Home Buying in 01835>Question Details

Krisshir, Home Buyer in Massachusetts

what's the FHA interest rate right now?

Asked by Krisshir, Massachusetts Mon Jun 16, 2008

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0 votes Thank Flag Link Tue Apr 14, 2009
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!
0 votes Thank Flag Link Tue Apr 14, 2009
Yes ,interest rates vary daily, your credit score and earnings are the key , closing can take place in 30 - 45 days .The required down payment is 3%
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.
0 votes Thank Flag Link Tue Jun 17, 2008
Answering questions about mortgage interest rates, especially FHA rates, is never as simple as it may appear, as lenders use many factors to determine risk and pricing for mortgage rates.

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.
0 votes Thank Flag Link Mon Jun 16, 2008
The rate today was up to 6.75% but there are other programs that can save you some money. If you qualify for a VA loan or a mass housing loan you can get a better rate. If you want to find out for sure contact me and I will be happy to put you in contact with a mortgage professional that I trust will give my clients the service that they deserve.
0 votes Thank Flag Link Mon Jun 16, 2008
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