An increase of $10 to $20 per month probably isn't going to make the difference of someone qualifying for a loan, or change whether it's affordable
Wilmington, NC (PRWEB) January 30, 2012
FHA loan rates have stayed relatively steady, and below 4.000% on average this week, though fees on these government backed loans are set to increase later this year, according to mortgage rate research website, ForTheBestRate.com. In December 2011 Congress voted to offset the expense of a payroll tax extention with an increase in mortgage fees for conventional loans sold to Fannie Mae and Freddie Mac, and for FHA loans backed by the Federal Housing Administration.
For FHA mortgages the additional fee will be in the form of a 0.1 percentage point increase in the mortgage insurance premium paid by mortgage holders. The FHA has yet to release information on when the fee increase will take place, and as of Friday, January 27th average FHA mortgage rates remained in the 3 percent range.
Rates as low as 3.750% (APR: 3.751%, Points: 0, Fees: $10, Lender: Atlantic Mortgage and Funding, Inc.) were posted on ForTheBestRate.com for a 30 year FHA loan. For an FHA loan with a 15 year term advertised rates went as low as 3.250% (APR: 3.403%, Points: 0.375, Fees, $1345, Lender: CloseYourOwnLoan.)
Though the fee increase is small, it will mean a slightly higher payment for new FHA borrowers after it goes into affect. Current FHA mortgage holders will not be impacted, nor with those who close their loans before the implementation of the increase. If an existing FHA loan is refinanced into a new Fannie Mae, Freddie Mac, or FHA mortgage after the fee rises it will be in place on the new loan.
"An increase of $10 to $20 per month probably isn't going to make the difference of someone qualifying for a loan, or change whether it's affordable," said Shaun Hamman, VP of Residential Lending at American Financial Resources, a National mortgage lender, about the likely addition to a monthly FHA mortgage payment following the mortgage premium rise. "But with rates as low, or close to as low as they have ever been, and some additional costs on the horizon, it is certainly advisable to consider an FHA refinance or purchase loan now rather than waiting if it fits into a home owner's or potential home buyer's plans," he continued.
Current mortgage rates for a number of different residential home financing programs can be viewed on ForTheBestRate.com. Below is a snapshot of mortgage rates for a variety of products listed on the site on 01/27/2012. Rates are subject to change. Please visit the site to view the criteria used in the survey.
30 Year FHA Mortgage Rates (0 Points)
EverBank - 3.750% Note Rate, 3.822% APR, $1750 Fees in APR
Atlantic Mortgage and Funding, Inc. - 3.750% Note Rate, 3.751% APR, $10 Fees in APR
15 Year FHA Mortgage Rates (0 Points)
New American Mortgage - 3.250% Note Rate, 3.351% APR, $1395 Fees in APR
CloseYourOwnLoan - 3.250% Note Rate, 3.403% APR, $1345 Fees in APR
30 Year VA Mortgage Rates (0 Points)
New American Mortgage - 3.750% Note Rate, 3.768% APR, $450 Fees in APR
AIG Bank - 3.750% Note Rate, 3.797% APR, $1150 Fees in APR
15 Year VA Mortgage Rates (0 Points)
Seckel Capital - 3.500% Note Rate, $3.500% APR, $0 Fees in APR
ForTheBestRate.com is a website that offers information regarding mortgages, insurance, and personal finance. ForTheBestRate.com is owned by CMG Equities, LLC based in Wilmington, North Carolina.