First time buyer.Approve for 5.8% interest rate.Is that a good deal?

Answer 1

That's a pretty good rate right now.

Answer 2

That is an awesome rate. Currently here in my neck of the woods a 30 yr fixed 100% one loan runs approximately 5.99- 6.125. This loan does have MI, but it's very low...around .0059. The APR...can be misleading so don't just look at the Truth in Lending/ APR but also look at the GFE. a 5.875 note rate w/ 8% APR would not be a good deal (really exaggerated) APR, while a good idea, is extremely flawed, so do not make this your only source in relying upon a good deal or not. Some brokers include all cost, some, very limited cost and others, only those cost as set forth by interpretational conditions for APR...if you ask 3 brokers, you may get three different answers. The GFE side by side should help. A good rule of thumb would be 1.25-3% in closing cost..sometimes this will be inclusive of pre-paids, sometimes not. Be very careful comparing GFE's with one broker that included Pre-paids in your estimate ( a good sign) vs the broker that only shows you closing cost ( a terrible sign) The lower the fees the better still. If your happy with the broker you have and your points and fees are consistent with the market than you have a good deal. Mortgage brokering is like a prize fight...any broker can beat a rate quote form the other guy, but after all is said and done...did you have great service and competitive programrate/fees.

If your loan is a 30 yr fixed or 5/1 ARM, I think thats consistent with the market. Broker fees should be around .75-1.25, maybe processing fee of 250-500, if they are not a true broker but rather net branch possibly 300-500 licensing charge (a junk fee really, you shouldn't have to pay for there net branch name fee) You should have an appraisal charge between 300-500.00 (depending on market), credit report around 20-50.00, U/W fee from Lender 500-1000 (1000, if subprime) tax servicw fee around 55-75 (again market location) Flood service fee. These should be your closing cost...anything extra is junk, unless you are buying down the rate which would be a discount fee.

Pre-paids: consist of hazards..on purchase 12 mo in advance Interest for X amount of days dependant on when loan closes, any mortgage insurance upfront. pre-paids are items required by the lender to be paid upfront.

Reserve requirements if any will be 3-5 months hazards (depending on loan closure) Property taxes collected 3-5 months and any other tax base your city/county collects

Title and escrow charges 200- 600 each item (market dependant), county fees (varies), attorney fees of any

Govt fees: City / State -Recording 25 -100 (varies) and so on. Make certain that your provider has disclosed many of these items. Please keep in mind that there are possibly more, but I have listed the most common in my area. Good luck! Hope this helps.

Answer 3

What type of loan is it? An ARM, a 30 yr fixed, 15 yr fixed?? If the broker/loan officer said it's a 30 yr fixed rate mortgage, then that rate sounds too good. For a 5.8% rate, the broker or lender must be charging you points and/or an origination fee. Get a copy of the GFE and read it line-by-line, and shop around.

Answer 4

Be careful.... if it is an adjustable rate mortgage that rate could be good for a very short period of time. As noted earlier, what sort of points are you being charged for that rate?

ALWAYS shop around for loans.... just like you would shop around for cars. I would love to have to opportunity to find you a loan that is

a) Affordable
b) Best for your situation
c) Easily terminated in case of a refinance or a sale

Please give me a call at your convenience. Our brokerage is approved with over 100 lenders so the rates we offer are always competitive!

Answer 5

That is an excellent rate. What is the APR? The average interest rates for forst time buyers here in Jacksonville, Nc for clients with credit is about 6.5%

Answer 6

That is a good rate. Is it a fixed rate or an arm?
Either way its pretty good