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30-Year FHA Rates
Many homeowners have changed their financing strategies from the 30-year to the fixed 15-year mortgage insured by the Federal Housing Administration. With this amortization schedule, homeowners would be committing to 360 payments that are fixed. There is no pre-payment penalty for early pay-off. One of the major benefits about a government home loan is that if the interest rates improve, you can do a streamline refinance and get a lower 30 year FHA rate without being hassled.
Freddie Mac reported the 30-year FHA rate averaged 3.25% last week. So far this year the trend has been for interest rates to rise, so many consumers are in a hurry to get the FHA mortgage rate locked into a thirty year term. With all of the inflation fears it makes sense to play it safe with a 30-year FHA loan that is locked with a fixed rate.
In some instances, borrowers have struggled to refinance because they have underwater mortgages that have prevented them from refinancing due to lack of equity. Borrowers that have a Freddie Mac or Fannie Mae owned loan have been migrating to the Home Affordable Refinance Program. FHA customers have been refinancing their underwater loans under the streamline program because the appraisal is typically waived. The other benefits of 30-year FHA mortgages include minimal deposit requirements, and fee restrictions on lender fees.
Choose Type of FHA Loan
The 30-Year FHA rates ensure homeowners an affordable monthly payment with simple interest and fixed payment guaranteed for thirty-years..
The FHA offers several term options in addition to the popular 30-year FHA mortgage.