|FHA Rates are basically a subject of negotiation between the lender and borrower, and the Federal Housing Administration does not have any role to play in bringing changes to these. However, there are certain regulations that a lender must abide by while quoting a chargeable interest rate to a borrower.
The origination fee cap for many FHA standard forward mortgage programs excluding 203k has been removed and lender can no longer limit the origination fee to one percent. The closing costs and other fees are also determined by the lender arbitrarily, but within the purview of HUD guidelines.
One can find complete information on regulations regarding FHA rates, closing costs and other fees in HUD Handbook 4155.2 and MLs 09-53, 06-04, 94-16.
FHA Rates Today
As FHA does not regulate the interest rate, you would have to go to a lender to check the Today’s rates on different FHA loan programs. For example, if you are seeking mortgage assistance from Wells Fargo, Chase or Bank of America, you should visit their respective websites to check FHA rates today.
You may also like to compare these rates with the conventional rates so as to form a better opinion. However, with FHA loans, it is not rates but the flexible terms that makes it affordable for any American to buy a home despite having a low credit score or insufficient fund for down payment.
Nevertheless, you must search around to find an interest rate that you can easily afford for the life of the loan. The online platform provided by website like bankrate.com helps you do so effectively and with much ease. There are other resources available online that can help you get the best deal. These may include payment calculator, historical graph, trend chart, forecast & predictions, rate watch & tracker and more.
FHA Rate Reduction Program
It is true that FHA does not regulate interest rates but it has a couple of programs that can help lower the same. Known as FHA rate reduction program, it is usually carried out through the vehicle of refinancing.
For example, a Rate and Term Refinance allows a homeowner to either reduce the rate or change the loan term. For more information and also to find Term Refinance worksheet and guidelines, one can refer to HUD handbook 4155.1. Streamline Refinance is yet another FHA rate reduction program that can help you get a low rate without any out-of-pocket closing costs.
Apart from these, you can also try buying down discount points at a lender or may be able to qualify for a rate reduction program that your lender might offer. One option will be to lock a rate as soon as it reaches within your affordable level.