FHA Interest Rate: All-Time Low, Chance to Buy a House!
FHA (Federal Housing Administration) interest rate is at an all time low at present, so this is the ideal time to apply for FHA mortgage loans. The present rates are some of the lowest interest rates ever offered. The FHA interest rates are mainly dependent on your present credit situation. If you have excellent credit record and FICO score, then it is likely that you’ll get the FHA loans easily at low FHA interest rates.
One of the excellent things of FHA loan is, if you take a fixed rate FHA mortgage, you can opt to go refinance to get better rates when interest rates are dipping down. You can use the FHA streamline refinance to lower your current FHA loan interest.
FHA loans have simpler qualifications to meet so it is simpler to buy than conventional loans. Low FHA interest rates have helped families with low-to-middle income to have the chance to own their dream house which they won’t have otherwise. If the interest rates are compensated too, the FHA loans are certainly the best deal you’ll ever find.
At present, the structure of an FHA loan is such that you can pay the lowest interest, minimum down payment (it can be as low as 3%!) and lowest closing rates. The present rates are some of the lowest rates ever offered.
There are two types of FHA loan categories: one is single family having 1-4 unit homes and the other is multi-family having 5 or higher number of unit homes.
For FHA home loans, you get an option of going for a buy down on the low FHA interest rates. When going for a 2-1 ratio, you get an option by which you can reduce your FHA mortgage interest rate by 2% in the first year, 1% in the second and follow it up by 0% from the following year. You can also permanently lower your interest rate. If you were paying an interest of 6% for a loan, you can lower it to 5.5%. But to get this you have to meet a few guidelines laid by the FHA. Though this more preferred than a buy down option, if your seller pays for the permanent buy down and the buyer gets to occupy the property for three years.
So, as I said before, due to the low interest rates, this is among the best days to take FHA mortgages to buy your dream house. But don’t forget to calculate your other expenses too so you can make sure that you’ll be able to pay your monthly installments without worrying about unexpected expenses during the payment months.
Read also: FHA Loan Limits and FHA Loan Requirements
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