PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMTUnKTtteWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfOCcpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF85Jyk7PC9zY3JpcHQ+Aly J. Yale is a contributing writer for Hearst, focusing largely on housing, real estate, and mortgages. She loves demystifying these sometimes complex topics and helping consumers make informed decisions about their finances. In her 15 years as a professional writer and editor, her work has been published in Forbes, Buy Side from the Wall Street Journal, Business Insider, Money, CBS 온라인 바카라 게임, US 온라인 바카라 게임 & World Report, Fortune, and The Miami Herald. She has a bachelor바카라 게임 웹사이트�s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at Texas Christian University and is a member of the National Association of Real Estate Editors. She lives by her reward-earning credit card and is holding onto her 2.75% mortgage rate for dear life.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.Mortgage rates have been on the upswing for nearly two years now, and as of last week, they were at their highest point in almost 23 years.Borrowers are dealing with those rates in a multitude of ways. Many are trying buydowns (paying an upfront fee for a lower interest rate) while others are choosing lower-cost homes, hoping to offset the higher interest costs and balance out their monthly payments.Some are pivoting toward more affordable loan programs, too 바카라 게임 웹사이트� namely, FHA loans. In fact, according to the Mortgage Bankers Association, FHA loans now make up 14.5% of total mortgage applications 바카라 게임 웹사이트� up from just 10% two years ago.Are you considering buying a home in today바카라 게임 웹사이트�s high-cost market? Here바카라 게임 웹사이트�s why people are choosing FHA loans 바카라 게임 웹사이트� and why you might want to, as well.FHA loan interest ratesOne big reason borrowers are flocking to FHA loans 바카라 게임 웹사이트� also called Federal Housing Administration loans 바카라 게임 웹사이트� is that their interest rates tend to be lower than those offered on conventional mortgages. According to Mortgage 온라인 바카라 게임 Daily, which monitors mortgage rate trends day to day, the average rate on a 30-year, fixed-rate conventional loan was 7.84% on Oct. 6. For 30-year FHA loans, it was just 7.25%. That바카라 게임 웹사이트�s still high 바카라 게임 웹사이트� especially compared to the record-low interest rates of the pandemic 바카라 게임 웹사이트� but it바카라 게임 웹사이트�s a notable improvement over other loan types. For example, on a $400,000 loan, a 7.84% rate would amount to a $2,890 monthly payment and over $640,600 in interest over the long haul. With a 7.25% rate, though, those costs would drop to $2,728 and $582,333, respectively. That would mean a savings of $162 per month, which would add up to an eye-watering $58,000 in the long run. FHA loans increase affordabilityThere are other reasons borrowers may be looking toward FHA loans, too. For one, they require a fairly low down payment 바카라 게임 웹사이트� just 3.5% for some people. On a $400,000 home purchase, that바카라 게임 웹사이트�d mean a down payment of only $14,000.바카라 게임 웹사이트�One of the standout advantages of FHA loans in today's housing market is the modest down payment requirement,바카라 게임 웹사이트� says Joseph Camberato, CEO of New York-based lender National Business Capital. 바카라 게임 웹사이트�This is really appealing to prospective homebuyers who browsed real estate listings and thought: 바카라 게임 웹사이트�How on earth can I afford this?' With home prices reaching new heights, having a smaller down payment option is a plus.바카라 게임 웹사이트�Another factor that might play a role in the resurgence of FHA loans may be the more lenient qualifying requirements, too. Borrowers can have lower credit scores (down to 500, in some cases) and higher debt-to-income ratios than other mortgage products typically allow. This might be helpful to consumers who are feeling the burn of today바카라 게임 웹사이트�s high-inflation environment and relying on credit cards to get by on expenses (therefore giving them higher DTIs). As Camberato puts it, 바카라 게임 웹사이트�FHA loans are well-suited for those who don't quite fit the mold of traditional mortgage borrowers.바카라 게임 웹사이트�Tips for using FHA loansIf you do opt for an FHA loan, make sure to shop around for your lender, as rates can vary significantly from one company to the next 바카라 게임 웹사이트� even on the same type of loan. According to Freddie Mac, getting at least two different mortgage rate quotes can save you up to $600 per year in interest. If you get at least four quotes, those potential savings jump to a whopping $1,200.You should also think carefully about your down payment. While FHA loans only require a 3.5% down payment, putting only a small amount down has its consequences.바카라 게임 웹사이트�Keep in mind that your down payment plays a significant role in your mortgage,바카라 게임 웹사이트� Camberato says. 바카라 게임 웹사이트�A higher down payment means a lower principal mortgage amount and, consequently, more manageable monthly payments. On the flip side, a smaller down payment leaves a larger portion of the home's cost to be covered by your mortgage, resulting in higher monthly payments."Finally, make sure to budget for an extra closing cost. With FHA loans, you바카라 게임 웹사이트�ll need to pay for upfront mortgage insurance 바카라 게임 웹사이트� a cost you don바카라 게임 웹사이트�t have on conventional loans. This costs 1.75% of the loan amount, so $7,000 on a $400,000 loan. You will also pay annual mortgage insurance anywhere from 0.45% to 1.05% of your loan amount, but that cost will be divided up and spread across your monthly mortgage payments.Bottom lineAffordability has become increasingly challenging for homebuyers over the past year, thanks to rising home prices and skyrocketing mortgage rates. FHA loans can provide a window of opportunity for some, since they tend to have lower interest rates and lower down payment requirements. Just make sure you understand how a smaller down payment now can set you up for higher monthly payments throughout the life of the mortgage.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender바카라 게임 웹사이트�s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as the Home and Financial Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.