Today’s lowest FHA mortgage rates are coming in under 5% for some borrowers. Banks such as Bank of America, Chase, Citigroup and Wells Fargo have reported that FHA mortgage rates are coming in very close to conventional mortgage rates. Before deciding that an FHA mortgage is correct for you it is important to understand that there are insurance obligations.


When taking out an FHA mortgage you will likely see your monthly mortgage payment slightly higher because there are insurance costs involved. It is sometimes smarter to take out a conventional mortgage with a slightly higher interest rate because you can avoid these insurance obligations.

Before making any final decision between an FHA mortgage in a conventional mortgage it is very important to do your research. You may want to call a local lender and find out what options are available. It is important to understand that there are more lenders available than just Bank of America, Chase, Citigroup and Wells Fargo.

With mortgage interest rates very low at the present time it would be a wise decision to take advantage of the low interest-rate environment. No one knows when interest rates could move up but when they do there is a very good possibility that they will move up quickly.

Author: Heather Best