Saturday, July 5, 2008

Calculating APR for FHA using the Current Index

Some lenders calculate the current fha apr using an index for mortgage backed securities. This may help borrowers who are comparison shopping mortgage loans with a truth in lending dicslosure. Interesingly, as this article will describe, many TILs are not calculated the same way and particularly becuase the current fha apr differs depending on the variable raet adjustment.

A current fha apr is easily determined for the fixed rate loan. Variable rates however do not use a current fha apr in the same way. This makes the fha apr different currently from lender to lender. After the interest rate is determined using the appropriate current fha apr, then the point of this article is to know how that differs from the APR or annual percentage rate of other fha loan types.

Was the FHA an APR that was used for a variable rate loan? Variable rate loans are also knows as adjustable rate mortgage loans and they are required by the TILA to have an APR disclosed properly. This should result in a current fha apr that is well within the tolerance for the FHA mortgage annual percentage rate.

I'm just about done typing current fha apr for the day. Perhaps you could check back and see if current fha apr has moved higher in the search engines and if not, the the FHA APR is not currently focused on the apr in general for FHA loans. This post made no sense whatsoever.


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