If you have no money down, and your credit score is good (over 700), is 7% good for an 80/20 loan (on the 80% part not the piggyback). I know someone who put 10% down and got 6.25%, but his credit isn't great.
Everytime I google "prime rates" or something like that it's in the high 5's, or low 6's. How do you know what the real rate is?
2007-05-05 13:07:11 · 3 answers · asked by arctanx 2 in Business & Finance ➔ Renting & Real Estate
If your score is over 700 and you can verify income, then you shouldn't be doing an 80/20. You didn't mention the rate on the 2nd? It's definitely higher than 7% (probably adjustable?) so, find out what your blended rate is between the 1st and 2nd loans @ http://www.hughchou.org/calc/blended.html.
Prime rate is the rate banks charge to lend money. A good conforming/conventional lender will be at or close to prime for a 30 year fixed. Yesterday's 30 year rate was around 5.75% (par - meaning no points paid by borrower and no money made by person offering rate). You should be able to qualify for 6-7% 30year fixed 1 loan for 100%. You may have to pay PMI (private mortgage insurance) up to about .90% of the loan amount.
2007-05-05 14:46:52 · answer #1 · answered by A C 2 · 0⤊ 0⤋
Your question is a little confusing, How can you have no money down and have an 80/20 loan?
The 7% may be OK. You didn't say if there were no points and what the actual APR is. Some companies have wierd ways of describing their rates. Some will offer a 6.25 with 1 point but the APR actually ends up being 7.15. There is another thing you didn't mention, PMI. Normally with an 80/20 you will be forced to pay PMI. It may not be interest, but it is part of the overall payment. You need to compare the RATE, the Points and especially the APR. After points and hidden stuff your actual rate (APR) might really be higher than the advertised rate.
2007-05-05 13:59:50 · answer #2 · answered by ttpawpaw 7 · 0⤊ 1⤋
No that is not a good rate for 700 scores if it is <417k and you are verifying income. I don't know what state you are in but the bankrate average 30 year may be higher or lower than yours since different states have different rates. If you aren't confident in what you are quoted than shop around. Call 3 or 4 different places and get some quotes. No need to have your credit pulled, just tell them you want a quote based off a 700 score, 1st time buyer etc...
2007-05-05 14:42:44 · answer #3 · answered by Theworldismaddening 2 · 0⤊ 0⤋