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FHA Loan Rates Today : Today’s FHA Mortgage Rates Improved

Bruno Mckenzie — Mon, 01 Mar 2010 20:58:54 +0000

Mar. 1, 2010 — (FreeRateUpdate.com) – FHA mortgage rates today are better than last week. Following several improvements in mortgage-backed securities prices, which led to several favorable re-prices by investors, FHA mortgage rates dipped by an 1/8 late last week. The FHA 30 year fixed rate dipped to 4.75 from 4.875. The FHA 5/1 ARM dipped to 3.625 from 3.75. 15 year fixed FHA rates didn’t change and remain at 4.5.

Looking for the lowest FHA mortgage rates? Search local FHA mortgage here.

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ daily to determine the day’s rates. The rates we report are referred to by those in the mortgage industry as “par rates”. Our rates are the rates on any given day that are associated with about 1 point origination. These are the real mortgage rates and are often at least 1/4 below national averages reported by Bankrate.com RATE and Freddie Mac FRE. Consumers often accept rates 1/4 above what they are well qualified for because they are not aware better rates are available.

FHA Mortgage Rates Lower but Fees Higher

It’s important to remember when obtaining and FHA mortgage that you’ll be looking at higher fees. FHA charges it’s own fees that are included in closings costs no matter what bank and or broker you’re working with. One of the fees, MI, is the equivalent of about 2 points. An IRS home buyer tax credit of up to $8,000 good until April is applicable to closing costs. The tax credit is offered on FHA loans only.

Interest Rates: Could Mortgage Interest Rates Rise to 6.5? Some Experts Say Yes (VIDEO)

Ed Ferrara — Wed, 24 Feb 2010 23:47:43 +0000

LOS ANGELES, CA — Feb. 24, 2010 – ( http://www.freerateupdate.com) – Could 30 year mortgage interest rates (Freddie Mac FRE, Fannie Mae FNM, and FHA 30 year fixed rates) rise to 6.5, from below 5, in just a matter of weeks once the Fed discontinues their buying of MBS? Many experts say the answer is yes. While prominently it’s expected mortgage interest rates rise about half a point, the effect of the Fed’s withdrawal from the buying of mortgage-backed securities is unknown.

Looking for the lowest mortgage interest rates? Seach Local Mortgage Rates Here.

What it really comes down to is supply and demand. Banks have continued to originate mortgages at high volume in part thanks to the Fed’s willingness to purchase pools of the mortgages, even at a time when one might consider them too risky an investment. Thanks to the Fed, demand has remained relatively strong and banks who need to sell the mortgages in order to continue funding new mortgages have been able to do just that.

Mortgage-backed securities prices have remained strong thanks to Fed purchases that have kept demand strong. As a result mortgage rates which move the opposite MBS prices, have gone down and remained down. With the Fed out of the picture, who is going to step up and buy these securities? Who, especially right away, would want to? MBS will become quite the risky investment. Who is to say that gap isn’t filled and mortgage-backed securities plummet pushing mortgage rates up 1 full percentage point or more.

This is a possibily. That’s why the Fed has said in the last week, if something like this occurs they may enter back into the MBS marketplace.

Here’s a video discussing this. Click to play.

FHA Mortgage Rates Still Hangin’ with Conforming Mortgage Rates (Fannie Mae, Freddie Mac), Costs High

Sheldon Levene — Fri, 19 Feb 2010 21:19:29 +0000

LOS ANGELES, CA — Feb. 19. (FreeRateUpdate.com) – FreeRateUpdate.com research of wholesale lenders’ rate sheets shows FHA mortgage rates remain nearly identical to conforming mortgage rates, rates of Fannie Mae FNM and Freddie Mac FRE products. Today’s FHA 30 year fixed rate, associated with .07 to 1 point origination (at par), is 4.875%. That’s actually the same as the conforming 30 year fixed and both are 1/8 higher than they were yesterday.

Take that information with caution. A recently raised premium known as MI at 2.25%, paid at closing, as well as fees charged by the FHA jack up costs on FHA loans making their A.P.R. much higher than those of conforming mortgages. That being said, The IRS tax credit of up to $8,000 for home buyers using FHA financing to purchase is applicable to closing costs.

Also though the FHA 30 year fixed rate is the same as the conforming 30 year fixed rate, other products are not. For instance, while the 15 year fixed rate for a conforming mortgage is 4.25%, the FHA 15 year fixed rate is 4.5%.

If you’re considering an FHA loan for the purchase of a home, you may want to consider a higher interest rate. Why? If you go with a higher interest rate you may be able to lower your closing costs and use the cash you keep in your pocket for something else.

To display FHA mortgage rates on your website or blog use our FHA mortgage rates widget.

FHA Low Down-Payments, Low FHA Mortgage Rates Fueling Housing Market

Ed Ferrara — Sun, 14 Feb 2010 20:59:12 +0000

LOS ANGELES, CA — Feb. 14. (FreeRateUpdate.com) – There has been talk, amid rising delinquency rates approaching 10% on FHA insured mortgages, that FHA will increase required down payments to 10, 20, even 30% for those purchasing homes with FHA loans. Despite the fact FHA delinquencies are at a all time high, this talk of a significant increase in FHA down payment requirements is unfounded. FHA has always been offering down payments of as little as 3%, even before the sub prime boom, FHA was there, with low down payment mortgages. It’s how many of our parents, maybe even how you bought your home in the 70’s, 80’s or 90’s. A combination of most importantly low down payments, but also low FHA mortgage rates has been undoubtedly been what is fueling the house market today.

Though banks like Wells Fargo advertise an FHA 30 year fixed, at a rather high 5.5% with an APR of 6.245%, FHA mortgage rates have been just as good as conforming mortgage rates for months. Many banks, like the ones on our local mortgage rate search, offer FHA 30 year fixed rates as low as 4.75%. It’s a given with recently raised insurance premiums, closing costs on an FHA loan far exceed that of a conforming mortgage, but the government tax credit of up to $8,000 available until April can pay a majority if not all the closing fees on your FHA loan.

There’s no doubt it’s FHA loans, with low down payments and low mortgage rates, that have carried the housing market through these trying times. In today’s market, there are very few people that have and or are willing to part with the 20% down payment cash. They key word is cash. Cash rules and it’s unlikely no matter what “steal” is available that a consumer will part with $20,000, $40,000, $60,000, or more to buy a home with financing requiring 20 to 30% down. Until the housing market is at least at a normal sales volume, down payments aren’t chancing on FHA loans.

To display FHA mortgage rates on your website or blog use our free FHA mortgage rates widget.

FHA Mortgage Rates: FHA 30 Yr-Fixed Mortgage Rate at 5% and Climbing

Sheldon Levene — Wed, 16 Dec 2009 17:23:04 +0000

FHA mortgage rates have ridden the wave over the past few weeks dipping to record lows before climbing in the past 2 weeks. The FHA 30 year fixed rate dipped as low as 4.5% almost 3 weeks ago according to FreeRateUpdate.com research of wholesale mortgage lender’s rate sheets. FHA mortgage rates move with conforming mortgage rates but typically differ by at least an 1/8 of a percentage. Recent talk of FHA’s liquidity problem hasn’t ad an affect on FHA loan rates. There is chatter right now that FHA is preparing to announce stricter guidelines and higher down-payment requirements. If that happens it’s sure to have an affect on the real estate market which is just getting going. FHA backed mortgages make up a large percentage of newly originated purchase loans. Some consider FHA the new subprime but the fact is FHA was around way before subprime mortgages. FHA has been requiring little money down since the 70’s and has always required income documentation.

Today’s FHA Mortgage Rates – FHA 30 Year and 15 Year Fixed Rates – 5/1 ARM.

Today’s FHA mortgage rates while up considerably from 3 weeks ago are still historically low. The current FHA 30 year fixed rate is 5%, up from 4.875% to start the week. The current FHA 15 year fixed rate is 4.5%. The current FHA 5/1 ARM rate is 4%, up from 3.875% to start the week. There’s a risk FHA mortgage rates continue to move higher. The Fed meeting at 2:15 PM PST will likely have no affect on FHA loan rates.

FHA Mortgage Rates: FHA 30 Year Fixed Mortgage Rate as Low as 4.5%, FHA Rates Close the Gap.

John Kaloper — Sat, 28 Nov 2009 22:37:10 +0000

FHA mortgage rates are currently at all time record lows as mortgage rates overall have bottomed out heading into the holiday season. The conforming 30 year fixed rate has been a tad lower than the FHA 30 year fixed rate the past few weeks but not any longer. FreeRateUpdate.com research of wholesale lender’s mortgage rate sheets shows the current FHA mortgage rate at 4.5%, 30-years fixed. Despite 4.5% indeed being available through a broker who has access to wholesale lending rates banks continue to advertise a bit higher. Wells Fargo’s 30 year fixed FHA rate is an eye popping 5%, 30 years fixed compared to the 4.75% they offer on conforming 30 year fixed mortgages. Wells Fargo’s FHA 5/1 ARM though is better than their conforming 5/1 ARM with a rate of 3.625% compared to the conforming ARM’s 3.75%. It’s not just Wells Fargo not offering 4.5% or close to it FHA 30 year fixed rates, it’s most of the big banks. They’re obviously looking to pocket the money from the better rates rather than pass it on to the consumer. Why? They are aware most people using FHA loans to purchase homes just want the loan done in time with the least possible money down. Those shopping for conforming mortgages are more focused on the most competitive rate.

Today’s FHA Mortgage Rates

FreeRateUpdate.com researches wholesale lender’s rate sheets directly to get the most accurate and up to the minute mortgage rates. Our research of mortgage rates today shows FHA mortgage rates significantly improved last this week closing any gap there was between FHA and conforming mortgage rates. Today’s FHA mortgage rate 30 years fixed is 4.5%, down from 4.625% and more prominently 4.75% available earlier in the week. Big banks refuse to change their offering on FHA mortgage rates 30 years fixed and are still offering 5% for the most part. Today’s 15 year fixed FHA mortgage rate is 4.5%. Today’s 5/1 ARM FHA mortgage rate is 3.625%. We do not recommend anyone getting a 5/1 FHA ARM unless you are absolutely sure you will not be in both the loan and home in 5 years.

FHA Mortgage Rates Holding Steady – FHA 30-Year Fixed Rate Under 5

Ed Ferrara — Tue, 17 Nov 2009 23:43:02 +0000

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: 30 Year Fixed FHA Loan Par Rate at 5. FHA Loan Rates Vary Bank to Bank.

John Kaloper — Fri, 30 Oct 2009 22:03:29 +0000

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.