Today’s Lowest FHA Mortgage Rates – Refinance Average Interest Rates Remain Under 5% for Well Qualified Borrowers
Posted on | April 13, 2011 | Comments Off
As the 10 year treasury rate yield remains very close to its 50 day moving average that is the case that average interest rates remain under 5% for well qualified borrowers. When looking for today’s lowest FHA mortgage rates most homeowners will find that the 30 year fixed is slightly below 5% while the 15 year fixed is slightly above 4%.
It is important to recognize that it takes an amazing financial history to have any opportunity to lock in to the lowest possible interest rates. With a credit score above 740, a debt to income ratio that is well below 40% and a significant amount of home equity there is a very good chance that homeowners will position themselves very well when it comes to locking in the lowest mortgage rates at the present time.
When it comes to refinancing with an FHA mortgage is important to remember that there are insurance obligations. Some homeowners may consider a conventional mortgage with a slightly higher rate as they will avoid these insurance obligations by going with a conventional mortgage. This may be something to consider before starting the refinance process.
With average interest rates are still below 5% many American homeowners stand to benefit greatly when refinancing. Unfortunately, there are some Americans who cannot reduce their interest rate by one full percentage point to going to the refinance process is not intelligent. By accessing the free mortgage calculators available online homeowners can better understand if they will benefit from the refinance process.
It may also be advisable to access the HUD website that should explain each and every step of the refinance process. By understanding what steps will allow individuals to negotiate lower costs and fees some homeowners could end up saving hundreds and possibly even thousands of dollars down the road.
Author: Jeremy North
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