downey savings is advertising at 5.5, is there anything better?
2006-11-25 08:16:37 · 3 answers · asked by jojo 3 in Business & Finance ➔ Other - Business & Finance
Just because a company is advertising that they offer a 5.5, chances are your not going to qualify for it. That is a just a marketing trick to get you interested. They best way to tell what kind of rate you will qualify for is based on three simple questions.
1. On a scale of 1 to 10 what is your credit score like?
2. Have you had any 30 day lates or more on your mortgage in the past two years.
3. What is the loan to value on the home? Meaning how much do you owe against how much the home is valued at.
Only people with 700+ credit scores with low LTV will qualify for that rate in today's market.
Good Luck!
2006-11-28 05:29:39 · answer #1 · answered by Jeff D 1 · 0⤊ 0⤋
5.5 is a pretty good rate... you may even ask about paying discount points to lower the rate even more. If you do opt to pay your interest rate down be sure it makes sense to do so. Rule of thumb is to recover your money within 5 years.
2006-11-25 16:48:13 · answer #2 · answered by vinnyc 2 · 0⤊ 0⤋
You also need to consider the closing costs and other costs involved, which can alter the economics drastically. A site I like for refinancing is at http://www.refinance-and-loans.com/ where they have a lot of topics and some links to on-line lenders you could try looking at to compare with your bank.
2006-11-28 02:28:23 · answer #3 · answered by LostAgain? 2 · 0⤊ 0⤋