A fixed rate remains constant for the life of the loan. Mortgages with interest rates that fluctuate are usually in the form of an arm. With a 3 year arm for example, you have the introductory fixed rate for 3 years then you may adjust. Adjustments are capped at 1% a year, 5%max for the life of the loan for FHA and 2% a year, 6%max for the life of a conventional loan. Check with your lender for current guidlines.

Fri May 23 2008, 08:26

Hi JC, they are fixed as mentioned, but the rate you were quoted may not be fixed until you lock your rate with a lender and then it has an expiration period. Depending on the lender..it could be 30days up to 60 but that is something to check with the lender to see if the rate is locked. Once locked your rate will note change on a fixed rate FHA loan.

Hope this helps.

Sincerely,
Gary White, Broker

Fri May 23 2008, 04:44

It's always a fixed. I think you are thinking of a home equity loan. They fluctuate with the prime rate.

Sun May 18 2008, 20:28

JC,

It is wonderful that you are doing so much research on loan rates. Ultimately, in this market, everybody will be offering you something similar in the way of rates.

When you do choose a loan product and rate, make sure that the lender you choose to provide that loan to you has a solid reputation as well.

Thu May 15 2008, 07:33

Good Michelle, must be old age setting in for me. LOL

Yes, If you qualify there would be an even lower interest rate. Ask your lender.

Wed May 14 2008, 16:01

Hi JC,
I agree with Gary's reply. However, 6% sounds very good to me, based on some of my client rate quotes on FHA- preapproval recently! Have you checked into MSHDA, they just raised income levels to qualify. ICCF does a great job with MSHDA 616-336-9333.

Wed May 14 2008, 13:15

Jc, This will vary and surprisingly even amoung lenders.

I suggest looking at 6 percent but preparing for 7 percent until you get closer to your closing date. You will usually have a chance to lock in your rate at that time. Below is the Rate Lock Advisory received from ALamode this afternoon. Their opinion not mine.

"If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my o pinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers. "

Wed May 14 2008, 13:07

FHA mortgage rates will fluctuate, but it won't be directly because of the Fed Fund rate, or the discount rates. (fed rate changes impact credit cards, home equity lines, etc.) FHA rates tend to move up or down less frequently and with moderate change compared to the conventional mortgage rates. 6% is a pretty good rate; I've been offering that with no points lately, for 30 year fixed mortgages. (as of 5/13/08).

Wed May 14 2008, 11:09