Government does NOT regulate FHA mortgage rates

A community action research report concluded that in areas of high minority population, home buyers are more likely to end "high cost" the Federal Housing Administration loans. Those buying in low-income neighborhoods and more attention.

Lenders argue that people with lower credit scores are charged higher interest rates, this has nothing to do with their race or nearby. However, the data collected by the government also supports this point - even those with good credit could get a "high cost" mortgage loans, if they purchased a minority community-based homes. "High cost" mortgage loans are interest rate by the Federal Reserve has at least 3% over the same length on a current rate of Treasury securities higher. Then, 30-year Treasury hovered around 4.1%, which means that high-cost FHA loans today, the annual interest rate of 7.1% or higher.

FHA loans have no credit scores lower surcharge


Although Fannie Mae and Freddie Mac need to adjust risk-based pricing, FHA has no such requirement surcharge. FHA loans are insured by the Federal Housing Administration loans, so risky loans, at no additional cost or risk of the loans issued by lenders. There is no reason to believe that a low credit score borrowers Federal Housing Authority will need to pay a higher interest rate. Even if the lender can prove that the borrower is also in poor areas of FHA financing in the case of low credit scores are still no good reason for these mortgage borrowers different prices.

So, if it is not due to credit problems, why some borrowers to pay?

I do not like shopping


The problem with the credit loans people do not like shopping. It's humiliation. So when they approved the financing of them, they are so happy, they would not contribute to a better treatment.

This is a government loan. Is not the government set prices?

Inexperienced borrowers tend to believe that the Government requires the government loan pricing. This is not true, who is by the Federal Housing Authority loans to develop their own private lendes on the market were found.

It depends on you.

It is your responsibility, the lender's mortgage rates comparisons. And it is not so difficult. Try the form on this website as the first. To see what's the use, for comparison, to find their own appropriate.

The new rules easier


Yes, for non-FHA loans may be risk-based pricing adjustment, if you have bad credit or a small down payment, or need cash to refinance. However, the reform of the new mortgage, loan officer marketing loan can not exceed the sales revenue, a fierce bargain loans, a higher commission innocent people. So, you need to find the best lender deal, but you will not need (because it makes some illegal lenders, rather than other special treatment) each line of the negotiations.