Question:

How are the 30 yr fixed mortgage rates doing?

Answer:

The 30 yr fixed mortgage rates are now comparable to a 5 yr ARM - slightly above 6%. Interest rates for fixed rate mortgages are going up compared to ARMs.

Also, the FHA 30 yr fixed mortgage loans rates and terms seem to become more attractive to low credit consumers given that subprime funding is difficult to get. Earlier, when subprime lending was everywhere and 100% LTV was allowed, the FHA 30 yr fixed mortgage rates and terms did not seem as attractive.

Recently, news came out from Fannie Mae that they will charge additional fees for mortgage loans with different features. For example, a fee of 0.5% of the loan amount will apply to a cash-out refinance and a borrower with credit score of 720+. If the borrower refuses to pay the fee in cash, it will translate into a rate increase. The lower the score, the larger the fee.

Thus, FHA with their variety of loans, including the classic 30 yr fixed mortgage are moving back into the spotlight, especially when high cost area loan limits have been adjusted.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
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Common misspellings: mortage and morgage