FHA loan rates | Bankrate | Compare rates today (2024)

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Written by

Jeff Ostrowski

Edited by

Suzanne De Vita

Edited by

Suzanne De Vita

On Sunday, December 24, 2023,the national average 30-year FHA mortgage APR is 6.89%. The average 30-year FHA refinance APR is 7.02%, according to Bankrate's... latest survey of the nation's largest mortgage lenders.

How to compare mortgage offers

Comparison-shopping for a mortgage isn’t just smart — it’s crucial to get the most competitive rate and mortgage terms. Even a 0.1 difference in an interest rate can save thousands of dollars over the life of the loan. Bankrate’s mortgage rate table allows you to easily compare personalized rates from our marketplace of trusted lenders. Here is how to compare mortgage offers on Bankrate in 3 easy steps:

Determine the right type of mortgage: There are a lot of options in home loans, so it’s important to research and decide what type of mortgage might be best for you, given your finances and your short- and long-term goals. 
Gather necessary documentation: In order for lenders to give you the most accurate quote, you will need to provide paperwork once connected with a lender that verifies your income, assets, debts and employment. 
Compare mortgage offers online: Bankrate helps you easily compare mortgage offers by using our mortgage rate table below. Our rate table filters allow you to plug in general information about your finances and location to receive tailored offers. As you weigh offers, be sure to consider APRs, lender fees and closing costs to ensure you’re making accurate comparisons — and maximizing your savings potential.

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Bankrate has helped people make smarter financial decisions for 40+ years. Our mortgage rate tables allow users to easily compare offers from trusted lenders and get personalized quotes in under 2 minutes. While our priority is editorial integrity, these pages may contain references to products from our partners. Here is how we make money.

Weekly national mortgage interest rate trends

Current mortgage rates

	30 year fixed	7.09%
	15 year fixed	6.42%
	10 year fixed	6.08%

Today's national FHA mortgage interest rate trends

For today, Sunday, December 24, 2023, the national average 30-year FHA mortgage interest rate is 6.00%, down compared to last week’s of 6.04%. The national average 30-year FHA refinance interest rate is 6.11%,upcompared to last week’s of 6.09%.

Whether you're buying or refinancing, Bankrate often has offers well below the national average to help you finance your home for less. Compare interest rates rates here, then click "Next" to get started in finding your personalized quotes.

We’ve determined the national averages for mortgage and refinance interest rates from our most recent survey of the nation’s largest mortgage lenders. Our own mortgage and refinance interest rates are calculated at the close of the business day, and include annual percentage rates and/or annual percentage yields. The interest rate averages tend to be volatile, and are intended to help consumers identify day-to-day movement.

Current FHA loan rates

The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive FHA loan rates. This interest rate table is updated daily to give you the most current rates when choosing an FHA mortgage home loan.

Product	Interest Rate	APR
30-Year FHA Rate	6.00%	6.89%
30-Year Fixed Rate	7.01%	7.02%
15-Year Fixed Rate	6.41%	6.44%
5/1 ARM Rate	6.44%	6.44%
30-Year VA Rate	6.16%	6.26%

Rates as of Sunday, December 24, 2023 at 6:30 AM

Product	Interest Rate	APR
30-Year FHA Rate	6.11%	7.02%
30-Year Fixed Rate	7.20%	7.22%
15-Year Fixed Rate	6.37%	6.39%
5/1 ARM Rate	6.32%	6.32%
30-Year VA Rate	6.18%	6.38%

Rates as of Sunday, December 24, 2023 at 6:30 AM

How to find and compare FHA interest rates

With Bankrate’s FHA mortgage rate table, you can receive tailored-to-you quotes from lenders by plugging in your location and basic details about your finances. This can give you a ballpark sense of what a loan might cost you.

To get a formal FHA mortgage offer, first decide on a loan term: either 15 years or 30. A shorter term comes with a lower interest rate, reducing your overall expense, but has the downside of a higher monthly payment.

You can seek offers from a variety of lender institutions or compare offers online. Be sure to talk with your bank or any other financial institution that you have an existing relationship with, since it might offer special rates or deals to current customers. If you’re not sure where to start, check Bankrate’s picks for some of the best FHA lenders.

Lender compare

Compare mortgage lenders side by side

Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.

Lender

Garden State Home Loans

NMLS: 473163

State License: MB-473163

3.1

Rating: 3.1 stars out of 5

Bankrate Score

Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.

What is an FHA loan?

FHA loans are government-backed mortgages for single-family and multifamily homes. They’re offered through FHA-approved lenders and insured through the Federal Housing Administration (FHA).

FHA loans are more accessible than conventional loans in that they have a lower credit score requirement: at least a 580 if you can put 3.5 percent down as a down payment, or 500 if you can put 10 percent down. Because of this, FHA loans are popular among first-time homebuyers, borrowers on tighter budgets and those who have lower credit scores.

FHA loan requirements

FHA loan limits: $498,257 for a single-family home; higher in costlier counties and for multifamily homes
Minimum credit score: 580 with a 3.5% down payment, or 500 with a 10% down payment
Maximum debt-to-income (DTI) ratio: Up to 50%
Mortgage insurance premiums (MIP): 1.75% of your loan principal upfront; monthly premiums thereafter based on amount you borrow, down payment and loan type
Financial and work history: Proof of consistent employment and income

FHA loan limits

Each year, the FHA updates its lending limits, or the maximum amount the agency will insure for a given area and type of property. These limits are influenced by mortgage market-makers Fannie Mae and Freddie Mac’s conventional loan limits. For 2024, the national ceiling is $498,257 for a single-family home, and up to $1,149,825 in high-cost areas.

FHA mortgage insurance

FHA loans require borrowers who put down less than 20 percent to pay mortgage insurance premiums (MIP). Mortgage insurance costs add a meaningful amount to your monthly payment, so keep these costs in mind when you’re budgeting for a home.

There are two types of premiums: the upfront mortgage insurance premium (1.75 percent of the base loan amount) and an annual mortgage insurance premium (0.15 percent to 0.75 percent, depending on the loan term, loan amount and the loan-to-value (LTV) ratio). The annual premium is owed for the loan’s lifetime if your down payment is less than 10 percent; if you put down at least 10 percent, however, the premiums can be removed after 11 years.

Read more about FHA loan requirements.

Pros and cons of FHA loans

Pros

Low down payment requirement
Friendly to first-time homebuyers (includes those who have not owned a home for at least three years)
Financing for mobile homes and factory-built homes
May accommodate people who own the land where the home will be located and those who live in a mobile home park
Can lock in a low rate without a large down payment

Cons

Borrower required to pay two types of mortgage insurance: an upfront mortgage insurance premium (MIP) and an annual premium
Require that the house meet certain standards, which decreases buying options

Should you get an FHA loan?

An FHA loan can be a viable path to homeownership for many types of buyers, especially if you have a lower credit score. An FHA loan can also work well if you don’t have much down payment savings. If you have a minimum 580 credit score, you’ll only need to put 3.5 percent down.

FHA loan FAQ

Written by: Jeff Ostrowski, mortgage reporter for Bankrate

Jeff Ostrowski writes about the U.S. housing market for Bankrate. He has appeared on CNBC and numerous radio and television outlets to discuss his reporting about real estate trends.

Mortgage rates in other states

Sure, I'd love to help break down the concepts mentioned in the article about mortgages and FHA loans.

Mortgages and FHA Loan Concepts:

1. Mortgages: Mortgages are loans used to purchase or refinance a home. They come in various types, including fixed-rate mortgages (FRM) where the interest rate remains constant throughout the loan term and adjustable-rate mortgages (ARM), which have rates that fluctuate based on market conditions.

2. FHA Loans: FHA loans are government-backed mortgages insured by the Federal Housing Administration (FHA). These loans are designed to assist homebuyers who might have lower credit scores or can't afford hefty down payments typically required by conventional loans. They allow down payments as low as 3.5% for borrowers with a credit score of 580 or higher.

3. Mortgage Rates: Mortgage rates vary based on economic factors and are influenced by the market. They impact the cost of borrowing money to purchase a home, determining the monthly payment amount.

4. APR (Annual Percentage Rate): The APR encompasses the annual cost of borrowing, including interest and fees, providing a clearer picture of the true cost of the loan.

5. Refinancing: Refinancing involves replacing an existing mortgage with a new one, usually to obtain better terms, interest rates, or to tap into the home's equity.

6. Lender Comparison: Comparing lenders is crucial to finding the best mortgage terms. It involves evaluating interest rates, fees, customer service, and lender reliability to choose the most suitable option.

7. Mortgage Insurance: For FHA loans, mortgage insurance is required. This insurance protects the lender in case the borrower defaults on the loan. Borrowers pay an upfront premium and annual premiums, which affect monthly payments.

8. FHA Loan Requirements: These include minimum credit score thresholds, debt-to-income ratios, and proof of stable income. FHA loan limits vary by location and property type.

9. Pros and Cons of FHA Loans: Pros include lower down payments and accessibility for buyers with lower credit scores. However, cons involve mortgage insurance costs and property standards that limit home options.

10. Comparison Shopping: Comparison shopping for mortgages is crucial to find the most competitive rates and terms, potentially saving thousands of dollars over the loan's life.

This article provides insights into the importance of understanding mortgage rates, choosing the right type of mortgage, comparing lenders, and the specific aspects related to FHA loans and their qualifications. It emphasizes the significance of informed decision-making when it comes to securing a mortgage to finance a home purchase or refinance.