FHA Rates vs Conventional Rates
Here is the 2026 view on fha rates vs conventional rates — what moves them and how to position yourself.
What to know
FHA base rates are frequently equal to or below conventional, but FHA's mandatory MIP often makes the all-in cost higher for strong-credit borrowers — compare payments, not just rates.
What affects your FHA rate
- Your credit score and down payment
- Loan term (15- vs 30-year)
- Discount points purchased
- The bond market and Fed policy
- Lender margins — which is why comparing quotes matters
Example payment by rate
| Rate | P&I on a $300,000 loan (30-yr) |
|---|---|
| 5.50% | $1,703 |
| 5.75% | $1,751 |
| 6.00% | $1,799 |
| 6.25% | $1,847 |
| 6.50% | $1,896 |
| 6.75% | $1,946 |
| 7.00% | $1,996 |
Rates move daily. Join the free FHA Notification Program for rate-change alerts so you can lock at the right time.
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Frequently Asked Questions
- FHA Rates vs Conventional Rates — the quick answer?
- FHA base rates are frequently equal to or below conventional, but FHA's mandatory MIP often makes the all-in cost higher for strong-credit borrowers — compare payments, not just rates.
- Are FHA rates lower than conventional?
- FHA base rates are often similar to or slightly below conventional, but FHA mortgage insurance can make the all-in cost higher. Compare total monthly cost, not just the rate.