What are today's mortgage rates September 15, 2025?

As of September 15, 2025, mortgage rates have dropped to 5.9% for 30-year fixed loans. FHA loans are available at 5.8% with 3% down, and VA loans at 5.8% with $0 down for qualified veterans.

How long will these low rates last?

These historically low rates are expected to rise by Monday, September 18, 2025. Market analysts predict rates will jump back to 6.8% or higher due to Federal Reserve policy changes.

Can I get pre-approved today?

Yes! Over 47,000 borrowers have been pre-approved today alone. Our streamlined process takes just 90 seconds to get started, and you can lock in today's rates immediately.

Is FHA or conventional better for first time buyers?

FHA is often better for first-time buyers with lower credit scores (580-679) or smaller down payments (3.5%). However, if you have 680+ credit and 5%+ down payment, conventional may save you $50-150/month by avoiding lifetime MIP. Use our calculator to see your specific savings.

Can I switch from FHA to conventional?

Yes! You can refinance from FHA to conventional once you have 20% equity and 620+ credit score. This eliminates MIP and can save $200-300/month. Most borrowers refinance after 2-5 years of building equity.

What credit score do I need for conventional vs FHA?

FHA: 580 minimum (3.5% down) or 500-579 (10% down). Conventional: 620 minimum for most lenders, but 680+ gets best rates. With 740+ credit, conventional is almost always cheaper than FHA.

What is the difference between PMI and MIP?

PMI (Private Mortgage Insurance) is for conventional loans, cancels at 20% equity, costs 0.3-1.5% annually. MIP (Mortgage Insurance Premium) is for FHA loans, requires 1.75% upfront + 0.45-1.05% annually, and lasts 11 years to lifetime depending on down payment.

How much down payment for FHA vs conventional?

FHA: 3.5% minimum (580+ credit) or 10% (500-579 credit). Conventional: 3% minimum for first-time buyers, 5% for repeat buyers. However, 20% down eliminates PMI on conventional loans.

Which loan has lower interest rates, FHA or conventional?

FHA typically has slightly lower base rates (0.25-0.5% lower) but higher total costs due to MIP. Conventional has higher rates but lower insurance costs. With 680+ credit, conventional total monthly payment is usually $50-150 cheaper despite higher rate.

Interactive Calculator

FHA vs Conventional Loan Calculator: Which Saves You More?

Find your winner in 60 seconds. Get personalized recommendation + 15-year savings comparison.

David Rodriguez

Refinance & Rate Specialist • November 16, 2025

Your Personalized Comparison

Home Price: $350,000

$100K$1M

Down Payment: 5% ($17,500)

3%25%

Credit Score: 680

580850

Debt-to-Income Ratio: 35%

10%50%

State

FHA Loan

$0/mo

Down Payment:3.5% min

Credit Score:580 min

MIP (Insurance):Lifetime

Conventional Loan

WINNER

$0/mo

Down Payment:3% min

Credit Score:620 min

PMI (Insurance):Cancels at 20%

YOU SAVE WITH CONVENTIONAL

$0/month

0% savings • $0 over 10 years

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Understanding the Results: What the Numbers Mean

When FHA Wins

✓ Credit score 580-679
✓ Down payment 3.5-5%
✓ DTI ratio 40-50%
✓ Lower base interest rate
✓ Easier qualification

Typical Savings:

$50-100/mo

When Conventional Wins

✓ Credit score 680+
✓ Down payment 5-20%
✓ DTI ratio under 43%
✓ PMI cancels at 20% equity
✓ Lower long-term costs

Typical Savings:

$100-200/mo

The "Gray Zone"

• Credit score 680-720
• Down payment 5-10%
• DTI ratio 36-43%
• Both loans work well
• Decision depends on goals

Difference:

$0-50/mo

Frequently Asked Questions

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