It’s been an incredible month for the Government loan programs.
Today, we’re looking at the 4.75% 30 Year Fixed Rate.
On October 16th, the discount points required to buy the loan down to 4.75% was 1.82%.
As of today, it’s…..0.000%.
This is a staggering 182 basis point run in just 45 days. On an average loan of $250,000, this is a whopping $4,550 in reduced closing costs to end up with the same low FHA loan rate of 4.75%.
We’re currently at the best rates of all time. Even one year ago when conforming rates dropped, the FHA vs Conventional comparisons were not this even. We’re now only seeing a spread of .125% between the two rates and the comparisons increasingly favor FHA when either of two conditions is true:
- Credit score is below 720
- Down Payment is less than 10%
Under either scenario, you’re looking at sub-5% rates but long-term savings typically lean towards the FHA programs.
Tags: FHA Interest Rate, fha loan, FHA Loan Rate, fha programs, FHA vs Conventional, government loan programs