Articles Tagged With: FHA Loan Rates

January 2, 2015

FHA Mortgage Rate Trends: The End of 2014

With 2014 now over, many look ahead to the new year’s potential trends for FHA mortgage loan rates and refinance loan rates. But looking ahead also means looking back–what happened at the end of the year is sure to be a factor in figuring out where rates could go in early 2015. Mortgage rates over 2014 moved within a narrow range, but that range was marked by lower rates–when the FHA best execution rate broke below the four percent range and into the high threes, at first some thought it might just be a flash-in-the-pan move soon overtaken by upward pressure on rates. But what was potentially a quick dip into the high three percent range (best execution) turned into a downward trend that ended up in a comfort | more...

November 20, 2014

FHA Mortgage Rate Trends

By Joe Wallace

Since our last report on FHA mortgage rate trends, we’ve seen a general downward trend in mortgage interest rates, but with the range we’ve been reporting (best execution) remaining. Borrowers have in some cases seen the gains reflected in lower closing costs rather than the actual interest rate changing itself, while other borrowers may indeed have experienced an adjusted interest rate based on improvements than sent best execution rates back into month-long lows. 30-year fixed rate conventional mortgages have, best execution-wise, remained in their range between 4.0 and 4.125%, though some very well qualified borrowers may have gotten access to sub-four percent rates depending on the lender and the timing of the rate lock. But that doesn’t mean that all borrowers had that option–the rates we report on here are | more...

November 12, 2014

FHA Mortgage Rate Trends: Up and Down

By Joe Wallace

Since our last report on FHA mortgage rate trends, we’ve seen some ups and down with mortgage loan rates in general, but the overall trend seems to be upward. Last Friday was a highly anticipated jobs report, and ahead of that last Thursday we saw rates hold steady. After the report came out on Friday mortgage loan rates did gain back some of the ground lost earlier in the week, but come Monday those gains began slipping away again. Tuesday was Veterans Day so markets were closed and there was no rate movement to report–but on Wednesday it was a bit of false hope to start the day with rates beginning stronger but ultimately weakening by day’s end. What does all this mean? At the time of this writing, 30-year | more...

What you should know about FHA 203(h) Loans For Disaster Victims

October 29, 2014

FHA Mortgage Rate News: Rates Move Higher After Fed Announcement

By Joe Wallace

Our discussion last week of mortgage rate trends going into this week’s Fed announcement included the notion that mortgage rates might retreat into a defensive posture–defensive as in, little change (if any) in the two trading days leading into Wednesday’s scheduled announcement by the Fed. When the word came from the Fed on Wednesday, talk included the end of the Fed’s Quantitative Easing (QE) program. QE saw the government putting billions of dollars into markets in order to help stabilize the nation economically. Those investments affected mortgage rates, but when talk began of tapering off the program and eventually ending it, investor reaction was negative. Mortgage loan rates can and did move higher with more talk of the ifs and whens of the end of that program. Today following the Fed | more...

October 23, 2014

This Week’s FHA Mortgage Rate Trends

By Joe Wallace

This time last week, we reported mortgage rates headed for lower territory thanks to a variety of factors including market volatility. This week, the difference was definitely noticeable, with rates holding steady or edging slightly higher, but still maintaining at-or-below 4% rates for 30-year fixed rate conventional loans (best execution). FHA rates held steady at 3.5% best execution. While FHA mortgage rates have managed to stay at 3.5% this week, how long that could number may persist? Next week is poised to be an important one for rates in the short term. Why? There are a number of reasons why conditions might lead interest rates upward, but one of the most anticipated things scheduled for next week is the Fed announcement–a regular occurrence that can and often does push rates depending on | more...

October 21, 2014

FHA Mortgage Rates and Recent Trends

By Joe Wallace

Is now the right time to refinance your FHA or conventional home loan? Is now the best time to look into a new purchase FHA mortgage? Recent FHA loan rate trends do seem to point that way with rates having fallen into 16-month lows recently. Mortgage rates, as we reported last week, took a big move lower pushing FHA mortgage loan interest rates down from the previously long-held 3.75% range down to 3.5% (best execution). That means borrowers who have outstanding financial qualifications may find rates at or near these numbers available, while borrowers who may not necessarily qualify for the very best rates may also find lower-than-usual FHA rates while this trend lasts. Monday’s FHA interest rate trends had the recent move to 3.5% (a “best execution” rate available | more...

October 3, 2014

FHA Mortgage Rate Loan Trends For The Week Ending Friday October 3 2014

By Joe Wallace

For entire year to date, September was one of only a handful of months that had consistently upward movement in mortgage loan interest rates. Many house hunters and investors welcomed the end of September after some steady upward pressure on rates that finally started slacking off toward month’s end. FHA mortgage rates at the end of the month have seen small improvements but this week marked a push back to the summer’s lows. FHA mortgage rate trends were up and down the week ending October 3, 2014; rates pushed slightly higher on the last day of the month, but the first day in October brought with it more improvement in rates that had started off small in the second half of September. The first day of October helped erase most, if | more...

August 28, 2014

FHA Mortgage Rate News For Thursday August 28 2014

By Joe Wallace

FHA mortgage loan rates have been lower this week in small increments, and while many borrowers could see the difference in rates reflected in their closing costs rather than the actual rate number itself, the move lower does benefit the borrower. Mortgage loan rates in general have approached their lowest levels of the year (best execution), and we’ve seen movement both upward and downward this summer only in a narrow range. The causes of this summer’s rate changes are varied, including breaking financial news from Europe. Add to that investor reaction to the Ukraine crisis, plus the situation in Gaza. At home, bond auctions, economic data releases such as the GDP and Employment Situation Report and other financial information have also influenced rates within the narrow range we’ve seen all | more...

March 5, 2013

FHA Loans and Refinance Loans: Interest Rates and Fees

By Joe Wallace

What do you, the borrower, need to know about FHA loan fees for new purchase mortgage loans and home loan refinances? It’s a big issue, but there are some basics to understand as you’re planning your next move in the search for a new home or a refinance loan rate. First, the FHA does not set interest rates on refinance loans or mortgage loans. It does require them to be appropriate, reasonable and customary for the market, but the job of negotiating interest rates is one the borrower and lender work on together. The FHA loan rulebook says as much in Chapter One of HUD 4155.1: “Under all currently active FHA single family mortgage insurance programs, the borrower and the lender negotiate the interest rate and any discount points.” Another | more...

September 29, 2011

FHA Loan Questions: What Is The Maximum For An FHA Streamline Refinance Loan?

By Joe Wallace

FHA rules for Streamline Refinancing Loans changed in 2011, and there are updated guidelines borrowers and lenders need to know when trying to determine what the maximum loan amount might be for a particular borrower. Under the old rules (for cases assigned before April 18, 2011) there were two sets of guidelines. One set was for FHA streamline refinancing without an appraisal. For these loans, the old system allowed refinancing maximums that did not exceed the principal outstanding balance, minus any up front mortgage insurance premium refund, plus the amount of the new up front mortgage insurance premium (UFMIP). The old FHA streamline limits also included a “with appraisal” maximum which was based on the lower of the outstanding principal balance minus any UFMIP refund, plus closing costs and prepaid | more...