The check digits enable the sending bank (or its customer) to perform a sanity check of the routing destination and account number from a single string of data at the time of data entry.
Generally, interest rates on FHA-backed mortgages are competitive with conventional mortgages. A quick scan of interest rates for 2012 reveals that FHA mortgages feature rates of about 3.33 percent. The FHA states that the average interest rate for a 30-year fixed loan on a single-family home is about 4.06 percent.
But with a premium of 0.85 percent, borrowers will only pay $1,700 for the same loan. The reduced annual rate does not apply to those borrowers who are taking out 15-year FHA-backed mortgage loans. That yearly premium will still range from 0.45 percent to 0.95 percent of the loan balance.