Advertised & Editorial Rates: This table includes two types of listings: ads that we may be paid for (“advertiser listing”); and listings that we research and publish to provide a more holistic view of market rates (“editorial listings”). Here’s how to tell the difference: if you see a clickable button, such as a green “Next” button, that is an advertiser listing, and if you do not see a clickable button, it’s an editorial listing. For more information, see our Advertising Disclosure
Accuracy of Advertised Terms: Each advertiser is responsible for the accuracy and availability of its ad offer details. However, we attempt to verify those details through our quality control program. For more information, see our Quality Control Program.
Editorial Content: We include editorial content below the rate table to educate consumers about financial products and services. Some of that content may also contain ads, including links to advertisers’ sites, and we may be paid on those ads or links. For more information, see How We Make Money.
Terms and Phrases that may be used in this Mortgage Rate Table
Upfront costs: The upfront costs are charged for originating the loan. These costs are commonly labeled as Origination, Application, Processing, Underwriting, or Administration fees. The upfront costs may not include all costs associated with securing your mortgage. Please visit the Consumer Financial Protection Bureau’s website or consult a loan officer or broker for more information.
Points: Points are fees paid directly to the lender in exchange for a reduced interest rate. A point is equal to 1% of the borrowed funds. By paying points, you save money on interest over your mortgage’s term.
5-year cost: This is an estimated amount you’ll pay in interest and costs, such as the upfront costs and points, for the identified time. The estimated amount does not include principal payments or other costs, such as taxes, insurance, or private mortgage insurance. Your actual loan terms, such as the rate, annual percentage rate, monthly payment, and upfront costs, may be different because of other factors, such as your credit score, income, and employment history.
Calculate your monthly payment:
Principal: The face value of a loan, independent of the interest charged on the loan amount.
Interest: Payments made to a lender by a borrower in exchange for a loan.
Property Tax: Any tax on real estate or certain other forms of property.
Private mortgage insurance (PMI): An insurance policy that compensates lenders for losses from a mortgage loan default.
Homeowner association (HOA): A private association formed by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision.
One-time fees breakdown: These fees are estimates of the fees charged by the lender for processing, approving and funding a loan.
What Are Today’s FHA Mortgage Rates?
On Friday, January 15, 2021 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year FHA mortgage rate is 2.660% with an APR of 3.550%. The average 30-year FHA mortgage refinance rate is 2.580% with an APR of 3.460%.
Current FHA Mortgage rates
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 2.950% | 3.170% |
| 30-Year FHA Rate | 2.580% | 3.460% |
| 30-Year VA Rate | 2.840% | 3.090% |
| 30-Year Fixed Jumbo Rate | 2.990% | 3.060% |
| 20-Year Fixed Rate | 2.880% | 3.150% |
| 15-Year Fixed Rate | 2.430% | 2.670% |
| 15-Year Fixed Jumbo Rate | 2.450% | 2.510% |
| 10-Year Fixed Rate | 2.460% | 2.670% |
| 5/1 ARM Rate | 2.950% | 4.040% |
| 5/1 ARM Jumbo Rate | 2.890% | 3.990% |
| 7/1 ARM Rate | 2.900% | 4.010% |
| 7/1 ARM Jumbo Rate | 2.990% | 4.010% |
| 10/1 ARM Rate | 3.310% | 4.080% |
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 2.910% | 3.210% |
| 30-Year FHA Rate | 2.660% | 3.550% |
| 30-Year VA Rate | 3.110% | 3.410% |
| 30-Year Fixed Jumbo Rate | 2.960% | 3.070% |
| 20-Year Fixed Rate | 2.780% | 3.100% |
| 15-Year Fixed Rate | 2.380% | 2.720% |
| 15-Year Fixed Jumbo Rate | 2.410% | 2.480% |
| 10-Year Fixed Rate | 2.380% | 2.640% |
| 5/1 ARM Rate | 2.890% | 3.980% |
| 5/1 ARM Jumbo Rate | 2.830% | 3.890% |
| 7/1 ARM Rate | 2.840% | 3.890% |
| 7/1 ARM Jumbo Rate | 2.910% | 3.860% |
| 10/1 ARM Rate | 3.100% | 3.940% |
Rates as of Friday, January 15, 2021
What Is an FHA Loan?
An FHA loan is a mortgage that’s issued by a traditional mortgage lender but backed by the Federal Housing Administration (FHA). Because these home loans are backed by the government, they’re easier to qualify for if you have less-than-perfect credit. But FHA loans also have more limitations than conventional loans, such as stricter appraisal standards.
FHA loans can be ideal for first-time home buyers because they offer competitive mortgage rates, and have low down payment requirements of as little as 3.5%. These mortgages are available for residential property of up to four units that is intended to be your primary residence.
Who Qualifies for an FHA Loan?
The FHA publishes its loan requirements each year, providing information on required documentation as well as credit score and debt-to-income (DTI) ratios needed to qualify. The FHA also sets maximum loan limits, which are based on where the property is located. In 2021, these limits for single family homes range from $356,362 to $822,375.
The credit score you need to qualify for an FHA loan varies depending on your down payment. With a minimum down payment of 3.5% of the purchase price you need a credit score above 580. If you bump up your down payment to at least 10%, the minimum credit score drops to 500.
Just keep in mind that each lender has its own additional guidelines, which are usually more stringent than the minimum requirements. So make sure to contact your bank or credit union to learn more about its requirements beforehand.
How do I Compare FHA Loans and Other Mortgage Rates?
Typically, FHA loans offer rates that are more favorable than conventional mortgage and refinance rates — especially for borrowers with lower credit scores. But you need to look beyond the interest rate when comparing offers, and also consider the fees associated with the loans.
An FHA loan has an upfront mortgage insurance premium of 1.75%, in addition to monthly mortgage insurance costs. With a conventional loan, you can waive the mortgage insurance requirement with a down payment of at least 20%. So depending on your situation conventional loans can have more reasonable fees than FHA loans.
When to Consider an FHA Loan
FHA loans are useful for people who can’t afford a large down payment, who don’t have top credit scores and others who have trouble qualifying for a decent interest rate with a conventional loan. But because of the additional restrictions and fees, FHA loans aren’t ideal for every homebuyer.
Pros
- Low down payment
- Can qualify with a lower credit score
- Favorable rates for borrowers with low credit scores
- Higher DTI ratio allowed, up to 43%
Cons
- Upfront mortgage insurance premium payment
- Cannot exceed the FHA loan limits
- More strict appraisal standards
- Can’t waive private mortgage insurance at 20% equity
How do I Find Personalized FHA Loan Rates?
Mortgage rates for FHA loans vary by lender, so you’ll have to shop around to find personal rates. When you’re trying to find the best FHA lender, remember that not every lender will offer FHA loans. So you can narrow your search by limiting your options to those with FHA loan options.
Once you’ve found a few lenders you want to work with, you can call to ask what rate it offers, but the lender won’t be able to guarantee a rate until you fill out an application. Thankfully, most lenders don’t charge application fees. But lenders will want to verify your income, assets, debts, and your credit score, all of which impact what rate you can qualify for.
