What is a good interest rate? Is 6.7% good or bad? How much a month would it be if I got a 100,000 loan? Is it harder to find a Fixed rate? Any help would be great, thanks
2006-11-21 08:42:08 · 7 answers · asked by Thor 1 in Business & Finance ➔ Renting & Real Estate
In my area, Southwestern Pennsylvania, 6.7% sounds high. Around here rates under 5% are still available for some loans.
If you borrow $100,000 for thirty years at 6.7%, the monthly principal and interest payments will be $648.50. You will also have to pay real estate taxes and spend money to keep up the property.
Good luck.
2006-11-21 09:10:16 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋
Get a fixed rate loan. Don't go interest only. DO NOT take out ANY kind of loan that requires you to re-finance in a couple of years "when the interest rates are lower". Interest rates will be lower in about 18 years from now.
Interest rates go in cycles and we've been at the bottom of the cycle for a few years already. Expect interest to be HIGHER in two years than it is today.
Set yourself up in a payment that you can now and in the future afford. You'll be glad you did.
2006-11-21 23:13:59 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋
Interest rates are borrower specific. Lenders look at the borrower's credit history (how well he/she pays the bills and how long accounts have been opended, etc.), his/her ability to repay the loan (income/assets on hand), collateral (the property being financed and its value as deemed by an appraisal), etc.
So, 6.7% might be an awesome rate for a particular borrower and for someone to say it's high without knowing all the facts is misrepresenting the lending business. I am a real estate and mortgage broker in JAX, FL.
2006-11-21 17:22:52 · answer #3 · answered by 94Nole 1 · 0⤊ 0⤋
It all depends on various factors.
Today, if you were borrowing more than $100,000 and have good credit and stable income, I would be quoting you 6.125% for a 30 year fixed.
However, if you have some issues, 6.7% could be a very good rate.
If you are already working with a mortgage broker, you should be asking them these questions. If you're not, I can help you with a mortgage anywhere in Florida. Thanks and good luck!
2006-11-21 21:03:46 · answer #4 · answered by jenay672001 3 · 0⤊ 0⤋
Getting an interest only loan is good. People usually get this type of loan to get a lower payment, but be sure to request to not have a pre-payment penatly. A pre-payment penalty simply means paying part of a mortgage debt before the maturity date usually it's 6 months of interest. This will help you refinance in a couple of years when the interest rates are better.
2006-11-21 17:04:22 · answer #5 · answered by alananavarro22 2 · 0⤊ 1⤋
If you'll be there awhile, please don't go with interest only. You'll be sorry down the road. If you're looking around Ft Myers, Naples, I can give you the name of a respectable mortgage broker. Send me an email. 6.7 sounds a little high, but depends on so many things. Congrats on your first home.
2006-11-21 18:24:05 · answer #6 · answered by Papa John 6 · 0⤊ 0⤋
Per month payment includes Principal, Interest, Taxes and insurance. I'd have to know taxes and ins. figures to make a good estimate. As for the principal and interest see a banker.
2006-11-21 17:05:02 · answer #7 · answered by Anonymous · 0⤊ 0⤋