Friday, July 4, 2008

Too much talk about the Current FHA APR

Way too much talk about the importance of the current fha apr in the marketplace today. I mean if you are getting a mortgage loan with a 3% down payment and the loan can close on time then the current fha apr is not going to matter as much as the fixed interest rate portion or lock-in for the loan. You can lock in the loan at the current fha apr and that may vary from fha mortgage lender to mortgage lender.

The main thing to know about current fha apr is that the fha does not set the apr. the apr is a function of the loan amount less the prepaid finance charges and then they use that figure to calculate an amount financed. All of this goes into what is called a ‘federal box’ and this is on the federal truth in lending act or TILA. You can calculated the current fha apr from the truth in lending statement.

Today’s FHA APR currently.

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