The Federal Reserve made sweeping cuts and the 30-year FHA mortgage loans are available for 3.75% (APR 3.85%) with fixed rate guarantees. FHA continues to insure thirty-year FHA loans featuring fixed mortgages rates and no penalty for early pre-pay or refinance. 30-year mortgage rates remain the most popular choice for homeowners looking to refinance because the FHA rates are low and the 30-year mortgage stretches out the amortization schedule over 360 months so the payments are very affordable.
FHA Refinance Guarantees Fixed Rates
With conventional lenders tightening their belts on their mortgage guidelines and subprime mortgages became a footnote to the subprime mortgage crisis. Unfortunately millions of borrowers have been stuck in high rate subprime loans that continue to fuel the foreclosure crisis. The 30-year FHA mortgage provides affordability and stability with a guaranteed FHA rate for thirty years.
Should I Refinance with a FHA 30 Year Mortgage?
FHA enables borrowers with all ranges of credit an opportunity to refinance into a 30-year mortgage that is more affordable with their present income. Refinance guidelines promote flexibility with credit and these loans do not require much home equity either. FHA refinancing enables homeowners to refinance with only 3% equity in their home.
Congress recently passed a bill that made the higher FHA limits permanent for 2013. In high cost regions like California, Maryland, Virginia, D.C. and New York, borrowers can refinance up to $625,500 in high costs regions using the 30-year FHA mortgage program.
Now is the time to refinance into a FHA loan because rates are record lows and FHA loans are funding quickly. The FHA Secure expired on December 31, 2008, but the Home Affordable Refinance Program could potentially help millions of homeowners refinance into a low thirty year mortgage. Obama and Congress came together to pass a bill that allows underwater FHA customers to utilize the streamline program for payment relief that is similar to the HARP 2.0.
Disclosures: 3.75% (3.88% APR) on a fixed rate FHA 30-year mortgage with a $215,000 loan amount has a payment of $995.70 as of 4-7-13. There are 360 monthly payments with a 30-year mortgage. Call for current pricing.
The 30-Year FHA mortgage rates displayed are subject to lender approval and could change without notice. The FHA Mortgage Refinance Loan Company is not directly affiliated with any government agency. We provide an online marketplace for consumers searching for FHA loans and HUD resources. We are affiliated with HUD approved FHA mortgage lenders. If you would like to contact HUD directly please visit their website online.