Finance rate???

Question

Is a 6.6275% a good finance rate for my home or is it a little high??? I live in Oklahoma and the purchase price of my home is $78,900, but the morgage guy says the loan will cover the property tax but not the home insurance...does that sound right? If so....about how much a year will home owners insurance be??

Answer 1

The average going price is about 7%, many mortgages also collect the property tax and homeowner insurance from you as part of the mortgage payment but I guess there's nothing wrong with them not doing that, either way you're paying it. The cost of your home is sooo low compared to where I live. I don't know how they price the isurance but it is based on the value of the home among other factors. If the interest rate is too high for you then you can pay some points and get it reduced by 1/4% for each point.

Answer 2

That's a bit above market for top credit, but in line with market for "small" loans, i.e. any first mortgage under $100,000.

The loan NEVER covers either property taxes or homeowner's insurance. Most lenders will require you to pay impounds each month towards the annual bills for property taxes and homeowner's insurance and roll that together with the P & I for a single all-inclusive payment, but they are still separate from the loan itself.

You'll need to call around to get quotes for homeowner's insurance. Before you start calling, you'll need to know the distance from the house to the nearest fire hydrant as well as the name of the fire department that is legally obligated to respond and the distance to the firehouse.

Answer 3

Rate is dependent on your credit worthiness as a borrower. You may want to find out if they have upsold the rate (usually a bank will pay the mortagge broker some monies to sell the borrower a higher rate..so as ask about your yield spread)

Estimate insurance as 3/1000 of assessed value of the property....