Compare current FHA mortgage rates
What is an FHA loan?
An FHA loan is a government guaranteed loan that helps those who cannot afford or qualify for a conventional mortgage. These tend to have lower income and credit score requirements – lenders can accept requests for FICO® scores as low as 580. Additionally, FHA loans allow borrowers to pay as little as $ 3. 5% depending on their creditworthiness. Additionally, some or all of a borrower’s down payment may come from generous family, friends, employers, or charities in the form of a down payment.
Borrowers will have to pay FHA mortgage insurance regardless of the amount of their down payment. This involves paying both an initial premium and a monthly premium. The initial premium is 1.75% of the base loan amount. The monthly premium is based on factors such as the amount and terms of your loan.
You’ll also want to decide on the mortgage term that’s best for you. FHA loans can be repaid over 15 or 30 years. Both terms have fixed rates, so your interest rate and therefore your monthly payment will never change.
How To Find The Best FHA Mortgage Rates
To get the best mortgage rates for an FHA loan, you will need to seek out lenders approved by the Federal Housing Administration. These are the only lenders who offer FHA loans.
There are some important steps you need to take before applying for a mortgage. These include figuring out how much home you can afford and making sure you meet the lenders’ requirements.
Then you should get quotes from various lenders as their interest rates and fees may vary. Find those who offer prequalificationbecause it will have no effect on your credit score. FHA mortgage insurance premiums are generally the same no matter who you go with.
Once you have your quotes, be sure to compare the APR. The APR will reflect both the interest rate and the fees you will have to pay.