The average rate for a 30-year loan was around 4.25%, while the 15-year fixed-rate loan was around 3.25%, both slightly below their historic lows.
For those looking to get into a new home, the FHA mortgage rate was extremely attractive due to its lower down payment requirements and exposure to less risk than a conventional loan. Due to the FHA mortgage rate being lower than most other loans, it was a great option for many first-time homebuyers and those with less-than-stellar credit.
The FHA did warn potential buyers and borrowers to carefully consider their options before making a move, however. The low rates may be attractive, but borrowers should look into multiple lenders to weigh various aspects such as closing costs and repayment terms.
In addition to the low mortgage rates, the FHA was also expanding its loan programs and services. They had recently introduced the Federal Housing Administration Title 1 Loan Program, which helps borrowers take out loans for home improvements like repairing a roof, upgrading plumbing, updating a kitchen, and more, without having to put up the entire cost in cash. The Title 1 loan program also had a low-interest rate of 5.35%, making it an attractive option for homeowners.
In summary, the FHA mortgage rate in September of 2014 was significantly lower than most other loan rates. This made it a great option for first-time homebuyers and those with less-than-perfect credit, because of its lower down payment requirements and less exposure to risk. The FHA was also offering the Title 1 Loan Program which enabled borrowers to take out a loan for home improvements at an interest rate of 5.35%. However, it is important to weigh all options carefully before deciding on one, by comparing different lenders and their closing cost and repayment terms.
This article was contributed on Nov 02, 2023