Is a FHA 30 yr fixed mortgages interest rate changeable?

Posted on Oct 18, 2012 in FHA Information

Question by Joshua K: Is a FHA 30 yr fixed mortgages interest rate changeable?
I was told by someone that depending on the loan the interest rate can go down but not up on some FHA 30 fixed rate mortgages. Is this true?
I know its fixed and I know what that means but it is a FHA loan. For example I also heard that they can be assumable which standard loans are not. Are they also not assumable? Have I been missinformed here also?

Best answer:

Answer by alterfemego
Not on a fixed rate. If a lower rate is available, approved side effects you need to refinance.

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5 Comments

  1. “Fixed” means the rate does not change, either up or down. What the rate was at the time you took out the mortage is what the rate would stay for the entire 30 years, if you had the mortgage that long.

  2. No. But you can go to the same or different lender and refi at a lower rate. Check around and watch closing costs.

  3. It depends. It is possible that it could go down but it’s probably not likely to do so. It cannot go up. It would go down if interest rates dropped considerably. FHA is a government loan program.

  4. you can do a ‘STREAMLINE REFINANCE’ to lower the rate….they dont ask for income docs or new appraisal.
    closing costs are lower on the streamline refi’s.

    fha loans are assumable…and you can transfer your interest rate to the new owner…or the owner can get a lower rate

  5. I’m afraid the info you’ve been given is a bit wrong.

    If a loan is a fixed-rate loan, regardless of whether it’s an FHA loan or from another source, the rate is fixed, meaning it can’t change.

    FHA loans are no different than other loans except they are insured by the Federal Housing Administration and a little bit different fees and process than a loan that is not FHA insured.

    If you get an FHA loan with a fixed rate of 6.5%, for example, the rate on your loan is 6.5% for the life of the loan. It can’t go up and it certainly can’t go down.

    Loans that go up or down are adjustable rate loans, not fixed rate loans. And again, whether a loan is fixed or adjustable has nothing to do with being an FHA loan.

    FHA is a great solution for people without a large downpayment or with less than perfect credit. In fact, there is no minimum credit score with an FHA loan. Several factors go into qualifying and unlike other loans, the credit score can actually be pretty low.

    Hope this answers your question!