What credit score will give you what kind of interest rate on a morgage loan of $250'000?

Question

My credit score is 720, what kind of interest rate on a morgage loan will it give me in a home about $250 000, and how do i keep up to it?

Answer 1

720 is a great score and you can qualify for the lowest rates. There are 3 factors which determine the interest rate you qualify for. 1. Your middle FICO score, 2. whether or not you will use your income to qualify or simply state it and 3. and most important, the loan to value also referred to as LTV. This is the percentage of the value of the home you are financing. All 3 of these factor will determine your rate. Right now, with your score and using your actual income to qualify on a loan of 80% LTV or less, the rates are at about 6.12% on a 30 year fixed today. Hope this helps.

Answer 2

5

Answer 3

my credit score was higher, but it will be the same interest rate between you and I (I believe the cut is 720.) basically, i have to pay the prime interest rate with the lowest additional interest from the bank (1.6%.) Roughly i have to pay around 6.8% interest.

the total loan is based on many variables, the most important of which is your monthly income. the higher it is, the more you can borrow. my wife and I make around 50k/year, so we can borrow @280k max. her alone (less than half) would be @100k.

Regarding payments, you generally have 2 main options: a 15 year loan or a 30 year loan. the 30 year loan will cut your payments in half, but if you total it up, you end up paying _A LOT_ more. so, imho, the best thing to do is look for a house at around 1/2 of your total credit and get a 15 year loan. Basically, if we get a 200k house with a 30 year loan, we will end up paying around 300k but only pay around 900/month. However, if we get the same house with a 15 year loan, we only end up paying around 250k, but the monthly payment will be @1300.

Answer 4

Borrowers with high FICO scores -- the top tier ranges between 760 and 850 -- can expect lenders to offer them lower interest rates and more loan choices. Scores of 620 or lower usually place a borrower in the "subprime" category, and they can expect to be quoted significantly higher interest rates and may be offered fewer varieties of loans. A FICO score of about 500-520 is generally the minimum that will qualify for a mortgage.

Answer 5

Looking through realty times today in Arizona, every realtor is now talking about the "buyer's market", "never a better time to buy" and "sellers need to lower their prices and be realistic"

Big change from just a couple of months ago, when all the commentary was "great market, housing is a great investment, prices never go down, blah blah blah"

Why the change? They were becoming the baghdad bobs of business, laughable in their deception and dishonesty, and they were looking like the town fool.

More importantly, sales totally dried up as the last sucker jumped in, and realtors were no longer gettin' paid.

New strategy: Fear and Opportunity. Get homeowners to fear the market, get desperate, and rapidly lower their prices. Get buyers to think it's a great time to buy at the new lower prices.

Only problem with that is that if you buy today, you're still buying near the top, and on the downward slope. What seems like a great deal today won't a year from now.

Here's a typical realtor report from Tucson:

Tucson Home Sellers Price Your Tucson Home to Sell or there is a good chance it will still be on the market come next year.

Last year, specifically last spring and summer we saw a run up in residential real estate sales that was frantic to say the least. Many people saw their neighbor's homes going for more than $100,000 over what they paid for their Tucson home just a few years before. As a result, a lot of people decided to put their home on the market and "cash in" on the run up in Tucson home values.

However, as is often the case, once the wave is gone it is a little late to get in the water and now we have more than double a normal inventory of residential real estate in the Tucson home market.

There are a lot of choices for buyers right now and many sellers wondering why their home isn't selling, or even getting people through them. In many cases the home is over priced for today's market.

There were a lot of would be real estate investors in the market last summer as well. Some bought two or more properties with the expectation they would fix them up and sell them again in a couple of months. This is called "flipping" and can be profitable in the right market place, however, Tucson isn't that kind of market right now for people that already bought at inflated prices and put money into those properties expecting to sell them for a profit.

Some of those homes are already on the market and as those "investors" get closer to not making the payments on these homes they will be forces to lower their asking price not wanting to risk foreclosure or damage to their credit rating.

Answer 6

It depends on what type of loan, but for the standard 30-year fix, the US loan average today for a score of 720 is 6.302%

But you might find it as low as 5.95% (see www.interest.com)

Answer 7

Not enough information. Besides credit score, other factors that influence your mortgage interest rate include your income; debt ratio; employment history; credit history; assets; type of loan (ARM, fixed, etc.); amortization (fully amortizing, interest-only, balloon, etc.); length of loan (10, 20, 15, 30 years, etc.); and loan-to-value (LTV).

Rick Lanicek
www.primelendingonline.com

Answer 8

the credit rating wont get you that much money your pay cheque will. with a 720 you should beable to get an ok rate on the loan though

Answer 9

It really depends on how much you put down and if you need to pay PMI. Check out the mortgage calculators on the web site link below. Let me know if you would like more info.