What DOES determine your interest rate on an FHA LOAN??
Thanks!
That's a good question, probably has two different answers:
FHA loan rates are like conventional rates in that they generally are tied to economic news...generally. So good economic news = higher rates. The last few years' economic news = lower rates. This week, for example, the biggest mover will be the jobs report on Friday. I'd love to see rates go up .25% because unemployment plummets lower.
What is unique, relative to conventional, about FHA is that the rate itself is not adjusted solely based on the credit score. So on FHA, a 640 and a 740 receive the same rate. That's significant. On conventional the difference in rate can be .50-.75% higher for that lower score.
