Articles Tagged With: FHA Loan Rates

April 9, 2015

FHA Loan Interest Rates

Many potential FHA borrowers want to know more about the ins and outs of mortgage loan interest rates. When it comes to FHA mortgages, it’s easy to misunderstand the relationship between a participating FHA lender and the FHA itself. For example, some assume that the FHA sets and/or regulates mortgage loan rates (it does not). So if the FHA does not set or regulate the interest rates on an FHA mortgage or refinance loan, who does? The short answer is that the lender sets the rates. The FHA loan rule book only requires that lenders set rates that are “reasonable and customary” based on similar loans. But market forces that affect other types of mortgage interest rates also affect FHA rates. The borrower and lender negotiate the FHA loan rate | more...

March 18, 2015

FHA Mortgage Rate Trends: Large One-Day Drop In Best Execution Rates

By Joe Wallace

On Wednesday mortgage loan rates in general saw a significant drop in the wake of a highly anticipated Fed announcement, which included words some have taken to mean there will be no interest rate increase in the month of April. Some sources are labeling today’s downward move as “the best day of 2015” based on that drop; 30-year fixed rate conventional loan best execution rates are for some extremely well-qualified borrowers coming in at 3.75%, best execution. Borrowers who “floated” into the Fed announcement today were, by all accounts, given a good payoff. That said, those who floated are now being encouraged by many industry professionals to lock, as there is no guarantee that today’s sharp improvement in best execution rates will continue tomorrow or the next day. The lenders | more...

February 26, 2015

FHA Mortgage Rate News: Improvements As Rates Recover

By Joe Wallace

FHA mortgage loan rates had been pushed earlier out of a comfort zone that, best execution, had them at or near 3.25% depending on the lender. After February 14, it seems that mortgage rates in general had entered a time of upward pressure, and FHA loans moved out of their long-held comfort zone and into range of best execution rates between 3.25% and 3.5%. In the last couple of days, mortgage rates have taken a stronger move for the better, with 30-year fixed rate mortgages creeping back from the best execution cliff of 4.0%–rates didn’t actually climb quite that high for 30-year conventional fixed loans, but they approached 3.875% bests execution, which is as close to the 4.0% zone as we’ve seen in some time. But with mortgage rates in | more...

February 12, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

FHA mortgage rates have been trending higher this week, with pressure on rates bringing 30-year fixed rate conventional mortgages up slightly higher every day in February so far. Bond markets and overseas economic news about the European Central Bank have contributed to those rates moving higher, but all the while, FHA mortgage loan rates have remained in a best-execution comfort zone of 3.25%. But that changed on Tuesday after significant upward pressure that changed conventional rates finally pushed FHA mortgage loan rates higher–now found at the time of this writing in a range between 3.25% and 3.5% for the most qualified FHA loan applicants. Best execution rates are not available to all borrowers or from all lenders. Your FICO scores, loan repayment history and other factors will determine your access | more...

February 4, 2015

FHA Mortgage Rate Trends

By Joe Wallace

FHA mortgage loan interest rates have been holding at best execution levels of 3.25% for quite some time, and that’s despite ups and downs for 30-year fixed rate conventional mortgages. Late last week we saw rates for 30-year fixed rate conventional mortgages head, best executionwise, close to 3.5% for the most qualified borrowers. Overseas financial developments have helped keep rates as low as they’ve been–it’s a good idea to pay attention to the situation in Greece and news of the European Central Bank. These are factors that can affect rates in the short term depending on investor reaction to breaking news. On Monday of this week, those rates held steady more or less in spite of some lenders repricing higher, and on Tuesday it looked like the reversal of a | more...

January 23, 2015

FHA Mortgage Rate Trends

By Joe Wallace

Mortgage rates this week were mixed and there has been some volatility that had potential to move the numbers higher–Thursday, for example, was a big day with a quantitative easing program announced by the European Central Bank. That had big potential to move rates depending on investor reaction to that announcement, but on Thursday mortgage loan rates in general held steady. This issue still has the power to affect mortgage loan rates in the U.S. depending on conditions and is a factor worth paying attention to. In general, 30-year fixed rate conventional mortgages are still considered low, even though the best execution rates have moved away from the 3.5% territory we saw earlier for the most qualified borrowers and back into a range that tops out, best execution, at 3.75% | more...

January 17, 2015

FHA Mortgage Rate Trends: 20-Month Lows This Week

By Joe Wallace

Mortgage loan rates this week were described by some sources at “near 20-month lows”. This week mortgage loan rates, best execution, benefitted from some volatility that can and often does bring a correction to push the rates back into more realistic territory. 30-year fixed rate conventional mortgage loan best execution rates approached 3.5% for some extremely well qualified borrowers applying with lenders offering that possibility. However, on Friday a slight correction did come, bringing the best execution rate back up into 3.625% territory. That rate is a best execution rate and is not available to all borrowers or from all lenders. Your FICO scores and loan repayment history will affect your ability to access that rate. Even so, borrowers who were offered higher rates than the best execution numbers still | more...

January 14, 2015

FHA Mortgage Rate Trends: Rates Moving To 2013 Lows

By Joe Wallace

Mortgage loan rates have in general hit some amazing lows in the earliest days of 2015. At the time of this writing mortgage loan rates dipped to lows some sources report not available since May 2013. For some extremely well-qualified borrowers, mortgage loan best-execution rates have actually dipped to at or near 3.5% for 30-year fixed rate conventional mortgage loans. That’s a rate not available to all borrowers or from all lenders–access to best execution rates depends on the applicant’s FICO scores and other financial qualification. But suffice it to say that home loan rates are looking very competitive in 2015 thus far. Many borrowers who can’t access the 3.5% best execution rate may be able to get quoted 3.625% (again, based on extremely well-qualified borrowers with excellent FICO scores | more...

January 10, 2015

FHA Clarifies Mortgage Insurance Premium Cuts

By Joe Wallace

When the FHA announced mortgage insurance premium cuts in the annual, mortgage insurance premium (MIP), there was a preliminary announcement on Thursday January 8th, with details promised to follow. Now the FHA has issued a Mortgagee Letter announcing specifics of those MIP cuts. FHA Mortgagee Letter 2015-01 states, “This Mortgagee Letter (ML) communicates revised annual MIP rates for FHA Title II forward mortgages and provides opportunity for cancellation of existing case numbers in order to utilize the MIP rates contained in the ML.” The new rules are effected for FHA loan case numbers assigned on or after January 26 2015. According to the mortgagee letter, the new FHA policy “reduces the rate for annual MIP for all Title II forward mortgages, with terms greater than 15 years, except; –single family forward streamline | more...

January 7, 2015

FHA Mortgage Rate Trends In Early 2015: Decisively Lower

By Joe Wallace

Mortgage rates in general moved within a narrow range of numbers in 2014, and with the anticipation of the new year, many hoped to see rates take a turn for the better and move below what seemed to be the floor in 2014 for rates. And now in the early days of the new year that seems to be happening. Best execution mortgage loan rates–which are not available to all borrowers or from all lenders–have dipped into the mid three percent range going down to an impressive 3.625% for the most qualified borrowers. That’s the rate for 30-year fixed rate conventional mortgage loans, best execution. That rate is offered to borrowers depending on FICO scores, loan repayment history and other financial qualifications. But what about FHA mortgage loan rates? Are | more...