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Rates are flat today. Today’s rates with no lender fees are 4.0% APR on a 30 year, 3.125% APR on a 15 year and 2.875% APR on a 10 year. (click here for details)

I know we covered the fact that FHA has changes coming on April 1 that will increase the up front and yearly funding fees – But the FHA loan is still one of the best loans on the market today.
Check it out in today’s video:


low-rates
So let’s recap the advantages of an FHA loan before we get to that one thing most people overlook.
1. FHA loans allow for a low down payment and have flexible guidelines on where that down payment can come from. Gift funds and some down payment assistance programs are not an issue.
2. More flexible on credit requirements. FHA technically has a much lower credit requirement than lenders but the typical 640 score minimum most lenders have today is still low.
3. Rates are typically lower than the conventional mortgage and come with higher overages available to offset your closing costs. These overages also help offset those funding fee hikes that are coming.
4. The underwriting guidelines are much more relaxed than a conventional mortgage.
5. The one most people forget about and shouldn’t. The fact that FHA loans are assumable.
Here is why it’s so important to consider today. Rates on an FHA 30-year fixed loan are in the high 3s.What do you think rates will be in five to 10 years from now? I can tell you it won’t be in the 3s or probably even in the 4s.
This means when you go to sell your house let’s say seven years from now – this is a selling point to a potential buyer. If rates are at 5.5% and you can offer them an assumable mortgage at 3.5%, doesn’t that make your house way more affordable and more likely you can sell it for your full asking price?
You bet it does! So we all know rates and home prices are low today. But how great is it to be able to offer today’s great rates to your buyer some day when you are ready to sell?
That being said – if you have the ability to buy a house and choose to rent – This is for you!
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgageā€¦forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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