They say I need to call my bank and lock in my rate? What is the average, so if they say a number above that I have some sort of leverage.
Thanks.
2007-02-12 05:10:39 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The fact that you are a 1st time homebuyer is irrelavant in the rate.
Factors that determine your rate are your debt to income ratio, loan to value ratio, the Fed Funds Rate (currently 5.25% and a bank margin added to it) and your credit score.
The better your ratios and credit score, the lower your rate. I second the suggestion you look at Bankrate.com, but understand these rates assume your ratios and credit score are really good.
2007-02-12 05:19:49 · answer #1 · answered by Matt K 4 · 1⤊ 0⤋
There are alot of factors that will determine what your rate is.. but being a first time home buyer typically wont matter...
If your credit score is around average ( 675) your down payment is 10%, your debt/income ratio is not too high based on what you are boworring, you should be able to be somewhere between 6-6.5%.
A credit score over 700 with good income you might lock you in a rate below 6..
Lower credit scores, excessive debt and other negatives may bring that number up over 7% and possibly even as high as 10%
2007-02-12 05:31:43 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Your rate is going to be dependant upon your credit rating as well as your loan to value. Meaning if you are putting anything down or doing 100% financing. You can still get the best rates available being a first time homebuyer as long as those things are in line. Meaning good credit and money down. If you don't have anything to put down or very minimal then it will effect the rate, but the less you put down the higher the rate. Worse the credit the worse the rate etc...
2007-02-12 05:25:57 · answer #3 · answered by konitchiwa bitches 2 · 0⤊ 0⤋
anyone that answers your question with a rate is doing you a dis-service. There isn't A rate available. There are a hundred scenarios your bank could be quoting you based on your qualifications and the program you're looking at. Get their good faith estimate in writing and use this to compare apples to apples with someone else, ONLY after you've provided this someone else with your application and credit report.
2007-02-12 06:41:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I would refer to bankrate.com to shop for good rates. Your first interest rate depends on your credit score and other outside influences (like what year you got your loan). Some people will have over 10% and some people will have below 6%. Just shop interest rates.
2007-02-12 05:14:23 · answer #5 · answered by Drew P 4 · 0⤊ 1⤋