Today’s Lowest FHA Mortgage Rates – Fixed and ARM Refinance Loan Rates Remain Well Below 5% in May 2011
Posted on | May 16, 2011 | Comments Off
With many American homeowners seeking today’s lowest FHA mortgage rates should come as no surprise to see many mortgage lenders throughout the United States reporting rates very close to 2011 lows. But the 10 year treasury rate yield well below its 50 day moving average is the case that 30 year fixed conventional mortgage rates are around 4.5%.
It is very important to recognize that not all American homeowners will have an opportunity to lock in to the lowest possible mortgage interest rates. The general rule of thumb is that it takes an amazing financial history with a credit score above 740 and a debt to income ratio under 40% to have any opportunity to receive the lowest interest rate quotes.
It is also important to remember that there are insurance obligations that come with an FHA mortgage. It is sometimes the case that it would be wise to consider a slightly higher interest rate on a conventional mortgage as homeowners will be able to avoid the insurance obligations and could end up saving money in the long run.
Luckily, there are many free mortgage calculators available online that should help homeowners much better understand how much money can be saved by going through the refinance process with an FHA mortgage. If individuals are going through a fixed refinance or an adjustable rate (ARM) refinance it is important to remember that crunching numbers is very important.
As we get closer to the summer of 2011 it could be the case that interest rates start to rise due to the fact that the economy has improved. It is important to note that many analysts have made this claim for several months and it has yet to happen but as the economy does get better it will likely be true that the federal reserve bank no longer needs to take the necessary steps to keep interest rates low.
Author: Mike Garner
Tags: arm fha mortgage rates > fha refinance home loans > fixed fha home loans > lowest fha interest rates > today's lowest fha rates > todays lowest fha mortgage rates