By W. Todd Galde
Your Mortgage Matters
FHA Rates are Looking Great!
We know that FHA-insured mortgages tend to offer the lowest par rates in the marketplace. Now with FHA rates on a downward tear over the last few weeks we are currently sitting at the best levels in over a month!
Just how good are rates currently? In some higher cost areas (for a Purchase at 96.5%), Par rates as low as 3.75% are currently on the table! That is 3.75% with no points! In most other MSA’s for the same scenario the prevailing FHA par rate is around 4%.
Thinking about cash-out but worried about the adjustments? Don’t be! Most FHA scenarios do not feature any LLPA’s for Cash-Out – meaning the aforementioned par rates are available with cash-in-hand (up to 85% LTV).
Curious about High Balance FHA pricing? Most scenarios will only equate to a 0.125% increase (to the rate) vs. the conforming pricing scenarios above.
Right about now someone out there is mumbling about FHA Insurance premiums. Yes, FHA mortgage insurance is not attractive – but did you know that in some cases the FHA annual insurance does not apply for the entire life of the loan?
When a FHA loan is closed with LTV of <90% or less, the annual MIP is only required until the end of the mortgage term, OR for the first 11 years of the mortgage term, whichever occurs first.
If you have any additional questions or would like to discuss a specific scenario please don't hesitate to email, text, or call.
Because Your Mortgage Matters...
W. Todd Galde
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