What is a bad interest rate for a home?

Question

If you qualify, but you have bad credit, what's the worst rate possible?

Answer 1

i always need to apologize for my answers to new home buyers because they are long for a reason: i want you to be informed, therefore, less frightened in this process. it is not such a difficult or scarry thing to do, but you need thorough information, so:

i doubt it would be any higher than one percent above average. in today's market, without you paying any points (one point is equal to one percent of the mortgage balance after your down payment), rather high interest is 6.75%. so figure that you'd pay about 8% and higher closing costs. be sure to call mortgage BROKERS, not lenders working only for one bank, because they can get you any type of loan. they can even arrange for you to borrow money from a "portfolio lender," one that does not have to sell its mortgage packages out to the secondary market. usually the regular lenders do, so they must follow all kinds of rules that investors, that buy the portfolios up, want, in order to secure their investment and to make money. that money, the money investors pay to buy up mortgages from lenders, in turn funds the lenders so that they can make new mortgages.

really, once you decide on which lender you will use, sit down personally with the loan officer. ask what proof of income and proof of debt they will need. i say this because you want to walk out of your meeting with a "truth in lending statement," which will outline all fees that you will have to pay at closing. you need that information.

then, get yourself a buyer broker/agent! i cannot stress this too much. do not buy via the seller's agent! the seller's agent owes fiduciary responsibility (agency, much like a lawyer will not tell the other side anything about you, or about your case, or about how he will defend you) to the seller, not to you. you do not have to pay a buyer's agent unless you are seeking out real estate that is not on the market. your agent will get paid when the deal closes, so be loyal to who you choose. choose one that has been in the business for at least two years. do not necessarily choose the one that does a trillion in sales every year, because she will not care much about you, only about the money. ensure that your buyer's agent can explain, to your satisfaction, what "agency" means and what she would do if she listed a house that you decided to buy. then you will learn how your own agent protects your interests, which is what you need and want, don't you?

ask your Realtor (get someone that is a member of the National Association of Realtors that follows the Code of Ethics) to explain to you what costs that you will need to pay outside of what is shown on the truth in lending statement. if your agent is really caring about your wants and needs, go back to her when you sell.

go into this informed. happy house to you!

Answer 2

If you qualified for the wrost possible loan you would probably have a rate around 13% to 14%

Answer 3

Between 9 and 11 %

Answer 4

I'd say anything that is a fixed rate over 10%.
If you can get a rate that's 7% or under that's really good.
Remember, you can always refinance your loan.