Ok just got approved at an 8% interest rate on a 114,000 dollar home, is that good or not, I'm not to good at math and I don't know wether that's good or not, its my first house and i don't know the average on interest so can someone please help me out and give me a little advice.
2006-12-27 06:12:41 · 9 answers · asked by wcenice 2 in Business & Finance ➔ Renting & Real Estate
That is a horrible interest rate. You should be able to get something in the 5.7% range. But that's going to depend on your credit rating. Bad credit/ higher risk to loaner. Shop around and get the best rate for your bucks. You're bound to find someone out there who will give you a better rate than 8%! (shivers)
At 8% on $114k over 30 years you will pay:
$836.49/ month or $519.82 of interest /month
At 5.7% on the same amount over the same term:
$661.66/ month or $344.99 of interest a month.
Don't know about you, but I sure could use $170 a month for other things!
Good luck.
2006-12-27 06:28:23 · answer #1 · answered by Tough Love 5 · 0⤊ 0⤋
Hello,
My name is John Mercado and I am a Real Estate Agent in San Diego, CA. First things first, depending on your credit score, this will ultimately decide whether or not you get the best rate the market has to currently offer. I will give you 2 example as to how you should be proceeding. First let's just say you have good credit, 710 and above. The closer you can get to 800 should be your goal always in this life, no joke. This will save you more money than you could ever imagine. Not to get too far off from your question, 8% seems too high for me. If you have good credit make sure you get a loan right now from any of the big banks. Bank of America, Washington Mutual, Citi etc. By all means do not shop at the door of a Mortgage Broker. They will take all they can squeeze out of you without any care in the world.So hopefully you have good credit. My suggestion to you is to take that 8% and go to another bank and tell them to get you a better rate. They all want your business, make them earn it!! If you have so so credit do the same with those type of lenders. Never sign the first loan offered to you, there is always a better deal out there. You just have to work for it.
2006-12-27 15:29:37 · answer #2 · answered by johnsellssandiego 1 · 1⤊ 0⤋
This is not a bad rate. The best available is somewhere in the high fives and low sixes. Rates wil depend on Stability and credit score. Stability meaning time on job that sort of thing. Make sure your not getting into an 5 year ARM, unless you are planning on selling it then because rates are still ok and they will only get higher. (ARM Adjustable Rate Mortgage) This means your rate will be adjusted according to prime in 5 years if prime goes up your rate goes up. That house payment that seeemed affordable is now out of reach.Hope this helps.
2006-12-27 14:31:35 · answer #3 · answered by bcauble1 2 · 0⤊ 0⤋
go to lendingtree.com to get 4 loan compaies to compete for your business. I've bought several homes and I;ve always gotten a better rate than going thorugh my agends "person" or through the builder of the home. It is free at lending tree. Get the quotes, no pbligation. It is definitely worth the effort. I just was quoted 5.75% a week or two ago (with great credit). The worse your credit, the higher it goes.
Good luck to you.
2006-12-27 23:45:40 · answer #4 · answered by chris 6 · 0⤊ 0⤋
8% is too high. Shop around. The interest rate is not that high. You do need representation in buying your home. Contact a realtor. I maybe able to help you. Where are you?
2006-12-27 19:41:59 · answer #5 · answered by loladrewblue 4 · 0⤊ 0⤋
Really depends on how much you pay down, your credit rating and your salary. I think right now 8% seems a little high. Have you checked with other banks? It might pay to do so.
2006-12-27 14:23:45 · answer #6 · answered by Kathleen M 4 · 2⤊ 0⤋
Thgat is high. Have your agent put you in touch with Rural Development ASAP. If you don't have an agent get one to represent you as Buyer Agent. They get paid by the seller agent and not you. I really think you need some guidance here.
DO NOT use the seller agent as they owe their loyalty to the seller and not you.
2006-12-27 14:59:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋
NO! I just got 5.625 a week ago! Shop around!
2006-12-28 22:12:55 · answer #8 · answered by ~slovensko~ 2 · 0⤊ 0⤋
Exactly what Kathleen M said in her answer.
2006-12-27 14:25:53 · answer #9 · answered by txrealestateagent 3 · 0⤊ 0⤋