Articles Tagged With: FHA Interest Rates

March 6, 2024

Low Down Payment Home Loans

Many potential homeowners are intimidated by saving up for a down payment. But resources are available that make getting your down payment money together easier, including down payment grants and low down payment mortgages like the FHA home loan program. What do you need to know about low down payment loans? FHA Home Loan Down Payment Rules FHA loans only require a 3.5% down payment for borrowers who qualify with FICO scores of 580 or better (FHA standards; lender standards will also apply). Where Does Your Down Payment Money Come From? FHA loans allow you to pay your own down payment or receive help with a down payment grant or gift funds. FHA loan rules require the source of your down payment funds, including gift funds, to have proper sourcing, | more...

November 27, 2023

Home Loan Interest Rates Back Away From 8%

By Joe Wallace

In November 2023, mortgage loan rates came uncomfortably close to the 8% range. Since then rates seem to have backed away, with incremental improvement. Is this the time for some house hunters to make their move? The short-term gains mentioned above may benefit anyone ready to make a deal. But what about those who need more time? In such cases, you should not read too much into these rate adjustments until there’s a longer history of consistently lower rates. FHA Home Loan Mortgage Rate Trends Day to day or week to week, home loan rates can alternate between trends moving suddenly higher or lower, but over the long term, such moves won’t mean indicate much until there is a consistency in the rates over a longer period of time. For | more...

August 15, 2023

FHA Loan Policies: Interest Rates

By Joe Wallace

When you apply for an FHA loan, one of the most important questions to ask is about interest rates. You want to know how much, over how long, and what options are open to you in terms of fixed or adjustable-rate mortgages. FHA loan rules printed in the FHA Single-Family Lender’s Handbook include a section about interest rates. While the FHA does not set or regulate the interest rates on FHA mortgages. That’s between the lender and the borrower. FHA rules do require the rates to be customary and reasonable but the rulebook does NOT list numbers. FHA loan interest rate policy is basically a hands-off policy. FHA loan rules say that typically under “all currently active FHA single-family mortgage insurance programs,” the borrower and the lender negotiate the interest | more...

May 4, 2023

Interest Rate Issues And Your FHA Mortgage

By Joe Wallace

How high can mortgage loan interest rates go? The highest mortgage rate in American history may have been recorded at a whopping 18.45%. That rate was for a 30-year fixed-rate conventional mortgage in 1981. And what about the lowest mortgage loan interest rate? That may have been the rate we saw in December 2020; 2.68% for a 30-year fixed-rate mortgage, according to Freddie Mac. What influences mortgage loan interest rates? Not the FHA or HUD; these two agencies do not set or regulate FHA home loan interest rates. But other things do affect the rates, indirectly or not: Fed actions to shore up the U.S. economy (more indirectly), investor reaction to those efforts (more directly than Fed acts), whether or not the economy is growing or shrinking, etc. Some Shouldn’t | more...

March 24, 2023

FHA Loans Compared To Conventional Mortgages

By Bruce Reichstein

If you aren’t sure whether to apply for an FHA loan or a conventional mortgage to purchase or refinance your home, there are some comparisons you can make between FHA and conventional loans. For some, 2023 is a year to make the jump from renting to owning, and if you are thinking about your options, it’s crucial to make informed choices. Don’t pull the trigger on a new loan application without comparing the features of different types of mortgage loans, government-backed and conventional. Even if you decide not to choose an FHA mortgage in the end, making the most informed decision you can is paramount. Down Payments The mortgages with the lowest down payments are USDA loans and VA mortgages, which both feature a zero down option. Some conventional loan | more...

June 3, 2022

What Is An FHA Loan Rate?

By Joe Wallace

What Is An FHA Loan Rate? The interest rate that is charged on your 15 or 30-year FHA mortgage. There are some facts you should know about FHA loan rates, discount points, and how the rates may vary. FHA Loan Rates Are Set By The Lender Technically speaking, the mortgage loan interest rate on your loan is something you negotiate with your loan officer. Your access to the most competitive FHA loan rates will be determined by your FICO scores and other financial qualifications. The better your FICO scores are, the more competitive the interest rate offered might be. If you are worried about your FICO scores ahead of your home loan application, begin credit monitoring and work to maintain or establish a record of on-time payments for all your | more...

February 7, 2022

What You Should Know About FHA Mortgage Loan Rate Lock Agreements

By Joe Wallace

What should FHA home loan applicants know about the practice of mortgage interest rate lock commitments? This is an important detail of your home loan and it’s best to know how the interest rate lock agreement works ahead of time so you know how and why this part of the mortgage loan process works. What Is An FHA Mortgage Loan Interest Rate Lock Agreement? An interest rate lock protects a borrower from the daily mortgage rate fluctuations that happen naturally due to investor behavior, or other market forces that can change rates. An interest rate lock commitment is not automatic; it must be formally agreed to in writing between the borrower and the lender. An interest rate lock commitment does exactly what it sounds like it does-the lender and borrower | more...

July 28, 2021

FHA Loan Limits: Fact and Fiction

By Joe Wallace

When it’s time to commit to buying a home, you’ll need to know what the conforming loan limit for the county where you want to buy the home is for the current year. FHA loan limits in 2021 are determined annually and occasionally there is an update posted during the year when circumstances warrant. That’s one reason to investigate the loan limits early in the new year after they change–you don’t really know if they have changed or not until you check or are told by a lender or other authority what the going loan limits are. Fact: FHA Loan Limits Vary Depending On The Market Some counties are located in high-cost areas and have subsequently higher FHA loan limits than typical-cost or low-cost areas. Some housing markets have loan | more...

July 8, 2021

Worried About FHA Home Loan Interest Rates?

By Joe Wallace

What forces affect FHA home loan interest rates? If you are worried about getting the best FHA loan rate, you should know what factors go into the mortgage rate you are offered by a participating lender. There are multiple factors that influence rates, some are market forces but some are directly in the borrower’s control–at least in terms of the rate you could be offered. The most important thing to understand about rates–especially home loan interest rates–is that they fluctuate frequently. This means that some aspects of the rate you are offered are beyond your control. Other aspects are in the borrower’s ability to change for better or worse. What do we mean? Your Choices Can Affect The Interest Rate You Are Offered The choices you make as a consumer | more...

June 23, 2021

FHA Loan Rates: Three Tips

By Joe Wallace

What do you need to know about FHA loan rates? The interest rate on your mortgage is an important variable you’ll want to think about early in your planning stages. If you don’t run the numbers on how much your mortgage will cost over the lifetime of the loan, you’re at a serious disadvantage when it comes to planning. Calculating the cost of the loan itself is not the same as calculating your monthly mortgage payment. You’ll want to know the fees and expenses you need to pay up front, but you’ll also want to know how much your loan costs you when the interest rate is applied. How much does your loan cost you each year? Each decade? What is the total cost of the loan once it has | more...