I'm trying to buy a house. Whats the best interest rate i could get with decent credit?

Question

I am looking to hear from people who got a rate lower than 6%- and what type of loan was it. I'm trying to buy my first home and any advise on how to get a good rate is appreciated. Thanks!

Answer 1

In response to a previous post, an 80/20 loan is a very good option. Unless you get a FHA loan or one geared towards a First Time Home Buyer, the monthly payment including the 100% loan and PMI (Private Mortgage Insurance) is higher then an 80/20 loan. An 80/20 loan is a 80% Loan to Value (LTV) 1st Mortgage and 20% LTV 2nd Mortgage. Plus, the interest is generally tax deductible, where Mortgage Insurance is not. Mortgage Insurance is coverage that you pay to the lender to insure them that you pay your bills on time, it doesn't even protect you.

The other post was correct - in that, it's not just about the rate, but I wouldn't necessarily recommend looking for a no-cost loan since the fees are worked into your loan amount or interest rate. You need to see if it makes sense to you. If you're going to be staying in the home less than a couple years, that's probably a good deal, otherwise, it may be costing you more to do that, you'll want to compare the costs.

I am not aware of any rates lower than 6% (without buying the rate down) right now besides Adjustable Rate Mortgages that result in Negative Amoratization (which means you owe more than the home is worth). While great for some people, not good for the general population.

Buying the rate down is an option but one that should be carefully considered before deciding, there's temporary and permanant buy-downs, make sure it makes financial sense if you decide to do that.

I would recommend shopping around to determine the best situation for your scenario, since you're a First Time Home Buyer (FTHB), I would suggest checking with a company that offers programs for FTHB's, you can find some in your area at: http://lenderswhocare.org/ . I would also check with a Mortgage Broker, they have access to multiple lenders, so can usually get a better rate/program than a bank. I'd check with at least 3 people. I would recommend one who has FTHB programs and two Brokers. (Beware, there are Brokers out there who are just out to rip you off - that's why I suggest shopping two - if you find a good one, they'll pass the wholesale pricing onto you to save you money instead of the retail rates you'd get at a bank). The first time your credit is pulled, it's a HARD hit and WILL drop your score, but the credit bureaus take into consideration to shopping around so you don't get advantage of, but there is a time limit, so I'd shop around quickly so you don't pass the time limit and have your credit lowered even more.

Hope this helps, let me know if I can be of any additional assistance!

Answer 2

the cheapest rate right now is an FHA 1 year arm no fear though it can only move a point every year. They start right now around 4.25 % it would take at least two years for them to get to the current par rate. The Fed. Paused today and took the tone of balanced. what does that mean it means no hike in the prime rate for the 1st time in 17 months this will be good for you in locking your rate. Why would i say this because rates go in circles in two years the rate will probably be back down into the 5's witch would be a great time to move to the fixed rate mortgage, on the other hand if they go crazy you can only move 1% each year. This loan will require 3% down and will have p&I and PMI at a low rate. maybe something to concider.

Answer 3

I suggest you shop around for a loan. Talk to your bank, other banks, brokers. The credit check's will be soft hits and wont hurt your credit. See who is willing to make the best deal for you. Remember, its not only about the interest rate. There are other important factors too--like do you want a loan for 100%, are you willing to pay PMI? Do not get suckered into an 80/20 loan.

Since you have good credit and FHB, the lenders will want to be competitive for your loan/buisness.

Also, thing to remember you don't have to pay anyone any fees out of pocket if you have great credit. Any points, origination fees etc should come out of the loan not your pocket.

Answer 4

in case you have in no way borrowed formerly, your credit status could be low because of the fact there's no archives on it, in different words you have not got any credit historic previous and as a result no longer something on which the telephone company can base a lending determination. opposite to generally happening concept, interest & earnings have not got ANY impact on your credit status. it would be properly worth checking your credit document in case you concern. the main considerable gamers are: Equifax and Experian. you additionally can request a statutory reproduction at £2. A score above 475 is considered spectacular. it extremely is a outstanding theory to maintain a verify of your record interior the progression of id theft. Why do no longer you start up off with a PAYG telephone and then see in the event that they are going to enhance to a freelance after 6 months or so. attempt Vodafone or Virgin? on an identical time as I commend you for no longer getting into debt by applying borrowing heavily, why no longer attempt and build up some credit historic previous by applying making use of for a credit card (perchance with a low decrease so which you do no longer build up too plenty debt), and then attempt back in 6-twelve months? this might purely stand you in good stead for the destiny while, as an occasion, it extremely is extremely useful to observe for a private loan. you additionally can attempt different telephone companies or observe for a freelance on line; in basic terms because of the fact one company has mentioned no does no longer recommend others will too. wish this enables.

Answer 5

I work for United Lenders Group and I work with over 45 different banking companies so I could get you a mortgage loan no matter how your credit is
916-860-0804
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