30 Year FHA Mortgage

The Federal Reserve made sweeping cuts and the 30-year FHA mortgage loans are available for 4.75% 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. FHA 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 FHA loan limits permanent for 2010. 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.