On Wednesday, November 24, 2021, the national average 30-year FHA mortgage APR is
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year FHA Rate | 2.660% | 3.530% |
| 30-Year Fixed Rate | 3.140% | 3.300% |
| 20-Year Fixed Rate | 3.020% | 3.170% |
| 15-Year Fixed Rate | 2.440% | 2.670% |
Also to know is, are FHA interest rates lower?
Interest rates for FHA loans will be lower than a conventional loan when the borrower has a high credit score and a small down payment.
Beside above, is FHA cheaper than conventional?
“Typically, FHA is cheaper, with lower interest rates and cheaper mortgage insurance, though this is not always the case,” says Henry Brandt, branch manager of Planet Home Lending in Irving, Texas. “However, you have the chance to remove private mortgage insurance on a conventional loan one day without refinancing.
What is the downside of an FHA loan?
A major drawback of FHA loans is the high cost of FHA mortgage insurance, which must be paid for the life of the loan if you make the minimum 3.5% down payment. FHA county loan limits also curtail your buying power, since they’re set at 35% below conforming conventional loan limits in most counties in the U.S.
Why is my FHA interest rate so high?
Higher FHA mortgage rates
“FHA loans require more bureaucracy and special certification, so they cost more for lenders.” (Interest rates provided by HSH.com.