Home Buying in Dallas County>Question Details

John Hyland, Home Buyer in Portland, OR

FHA interest rates

Asked by John Hyland, Portland, OR Fri Jun 22, 2012

I was just pre-approved for an FHA home loan. Are interest rates for FHA set in stone or do they very by lender, credit profile, debt and so forth. This is kind of confusing the gentleman that did the pre-approval was super nice I just done want to be paying a .25-.5% higher interest rate than I should for my credit.

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Don Groff’s answer
Hello John,

While the rates may not vary much potential credits to you for the same interest rate will vary a great deal. For example. I am a Realtor and mortgage broker. I have many lenders but typically will use Wells Fargo for most of my FHA refinance and purchase clients.

If you go to Wells Fargo directly they will offer you a similar rate that I can. My closing costs will be about $300 less than Wells Fargo retail and on a rate of say 3.625% you would get a lender credit of almost 3%. So on a $200,000 purchase you would have lower lender fees plus receive a $6000 credit for the same in interest rate.

I can do this because I am a direct Tier 1 wholesale broker. So on a typical $200,000 purchase loan your closing costs would be over $6,000 less with me than using most other lenders.

Give me a call or send me an email and I can send you a GFE to compare. I even have done loans for Wells Fargo and Chase employees if that gives you an idea of how competitive I am as compared to mortgage bankers and retail lenders.

Best of luck to you!

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Sun Jun 24, 2012
If you consider "buying down" your rate by paying discount points, be sure to look at the "recapture time." In other words, your payment will be lower due to the lower rate, but how many months will it take you to recapture those extra closing costs. Over the long term, the lower rate will save you interest. But how long do you plan to keep the home?

Another thought is to make sure you wouldn't qualify for a conventional 95% loan? FHA's annual MIP is up to 1.25%, and a conventional financed PMI premium could really save you money if you put down about 5.4%. I have been a big booster of FHA loans throughout my 30 years of lending experience, but the MIP is a large burden to place on the backs of low to moderate income buyers, IMHO.

Good luck!
Barbara Coker
100% Home Loans All Over Texas For 30 Years!
0 votes Thank Flag Link Sat Jun 23, 2012
Hi John,

Like most agents mentions this is just a pre-approval loan. When you are ready to lock in the rate when you have a contract executed. The rate will most likely change! You should always shop and call around once you have your executed sales contract and compare the closing cost and interest rate. Make sure you look at the point sesion - each point is one percent of the loan amount and the higher the point is usually means a lower interest rate.

Good luck with your home buying!

0 votes Thank Flag Link Sat Jun 23, 2012
Most lenders are quoting 3.75% and reducing loan fees.
You might find 3.5% for a 'full fee' deal.

You need to be SURE how long you will stay in the loan before you decide which is better for you.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Fri Jun 22, 2012
Interest rates are effected by credit score, loan amount, length of time for the lock, and of course, your lender. Until you have a contract, and are ready to lock, you can't really compare. Just because you have been preapproved, that doesn't mean you still can't shop around. However, if you have an unusual situation, not all lenders might be ready to give you the loan.
Just a few things to consider.

Good luck!
Barbara Coker
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas For 30 Years!
0 votes Thank Flag Link Fri Jun 22, 2012
Until you lock your rate it can and will vary! Also paying points can buy down the rate. Also shop your loan and watch what your lender is charging for originating the loan. You'd be surprised how they differ. Good luck, if you want a list of some good lenders call, email or text me.

Best Regards,

John Greer
United Real Estate Dallas
214-460-8381 Cell/Text
0 votes Thank Flag Link Fri Jun 22, 2012
Yes...they vary.
Fees vary
Rates vary

I am very picky about lenders.
I can send you the rates my lender just sent me if you'd like to compare.

Bruce Lynn
Keller Williams Realty
0 votes Thank Flag Link Fri Jun 22, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
Your loan can never be locked till you submit an executed sales agreement . Approval letter is good for approx. 60 days .

I would get moving on selecting a home .

Are you working with a Realtor ? If NO feel honored to work with you

Contact my office today where I can show you many amazing homes work with your family specifications.
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer

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0 votes Thank Flag Link Fri Jun 22, 2012
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