Rates
Why is FHA APR higher than the rate?
Short answer
Because APR includes UFMIP, annual MIP, and certain lender fees on top of the note rate. Those extra finance charges drive APR up.
Plain-English explanation
What this actually means.
On a typical FHA quote, APR is often 0.4–0.8% higher than the note rate just from MIP. That gap shrinks at lower LTV and shorter terms.
What can change the answer?
Where this can move.
Credit score, loan amount, LTV, points, lender credits, lock timing, and market movement can change the rate quoted.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.