Today’s lowest FHA mortgage interest rates are at or below 5% as conventional home loan rates are well below 5% in the early days of May 2010. Many mortgage lenders are reporting that FHA mortgage rates are coming in very close to conventional mortgage rates. With this being the case it should come as no surprise to see homeowners qualifying for FHA rates under 5% in May of 2010.


Before deciding that an FHA mortgage is right for you it is important to understand that there are insurance obligations with these mortgage types. While these insurance obligations are usually not a significant amount of money it is money that can add up and make your mortgage payment higher than a conventional mortgage.

It may be a wise decision to take a slightly higher interest rate on a conventional mortgage so you can avoid the insurance obligations. All mortgage lenders will explain the insurance costs but it would be up to you to determine which mortgage type would suit your financial position the best.

Author: Mike Garner