FHA rates higher on 203(k)?

[700orbust]

We have been approved for a FHA loan and have gone with a streamline 203(k). The rate is 5.25% with a 1.5% origination fee. Is this about right? Seeing the other FHA loan thread at 4.25% has me wondering. I was told that (k) loans carry higher interest rates.

[Anonymous]

they do tend to run higher.  Ours was 5.15% when we closed in August.  It might have been lower if we paid points but we chose not to

[Anonymous]

5.25 with 1.5% fee might be a bit high but it is hard to tell without knowing your file.  IT appears you have a midscore in the 660's which I would not think would hit you for a higher rate (if your midscore was in the low 600's I could see a higher rate hitting you.)  That said, I know there is alot more work and hassle for the lender with these loans so they tend to charge higher % and obviously in this case, some points.  In the end, 5.25 is a really historically low rate anyways and unless you think you can switch lenders midstream and not loose the deal, I would do it.  There is no guarantee it will come out lower somewhere else, but it can not hurt to make a round of calls.  Be careful though because another inquiry will hit your scores and probably drop them below 660 (which may become an issue...who knows) 

[SDChrgrboy2]

I locked in a 5% rate with no poiints for an FHA 203k. streamline refi  Hopefully closing in 2 weeks

[Anonymous]

I would guess that a stramline refi would be less expensive than a new loan.

[Anonymous]

We financed our 203(k) streamline thru Wells Fargo and closed a couple weeks ago.  The rate was slightly higher than a regular FHA, I believe when we locked the regular FHA was at 4.50 and we locked our (k) at 4.75, no points.  Then the closing date was missed due to bank error and they kindly dropped our rate to 4.625 30 years fixed, no points.  We've already had our first draw from the renovation escrow and rehab is underway.  It seems like most lenders that do k's charge a slightly higher rate.

[700orbust]

Thanks for the info...I guess I'll stick to what I've got. The rehab part is important for this purchase, so I can't give that up in the interest of lower rates. 

[Anonymous]

Generally, 203k rates are a little higher than FHA. When FHA was at 4-4.25%, the 203k's were lower as well.

Technically, the K's rates do vary based on your scenario (loan amount, state).  That variance is .125%'s, nothing big.  Realistically, where you are borrowing from determines more about how good your deal is.  Just based on the markup, it sounds like you are using a broker. 

If that quote was from yesterday or Friday, you were being overcharged probably .25% in rate and at least 1% of those 1.5% points.