The lender has shown us documents with a 7% interest rate. From all the information I've seen, that seems pretty high. I know that the interest rates are all contingent on your credit, but why does that seem really high? Our credit isn't terrible. The house we want totals to be around $220,000; but could it be that we aren't getting the correct rate?
2007-05-08
06:23:08
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10 answers
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asked by
Cream4life
2
in
Business & Finance
➔ Renting & Real Estate
What is your FICO score? 650
How much debt do you currently have? $500 a month payments
What is your total yearly income? $85,000
What percentage of the home price are you putting down if anything? None
2007-05-08
06:35:44 ·
update #1
What is your FICO score? How much debt do you currently have? What is your total yearly income? What percentage of the home price are you putting down if anything?
I suspect that people who can answer your question may need more information such as the above. Just click the edit button and add details, so that someone may help you.
Congrats on your new home purchase.
AFTER SEEING YOUR STATS IN THE DETAILS, I THINK YOU GOT A PRETTY GOOD DEAL. HOWEVER, I SUGGEST THAT YOU SHOP AROUND TO A FEW MORE LENDERS TO CONVINCE YOURSELF THAT YOU GOT A GOOD DEAL. FYI: I HAVE A SINGLE FRIEND MAKING SIX FIGURES, HAS NO DEBT, WITH A FICO SCORE OVER 800 AND HE WAS ONLY OFFERED 6.0 AND 6.1 APR FROM TWO DIFFERENT LENDERS FOR A 180K HOME THAT HE WAS PUTTING 40K DOWN FOR AND PAYING ALL OF HIS CLOSING COSTS OUT OF POCKET. I WOULD SAY THAT YOUR DEAL IS BETTER THAN HIS WHEN COMPARING YOUR RESPECTIVE FINANCIALS.
Good luck and shop around with a few more lenders because I hope you get a lower rate. Shopping around a little more can only help you because you already have the 7% to fall back on if for some reason all others are higher rate offers. Go forward trying to get the lower rate, even 2/10ths of a point is more than worth the effort.
2007-05-08 06:32:36
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answer #1
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answered by Nancy 4
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The interest rate that a person is charged are based on a number of factors. Credit, downpayment, terms and front and backend ratios being some of the others.
Shop around. Nothing says you have to finance with this a lender or a broker.
Brokers can shop many lenders to find the best deal. Additionally, the best deal is not always the loan with the lowest interest rate. There are the terms, but there are lender fees such as loan origination fees you need to also look at.
2007-05-08 06:35:58
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answer #2
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answered by edwardogden2000 3
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That is way too high.First time home buyers qualify for sunny may which is a 4 or 5 percent interest rate. Anyway there are lots of plans for first time buyers. Right now it is a buyers market. Also it is not very hard to get a SS card. Drive to the federal building and get him one. It's easy. And you should be able to buy a house in your own name anyways. But you must go there drag him there if you have to and get him a SS card. Even homeless people have one. Is he an illegal alien? Doesn't matter if you're legally married he is automatically a citizen and he can still get a Social Security Card. There is no excuse for not having one.
2016-05-18 02:37:31
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answer #3
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answered by Anonymous
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You say your credit score is 650--- are both your scores 650? Because they take the average of the two, or sometimes just the lowest score.
Other then that the rate does seem a little high. Your debt ratio is fine, you can afford the house no prob. Shop around-- you should be able to get close to 6 from someone.
A
Actually now that i look at it, i notice you are putting nothing down. That could be and probably is the issue that is hurting you.
2007-05-08 06:39:55
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answer #4
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answered by Anonymous
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That actually sounds reasonable for a fixed rate loan. Current rates are about 5.9% on average. Its not just a matter of good credit. How much did you put down? The more risk you take by placing more money down the lower the rate to a point.
2007-05-08 06:32:23
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answer #5
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answered by Sane 6
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Just like you would for other things, shop around. This is your biggest purchase, it's worth taking your time finding the right mortgage.
We've had very good luck with mortgage brokers. It's a good way to shop around without going all over town.
Beware of online mortgage companies. Only go with reputable companies if you go look online.
2007-05-08 06:37:17
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answer #6
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answered by Anonymous
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If you have not signed then these may be just pre-disclosure RESPA that is sent out with your application. Get The loan officer to tell you the rate and the APR. The APR is the rate on the beneficial amount of the note excluding the cost
2007-05-08 06:30:22
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answer #7
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answered by golferwhoworks 7
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I am a mortgage broker in Dallas and I can tell you, that is quite high. You should be able to get a 100% loan at 6.25-6.5% with your credit score. If you like, email me at rob@bluestarlending.net. I would be happy to help you out.
2007-05-08 07:39:27
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answer #8
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answered by Robbie G 2
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Check your credit score, if it is below 680 then 7% is not bad
2007-05-08 06:31:19
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answer #9
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answered by rizard2006 2
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That's high. Go to www.lendingtree.com to see if you can get a better deal.
2007-05-08 06:30:12
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answer #10
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answered by katzchen75 4
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