What is the FHA Loan Interest Rate Today?

FHA Loan Interest Rates change daily, but we’ll provide you with the most current interest rates available for FHA loans.

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FHA Loan Interest Rates

The FHA loan interest rate today can vary depending on a number of factors, and it is important to know what these factors are to get the best rate possible. The FHA interest rate today depends on the market, the borrower’s credit score, the size of the down payment, and the type of loan.

How Are FHA Loan Interest Rates Determined?

FHA loan interest rates are determined by three main factors: the borrower’s credit score, loan term, and mortgage program. borrowers with a higher credit score usually qualify for a lower interest rate. In general, borrowers with lower credit scores or who choose shorter loan terms will end up paying higher FHA mortgage rates.

Loan term is the length of the loan, typically 30 years. Mortgage program is the type of loan you’re applying for, such as fixed-rate or adjustable-rate. FHA loans typically offer lower interest rates than conventional loans because they’re backed by the government. However, this also means that they typically have stricter eligibility requirements.

What Factors Affect FHA Loan Interest Rates?

There are several factors that can affect FHA loan interest rates. These include the borrowers credit score, length of time in business, down payment amount, and other factors.

Current FHA Loan Interest Rates

FHA loan interest rates are typically lower than conventional loan rates. This is because the federal government insures the loans, so lenders are more willing to take on borrowers with lower credit scores and rates. FHA rates may be slightly higher than what you’d get from a traditional lender, but they’re still lower than most conventional loans.

30-Year Fixed-Rate FHA Loan

The most popular FHA home loan is the fixed-rate loan known as the 203(b). It often works well for first time home buyers. It allows individuals to finance up to 96.5% of their home loan and helps to keep down payments and closing costs.

15-Year Fixed-Rate FHA Loan

Today’s Fifteen Year Mortgage Rates
Product Interest Rate APR
15-Year Fixed-Rate FHA 3.875% 4.014%
20-Year Fixed Rate 4.500% 4.676%
25-Year Fixed Rate 5.250% 5.484%
30-Year Fixed rate 6.000% 6.173%
These rates are current as of November 15, 2019 and are subject to change at any time without notice. The Annual Percentage Rate (APR) is based on a $250,000 loan amount and may include up to 3 points paid at closing by the borrower. Points do not affect the interest rate but may lower the monthly payment and/or increase the number of years required to repay the loan balance. Actual interest rates and terms are determined by credit history, loan type and collateral property location, so please ask your Loan Officer for today’s most current interest rates and terms for your specific loan situation.

5/1 Adjustable-Rate FHA Loan

The most popular FHA home loan is the fixed-rate loan known as the 203(b). It often works well for first time home buyers. It allows individuals to finance up to 96.5% of their home loan and helps to keep down payments and closing costs.

How to Get the Best FHA Loan Interest Rate

Improve Your Credit Score

FHA Loan Interest Rates. How to Get the Best FHA Loan Interest Rate Possible. What is the FHA Loan Interest Rate Today? Borrowers with good credit (640 or higher) can expect excellent rates from the FHA. Borrowers with bad credit will have to put down a larger down payment (perhaps 30 percent), and will have higher rates. HUD’s general rule is that borrowers should expect to pay two percentage points more for a bad credit mortgage.

Shop Around

Interest rates on FHA loans largely mirror the rates of conventional mortgage loans over time. Over the past year, FHA interest rates have maintained a spread of 1-4 basis points over comparable conventional mortgages before widening to 8 basis points in April.

Compare Mortgage Offers

The best way to get the best interest rate for your FHA loan is to compare mortgage offers from multiple lenders. By shopping around, you’re able to see who is offering the most competitive interest rates. While interest rates may be similar from one lender to the next, other fees and charges could vary considerably. So, it pays to compare!

To compare mortgage offers, you can contact each lender directly or get in touch with a mortgage broker. Mortgage brokers have access to a large network of lenders, which gives them the ability to shop around on your behalf and find the best deal.

Once you have a few mortgage offers in hand, it’s time to compare them side-by-side. Look at the interest rate and compare it to the other offers you have. But don’t stop there! Make sure to look at all the fees and charges associated with each loan. This will help you get a true picture of which lender is offering the best deal.

When you’ve found the best offer, it’s time to apply for your loan. The process is relatively straightforward, but it helps to have an experienced loan officer by your side. They can answer any questions you have and help make sure your loan application is processed quickly and efficiently.

When to Lock in an FHA Loan Interest Rate

FHA loan interest rates can change daily, so it’s important to stay up-to-date with the latest rates. This section covers when you should lock in an FHA loan interest rate to get the best rate possible.

When You Have an Accepted Mortgage Offer

If you have an accepted mortgage offer, you can lock in an FHA loan interest rate by paying 1.0% of the loan amount to your lender. This fee is generally added to your loan balance. Once you pay this fee, the lender will guarantee your interest rate for up to 60 days while your loan is being processed and closed.

When You Have a Mortgage Rate Lock-In Agreement

Once you have a loan estimate from your lender, you’ll have a good idea of the interest rate you’re likely to pay. If that rate is acceptable to you, you may want to lock it in. Locking in your interest rate means that your lender agrees to give you that rate, no matter what happens with market interest rates during the time between when you apply for your loan and when you close on it.

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