Compare today’s FHA mortgage rates
Find and compare current FHA mortgage rates from lenders in your area. Federal Housing Administration loans have lower credit score and down payment requirements, which can help first-time home buyers and borrowers with credit challenges.
About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.
Mortgage rate trends (APR)
NerdWallet’s mortgage rate insight
On Thursday, December 2nd, 2021, the average APR on a 30-year fixed-rate mortgage fell 4 basis points to 2.952%. The average APR on a 15-year fixed-rate mortgage fell 1 basis point to 2.267% and the average APR for a 5/1 adjustable-rate mortgage (ARM) remained at 2.720%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 17 basis points lower than one week ago and same as one year ago.
A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.
Current mortgage and refinance rates
|30-year fixed-rate FHA||2.364%||3.092%|
|30-year fixed-rate VA||2.463%||2.771%|
How do I find current FHA interest rates?
NerdWallet’s mortgage rate tool can help you find competitive FHA mortgage rates tailored to meet your needs. In the “Refine results” section, enter a few details about the type of loan you’re looking for (make sure you choose "Yes" under "Eligible for an FHA loan?") and you’ll get a customized interest rate quote in moments, without providing any personal information. From there, you can start the process of getting your FHA loan and be on your way to making offers. It’s that easy.
Do FHA loans have lower interest rates?
An FHA loan is a mortgage the Federal Housing Administration insures. FHA loans have relaxed lending standards to help borrowers who don’t qualify for a conventional mortgage, but they do not typically have lower interest rates. Credit score has a bigger impact on mortgage rates than loan type. If you have a high credit score, your FHA loan rate will probably be lower than that of someone with a low credit score.
What is a good FHA interest rate?
Many factors influence the mortgage rate you’re offered, from forces that are pretty much out of your control (like the economy) to your personal financial details. The best way to find out if you’re being offered a good FHA loan interest rate is to apply with multiple lenders. That way, you can compare loan offers and determine which has the best combination of rate and fees.
Do FHA interest rates vary by lender?
Yes, FHA loan rates vary by lender, so it can pay to comparison shop. Once you’ve found a few lenders that seem right for you, compare each one.
If you’re approved, each lender will provide you with a Loan Estimate form. This will let you compare not only FHA mortgage rates, but also origination fees, closing costs and everything else you’ll pay over the life of the loan. Comparing loan estimates from more than one lender will give you confidence that you’re getting a good rate and that you’re getting the right loan for your situation.
Are FHA loans fixed-rate?
Though the vast majority of FHA loans are 30-year, fixed-rate mortgages, other options are available, including both shorter-term fixed-rate mortgages and adjustable rate mortgages (ARM). In recent years, fixed-rate mortgages have been much more common, as home buyers have sought to lock in low interest rates. But if you don’t plan to stay in the home long, an ARM may be worth a look.
FHA Loan Pros and Cons
An FHA loan is a good option for first-time homebuyers who need a low down-payment requirement. If you qualify, you can get a mortgage with as little as 3.5% down.
FHA loans are also beneficial for those who have weak or damaged credit. Some FHA mortgage lenders allow credit scores as low as 500, though a higher score will decrease your down payment requirement. If you’ve had financial difficulties in the past or you just haven’t had time to build a strong history of on-time payments, an FHA loan could be the answer to your mortgage needs.
Not only can FHA loans be used to buy detached single-family homes, multifamily homes, townhomes and condos, they can also be used to buy manufactured and mobile homes. And a variation of the FHA loan, called the 203(k), allows you to finance both a home purchase and necessary renovations with the same mortgage.
The biggest drawback of FHA loans is that you’ll have to pay FHA mortgage insurance. This protects the lender’s stake in the loan if you default, but the premiums increase your monthly payments. And unlike with private mortgage insurance on a conventional loan, FHA mortgage insurance can’t be canceled.
How are mortgage rates set?
At a high level, mortgage rates are determined by economic forces that influence the bond market. You can’t do anything about that, but it’s worth knowing: Bad economic or global political worries can move mortgage rates lower. Good news can push rates higher.
What you can control are the amount of your down payment and your credit score. Lenders fine-tune their base interest rate on the risk they perceive to be taking with an individual loan.
So their base mortgage rate is adjusted higher or lower for each loan they offer. Higher mortgage rates for higher risk; lower rates for less perceived risk.
So the bigger your down payment and the higher your credit score, generally the lower your mortgage rate.
» MORE: Get your credit score for free
What’s the difference between interest rate and APR?
The interest rate is the percentage that the lender charges for borrowing the money. The APR, or annual percentage rate, is supposed to reflect a more accurate cost of borrowing. The APR calculation includes fees and discount points, along with the interest rate.
APR is a tool used to compare loan offers, even if they have different interest rates, fees and discount points.
A major component of APR is mortgage insurance — a policy that protects the lender from losing money if you default on the mortgage. You, the borrower, pay for it.
Lender usually require mortgage insurance on conventional loans with less than 20% down payment (in a home purchase) or less than 20% equity (in a refinance).
FHA loans have different mortgage insurance requirements. Borrowers have to pay an upfront mortgage insurance premium equal to 1.75% of the total loan amount, regardless of the down payment amount. If you put down less than 10%, you’ll pay FHA mortgage insurance for the life of the loan. If you pay 10% or more, you’ll make insurance payments for 11 years.
You can look at the table above to see the current FHA interest rate and APR for a 30-year, fixed-rate mortgage.
Learn more about FHA loans:
Check out our other mortgage and refinance tools
Get your true budget and find a home with ease.
CalculatorCalculate your mortgage
Figure out your estimated payments the easy way.
CalculatorShould You Refinance
Calculate how much you can save by refinancing
Mortgage rates by loan type
- 30-year fixed mortgage rates
- 20-year fixed mortgage rates
- 15-year fixed mortgage rates
- 10-year fixed mortgage rates
- 7/1 ARM mortgage rates
- 5/1 ARM mortgage rates
- 3/1 ARM mortgage rates
- Condo mortgage rates
- Conventional mortgage rates
- Investment property mortgage rates
- Second home mortgage rates
- FHA mortgage rates
- VA mortgage rates
- Jumbo mortgage rates
Mortgage and refinance rates by state
- Alabama mortgage and refinance rates
- Alaska mortgage and refinance rates
- Arizona mortgage and refinance rates
- Arkansas mortgage and refinance rates
- California mortgage and refinance rates
- Colorado mortgage and refinance rates
- Connecticut mortgage and refinance rates
- Delaware mortgage and refinance rates
- District of Columbia mortgage and refinance rates
- Florida mortgage and refinance rates
- Georgia mortgage and refinance rates
- Hawaii mortgage and refinance rates
- Idaho mortgage and refinance rates
- Illinois mortgage and refinance rates
- Indiana mortgage and refinance rates
- Iowa mortgage and refinance rates
- Kansas mortgage and refinance rates
- Kentucky mortgage and refinance rates
- Louisiana mortgage and refinance rates
- Maine mortgage and refinance rates
- Maryland mortgage and refinance rates
- Massachusetts mortgage and refinance rates
- Michigan mortgage and refinance rates
- Minnesota mortgage and refinance rates
- Mississippi mortgage and refinance rates
- Missouri mortgage and refinance rates
- Montana mortgage and refinance rates
- Nebraska mortgage and refinance rates
- Nevada mortgage and refinance rates
- New Hampshire mortgage and refinance rates
- New Jersey mortgage and refinance rates
- New Mexico mortgage and refinance rates
- New York mortgage and refinance rates
- North Carolina mortgage and refinance rates
- North Dakota mortgage and refinance rates
- Ohio mortgage and refinance rates
- Oklahoma mortgage and refinance rates
- Oregon mortgage and refinance rates
- Pennsylvania mortgage and refinance rates
- Rhode Island mortgage and refinance rates
- South Carolina mortgage and refinance rates
- South Dakota mortgage and refinance rates
- Tennessee mortgage and refinance rates
- Texas mortgage and refinance rates
- Utah mortgage and refinance rates
- Vermont mortgage and refinance rates
- Virginia mortgage and refinance rates
- Washington mortgage and refinance rates
- West Virginia mortgage and refinance rates
- Wisconsin mortgage and refinance rates
- Wyoming mortgage and refinance rates