What should I expect my Mortgage rate to be. 1st time buyer.?

Question

Looking to purchase our first home.
We will be putting 5% down
Our credit score average is in the 770-780 Range.

I want to make sure im not being "had"
I saw rates are as low as 5.68 on a 30 yr from bankrate/com

Answer 1

it depends on on how much the house is and what your income is. that will determine what your rate will be.

Answer 2

I agree with those that say your rate will not be lower than 6.00%. Depending on a lot of factors like the loan size, it may be higher than that, especially with 95% financing. Many lenders also vary their rates based on which state you reside. Overall, I think that shopping rate is important, but it is not most important, especially for a first time home buyer. It is always possible to get a very low rate, like 4-5%, but this does not end up helping you at all, because you will end up paying for the rate in additional closing costs labeled 'buydowns.' This just means that you are basically paying the interest upfront.

To be sure that you are not had and that you end up with a good program, not just a low rate or payment, I would shop around and talk to both banks a a mortgage broker to get a feel of what you can expect.

Answer 3

Unless it is a special loan offered in-house by a specific lender, first time buyers get the same rares as everyone else. The rate on a conventional 30 year fixed rate loan today, at par (no rate buydown) has been right about at 6% for a couple of weeks now. FHA is the same.

Rate isn't the only thing you should be shopping. The cost of the financing is at least as important and the quality of the service you receive is most important of all. It doesn't matter if someone offers you 4% if it costs you too much to get or, if by the time you're done, you're ready for the asylum.

Brokers may be able to offer slightly lower rates but the costs will be higher because they are, after all, a third party. In addition, they submit their loans to wholesale lenders and are at the mercy of that lender's particular pipeline so may not have the control that enables them to make time commitments they know they can honor.

As a first time buyer you need to find someone who will educate you, present all of your options, and help you evaluate them so that you may make an informed decision.

I encourage you to search for and find an experienced mortgage banker who is more interested in what is in your best interests than in how much commmission they are going to make on your loan. They can teach you how to compare apples to apples so that you don't get "had" by some shark out there offering a low rate with hidden costs and hazards.

Good luck. Feel free to email me if I can answer any questions for you.

Answer 4

The people being "had" are the ones who believe that the bankrate rate offers are real.

Many are not. They've been sued about it. I quit advertising on there because half the competition was simply fiction.

You should, however, be able to get something right around 6.00%. 5.875% is possible, 5.75% unlikely. If you do an 80/15, which you'll likely do to avoid mortgage insurance, you'd probably be at 6-6.125%.

Just make one or two calls to other brokers/bankers on the day you get your rate lock offer from your broker. Ask for a rate quote for the product you are being offered. You'll probably find you're well in range.

Answer 5

I would first advise to get your credit checked. Every single one of my clients tells me their credit is high and this great number. When I actually check it, 85% of the time it comes out much lower than they say. Now, if all credit scores come in what you say they are, the needs to go through a broker decline a great deal. In fact, I would not recommend it. Assuming your scores do come in that high the only need to use a broker would be for one of two reasons:
1. They can shop hundreds of banks for you to get the best rate, which technically you can do yourself.
2. The biggest way they can help you is by picking the right kind of mortgage. The right mortgage is HUGE! There are a lot of different ways certain mortgages can save you tons of money. The biggest problem with this is that the majority of mortgage brokers are lazy and in it for themselves and not to help others. I would say 75% of the brokers that I talk to fall into this category. So be careful if you go this route. Always make sure to get a good faith estimate if you do.
If you have any questions feel free to contact me. I hate seeing people get taken advantage of.

Answer 6

You should be at the lowest rate with that credit score. DON'T GO TO A MORTGAGE BROKER GO TO A BANK TO AVOID BROKER FEES. Your credit score is high enough where you don't need a broker.

Answer 7

you will pay! 75K? Why is your credit so undesirable? pay off your costs. Pay all of your costs in finished and on time. this can strengthen your credit status. strengthen adequate savings for a minimum of 10% down - this will provide you a margin of protection. by ability of the time you try this stuff, the costs in the housing market in Cal. may have come down, so the homestead will fee you a lot less and the non-public loan will fee a lot a lot less! (And, maximum heavily, you received't lose your position to foreclosure in 5 years!). best desires.

Answer 8

also may want to check 1st time homebuyer grants and gifts. Can pay up to 2 or 3 grand from you, if you haven't already. Your realitor should know about those.

Answer 9

I got 6% w/ a fha loan from National City Bank.

5.68 is way below prime, so you'd be doing well to get that loan.

Answer 10

I was told by a realtor the other day that he got someone 5.5% on an FHA loan. With your score, you're in good shape.

Answer 11

you have strong credit. that sounds like a good rate. ask friends and family who they recommend that they trust. i wouldn't go through the paid advertisers on bankrates site.