The interest rate is dependent on a lot of things... your down payment, the loan amount, the purchase price, term of loan, etc, etc. etc. Are you buying a home in the next 30 days?
With credit scores over 710, $250,000 purchase with 3.5% down on an FHA 30 year fixed rate loan, today's rate is 4.75% with 1 point plus closing costs.
Points and closing costs can be financed if your offer is done in such a way that the seller is making a "contribution" to your closing costs - giving you a way to finance these costs!
The Seller can pay up to 6% in closing costs and prepaids.
With a 150K home your down pmt = 4500
The Seller pays the closing costs of 6% .(9000
You must prequalify for the loan FIRST
then make sure you have 3% of that amount
then start looking.
If you need a referral to a bank or mortgage broker please do not hesitate to contact me.
First, rates are usually less if you select a shorter term - 15 years, for example, versus 30. The type of loan can also make a difference. As a rule of thumb, adjustible rates are usually less than fixed rates. Rates also vary from state to state. The type of property can also influence rate. Multifamily dwellings (2 - 4 units, for example) typically carry greater risk and therefore a higher rate. Finally, credit history, assets, time on the job, and other individual borrower characteristics are weighed to determine FHA risk and rate. You may have heard of the term "automated approval" versus "manual underwrite" - which also influences rate.
As simple answer could be that a fixed rate FHA insured mortgage for a 30 year term on a single family dwelling, with automated approval, would be around 6.50% today, give or take 0.25%. Due to regulations passed recently in Massachusetts, many lenders feel the risk is greater with consequently higher rates - about 0.125% higher than other states.
If you plan to shop for a mortgage, do it soon. In fact, you must initiate your application (so the lender can order an FHA Case Number for you) no later than July 13th to avoid new rate increases, higher FHA insurance premiums, and a host of other changes recently approved by HUD for all FHA loans. For the first time in history, FHA will consider credit score in determining the amount of your FHA insurance premium. Some borrowers will pay more - as much as 2.25% of the loan amount at closing. Borrowers with excellent credit and larger down payments will pay less.