My middle credit score is 616. What is a fair interest rate on a home loan in tx?

Answer 1

Todays rates as of 09/07/06

PRODUCT RATE PTS APR CHANGE
30 Year Fixed 6.14% 0.21 6.23% 0.010 Trend
15 Year Fixed 5.81% 0.24 5.98% 0 Trend
1/1 Arm 5.23% 0.48 6.93% 0 Trend
3/1 Arm 5.60% 0.31 6.91% 0 Trend
5/1 Arm 5.76% 0.30 6.73% 0 Trend

This will very if you are borrowing at 100 %
A conforming borrower will have MI on top of any loan amount over 80 % of the appraised value/ purchase price. That is why you will see many 80/20 loans (2 payments at a blended rate). But you can get a 1 loan at 7.25 percent (or higher, depends on the lender) with out MI insurance. Talk with a broker, one who will pull your credit one time, and lenders will go off his/her report. See the following:

Recent changes minimize the negative effects that rate shopping can have on a mortgage applicant. If there is a consumer originated inquiry within the past 365 days from mortgage or auto related industries, these inquiries are ignored for scoring purposes for the first 30 calendar days; then, multiple inquiries within the next 14 days are counted as one. Each inquiry will still appear on the credit report.

There are many many loan products available to a client. You must decide which is the best one for you. - ok. There are fixed loans, also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

ALSO -
When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out


Good luck to you.

Answer 2

You won't see a rate of 6% or lower unless it's a very short term adjustable rate mortgage such as a 1 month arm or a 1yr arm. Or perhaps an option-arm. If you settle into a 5yr io arm, or something similar, you will likely see a rate in the high 7s depending on documentation type, transaction type, property and occupancy type, and much more. It's too difficult to give you an approximate rate because of the amount of factors that go into a mortgage. But I can say that with a 616 score, you'll be dealing with sub-prime lenders who have higher rates than bigger banks. Consider raising your credit score before applying for that loan!

http://www.thetruthaboutmortgage.com

Answer 3

You'll likely end up with an 80/20 loan-- the 80% will be at the best going rate, and the 20%, probably around 9-11%.

Answer 4

For Credit and finance solutions I always recommend this site where you can find all the solutions. http://personalcreditsolutions.info/index.html?src=5YAWds13tGY73fDG1

RE :My middle credit score is 616. What is a fair interest rate on a home loan in tx?
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Answer 5

Between 6% and 8% depending on whether it's stated, non-stated, if there are bank statements and wage verification, such nonsense as all that.