FHA interest rates for July 2015 are starting out pretty much inline with last month. Lots of uncertainly in Greece has caused the bond markets / rates to bounce around pretty drastic over the last few days. As of today FHA loan rates sit around 3.75% (0 points) for the 30 year fix term. Home buyers will want to remember a few things in regards to FHA interest rates:
The actual interest rate an applicant receives will be highly based on their credit score. Rates can be up to 1/2 percent higher or lower depending on credit score. Generally 740 and above credit scores receive the lowest interest rates.
Most lenders offer a verity of FHA adjustable rate term mortgages (ARM) that often times come with a lower interest rate when compared to standard 30 year fixed terms. This may be good for the home buyers that are more payment sensitive and may only live in their new home for a set amount of time. Most FHA adjustable rate mortgages come in 5 year, 7 year, etc. Meaning the loan is a fixed rate for that initial ( 5, 7 year, etc) allotted amount of time. Again, the benefit is the lower interest rate, which can significantly reduce monthly mortgage payments.
Closing costs – most borrowers will have an option to reduce their out of pocket costs by having the mortgage company pay all (or part) of their closing costs. However, please note this comes with a price as lenders often times increase the borrowers interest rate to accomplish this. Depending on the situation, this may.. or may not make sense. Any trained FHA loan specialist can break down the numbers to see if this option is right for you.