 2010 (FreeRateUpdate.com) – FHA mortgage rates are steady and still at a record low. 30-year fixed FHA loan rates are at 4.375% for well-qualified borrowers paying a standard .07 to 1 point origination fee. 15-year fixed FHA loans are being obtained at 4.5% with zero origination fee. 5/1 ARM FHA rates are at 3.5%.
Despite rates as low or lower than those of conforming mortgages, you’ll notice the APR on an FHA loan is much higher. That’s because of MI, which is 2.25% of the amount financed and charged at closing much like an origination fee, as well as other FHA fees not charged on conventional mortgages.
Despite tigher FHA underwriting guidelines, FHA loans remain available with minimum down-payments of just 3.5% making then the preferred loan for purchasing a home at a time when consumers want to keep as much cash on hand as possible.
FHA mortgage rates are unchanged today. MBS prices, which drive conforming and FHA loan rates, are up today +7/32 (FNMA 30-yr 4.0 at 99.22).