February has seen a very slow rise in mortgage interest rates. Despite the slight upticks, mortgage rates continue to be among the lowest in US history. If you need to lock in a rate for a new purchase or refinance for a closing this month, now is a good time to lock in since there continues to be only very minor fluctuations in the day to day mortgage rates. If you have a few weeks to wait we may see rates slide back down to around 3.5-3.6% closer to March. What’s happening in the European economy and Greece specifically, continues to be a large factor in our interest rate fluctuations.

Currently, the most frequently quoted conventional 30yr fixed rates for top tier borrowers are 3.75% and 3.875%. FHA and VA loans boast even lower quotes closer to 3.25%. A 15 year fixed loan may get you the best rate at close to 3.00%. Be sure to ask your mortgage lender to show you all available options.

When people see the low rates you can get with an FHA loan, it appears to be a very appealing option. FHA loans are home loans insured by the Federal Housing Administration. FHA loans are, in general, easier to qualify and can require a smaller down payment than conventional loans. However, they can also require expensive premiums to help buffer the additional risks associated with the less stringent loan requirements and lower down payment. It is also important to note that not all properties can be purchased with FHA loans. If you are interested in learning more about FHA loans to understand if they may be a good fit for you, start by reading “FHA Home Loans 101: An Easy Reference Guide“.