Any thoughts on the kind of interest rate my wife and I might qualify for?
1. FICO scores of 721 and 752.
2. 51K annual income
3. Young and fresh out of grad school (26)
4. 600 a month in standard payments (300 car, 300 student loans
5. 3800 a month income.
6. No savings (I realize there is where we will be hurt)
7. Looking for 30 year fix-rate
2007-02-07 06:56:31 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You have a good credit score, Your annual income if net will allow $13,000 for home expense. That is $1,085 per month, for mortgage including escrow. $250 for escrow allows you, $835 per month for Interest and Principal.
Check the news paper and see what interest rate will allow a $835 payment for 30 years, this will tell you how much you can borrow.
2007-02-07 07:13:52 · answer #1 · answered by whatevit 5 · 0⤊ 1⤋
It is really hard to guess what type of loan you are looking for- purchase is what I am assuming, and how much you want to borrow. Also your down payment will affect your interest rate as well. If you have a down payment of at least 10%, you will get around 6.0%- 5.875% is par today and probably going down as the 10 year bond is trading in our favor currently.
You could qualify for a CHAMP or My Community loan product that allow up to 100% financing and zero or reduced PMI depending on your profile.
The grad school thing is not an issue as long as you are employed in the line of work you studied.
You could easily qualify for a free stated/ stated program with your scores as long as your credit profile is deep enough. Meaning that you have several, 4+, credit accounts and have had them longer than 3 years.
You will need to be prepared to bring in some cash to close however. There are always closing costs, insurance premiums, escrow accounts, etc that have to be paid and cannot be financed in a purchase. You might get some seller concessions to help with that, but you will need some money to put towards it.
About the 30 year fixed rate, as long as you plan on keeping the home for 30 years it is the best deal. If you are like most Americans and will relocate in 5-7 years you might be better served by a 5-7 year ARM. In reality there is no point in paying for a rate that is going to be fixed 30 years from now if you plan on getting out of the home in 5 years.
I am licensed in 45 states and could most assuredly help you if needed with any loan.
2007-02-07 15:35:26 · answer #2 · answered by flamingojohn 4 · 1⤊ 0⤋
Believe it or not, though you gave some good information, the information is still incomplete. We don't know your loan side, so there's no way to know what your eventual debt-to-income ratio would be. We don't know the status of the liabilities you listed (for example, a car payment with less that 10 months left can often be taken out of the picture completely). We also don't know the type of property, property tax info, homeowners insurance info, and a host of other things.
Still, for the short answer, all things we don't know AT THEIR BEST, you're looking for something around the 6.75% range, unless you don't mind breaking the two loans into two. Then the first (80%) would probably be around 6-6.25% while the second (the other 20%) would probably manage around 7.5-8%.
It also depends on how much you decide to buy down the rate. You can buy it down significantly for 0.5 to 2% of the loan amount.
Rates change every day, though, especially when you qualify for prime rates like you might. Rates have been headed down right now, but they might head back up soon, so no one answer is written in stone.
2007-02-07 15:30:28 · answer #3 · answered by Jason E Perkins 2 · 0⤊ 0⤋
The actual rate of the mortgage is based mostly on what the prime rate is (the rate the bank borrows at) and the program you choose. Current rates are around 6%. Most of what you listed will determine what amount you qualify for. If you are a first-time homebuyer you should check out programs specifically designed for your situation. Find a mortgage broker that offers HUD and FHA programs. Your city may also have incentives for buying a home. Any good broker will keep you away from PMI, you can roll that amount in to an 80/20 loan.
2007-02-07 15:14:26 · answer #4 · answered by MNman 1 · 0⤊ 0⤋
We have the same criteria as you do except without the grad school (why that matters????) and credit score part.... no college and credit score is in the low 600's. We are going with VA at 100% financing and we are getting out rate at 6.75%. I would say you should be looking at the low 6% range. They only go to about 5.75% (approx.) currently.
2007-02-07 15:01:08 · answer #5 · answered by Me 6 · 0⤊ 0⤋
My husband & I just refi'd for a 30 year fixed rate of 6%. We have about the same for credit score, twice as much income and are around 30 years old.
2007-02-07 14:59:34 · answer #6 · answered by Jo 6 · 0⤊ 0⤋
All the above are about right depending on how much you shop around. And good for you in choosing a 30 year fixed rate.
2007-02-07 15:04:28 · answer #7 · answered by hebb 6 · 0⤊ 0⤋
If you're looking for 100% financing, be ready to pay PMI, and lots of it. However, given your stats, it would look like you could get in the low 6's on the interest rate on a conforming program, as long as everything you say is true.
2007-02-07 15:01:22 · answer #8 · answered by togashiyokuni2001 6 · 1⤊ 0⤋
If you go to the right lender you should be able to get at least 6% rate with no down payment.
2007-02-07 15:04:33 · answer #9 · answered by Anonymous · 0⤊ 1⤋
6-1/2% is the going rate these days! thats reasonable..
2007-02-07 15:01:15 · answer #10 · answered by Dalton 1 · 0⤊ 0⤋