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.
That's $3,500 on a $200,000 mortgage loan. That cost is added to the principal balance of your loan. So your loan amount is actually $203,500. However, effective Jan. 26, 2015, the FHA reduced the annual mortgage insurance premium on 30-year fixed-rate FHA loans from 1.35 percent to 0.85 percent of the loan balance.This can lead to significant savings. On a $200,000 loan, the annual premium of 1.35 percent would cost borrowers $2,700.n conventional loans, sellers can only pay up to 3 percent. For a lot of homebuyers, that's a big benefit, says Pascarella. A lot of buyers, especially first-time buyers, can save enough money for a down payment, but then they have nothing else. An FHA loan allows sellers to contribute more to closing costs..