Right now we have a fixed 30 year 8.25% rate...
I ended up filling out some stuff online because of how low rates are right now, and we are starting to get calls back from lenders... However, i'm not really sure exactly what kind of rate I should ask for, what is a good rate for a 30 year fixed mortgage?
What kind of other things should I ask to get before switching lenders? What extras should I get, i'm not looking for consolidation or extra "quick" money out of this...
I just want to know what to demand, when they start offering so I can say something like "well, we wont go with you unless we get this..."
2007-01-12 03:05:54 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Play hard ball with them. Keep a running list of the lender, term years and rate. I originally had a 30 year fixed at 8%. Went online, looked at the offers, and played one against the others. Took the lowest online offer and started researching local banks to beat the best online offer. Ended up refinancing at a local bank for 5.625% for 25 years, with a bi-weekly payment (believe it will be paid off in 20 years).
Tips: Some banks will throw you extra bones and incentives for: 1) having a account with them (start one), 2) having your payment pulled automatically, 3) having direct depoits, and 4) making bi-weekly payments (sending the same amount - just quicker).
2007-01-12 03:30:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Hey Eric,
There are many variables here that can change what you are eligible for as far as a mortgage goes.
30 year fixed loans are currently around high 5's to mid-6's, depending on a myriad of different qualification guidelines.
The main questions you should ask are:
How long is the rate fixed for?
How much will it cost me to get that rate?
Are there any pre-payment penalties?
I think that by shopping around you will get an idea of what is available to you.
I do know that 8.25% is much higher than where current conventional mortgage rates are at, and I would recommend refinancing.
If you would like a second opinion, please email me back. I work for a lender, not a broker, therefore we offer several different options with no middle-man fees or junk fees. Take care, hope this helps.
2007-01-12 03:35:47 · answer #2 · answered by Justin 3 · 0⤊ 0⤋
The rate they will offer you should be the lowest rate you qualify for if is a PAR rate. Ask your lender if the rate is PAR. This means they are not making any money in the back (also known as Yieldspread). After this, see the Loan origination fee on the Good Faith Estimate Disclosure and you shouldn't pay over 2 points of the loan amount. It is also important to find out if your refinancing will result in a tangible benefit. You can lower your rate and payment, but if you will be saving let's say only $50.00 a month and is costing you $8,000.00 to refinance, forget it.
And remember, don't ask for a rate, ask what rate you qualify for. And make sure is PAR.
Not only your score and payment history is going to affect your qualification, other factors such as how much equity you have in the property, your debt to income ratios, type of property, loan amount, etc will determine what kind of loan and rate you can get. email me with any questions. yldspread@yahoo.com
2007-01-12 03:48:53 · answer #3 · answered by Kubricksmind 2 · 0⤊ 0⤋
This answer is for somebody that has an excellent credit. The current rates right now for a 30 year fixed is between 5.875-6.375 depending on what you want to do. If you want to cash-out a little money for a vacation it would be on the higher end of the range that I have given you. Another factor is that if your gross income would be able to cover your monthly payments and expenses. That is called the documentation type. The more documents you show the lower the rate would be. another factor would be your loan-to-value. In refinacing the lenders want their loan to value to be lower than seventy percent. The higher the loan-to-value the higher the rate on the range that I ahve given you.
I am a Branch Manager for a broker company in NJ and NY so if your in any of this area I will be able to help you. It is best to go with a broker because they deal with a lot of banks. And they work for you not the bank. We always chose the best for our costumer. I promise you will leave happy and satisfied. So contact me as soon as you can.
e-mail: johntanion@hotmail.com
cell: 201-390-7591
work: 845-623-3181
2007-01-12 03:22:46 · answer #4 · answered by John T 2 · 0⤊ 0⤋
Well, Eric far as rates are concerned it is determined by your credit score and if you have been late on any of your mortgage payments if need be I have a no cost no obligation Mortgage company that will be willing to answer any questions that you may have licensed in over 50 States with plenty of programs tailored to your specific needs a fixed is always good but are your happy with a 8.25% rate what if you could get a lower payment . Ms Leatherwood
2007-01-12 05:37:30 · answer #5 · answered by mailinglist330 1 · 0⤊ 0⤋
Things to think about:
1/ Cost of refinance ...may be up to 1 point.
2/ 8.25% is curerntly at Prime rate...that is a good rate for a 30 year fixed....but you can always do better...make sure that the new arte is 30 year fixed though...don't do the ARM
2007-01-12 03:14:53 · answer #6 · answered by boston857 5 · 0⤊ 1⤋