30 yrs fixed at 5.625 in Jan 07, is that good enough?

Question

my friend told me she has just bought a new house in Jan 07 and the mortgage rate she got is 5.625 30 yr fixed for 410k loan, the price of the house is 530k. was that a good rate?? i thought it's quite high cos i thought i came across something like 4% unless i was mistaken for something else. just out of my curiousity, is that a good rate? or if you had also bought a house recently, i'll be curious to know what rate are you guys get for 30 yr fixed.

i don't think the APR matter becos i heard that APR can be easily manipulate if i remember correctly, but anyway, the home builder pay for her "cost of the loan" (including 1.5 points).

she has good credit score.

Answer 1

For a 30 year fixed, 5.625% is a very good rate.

When you see a rate advertised as 4%. that is just a teaser rate that does not exist. Essentially anyone who advertises a rate like that is engaging in "bait and switch" advertising." I guarantee that you will not get a 4% fixed rate on a thirty year loan at close of escrow.

You need to look for the "Annual Percentage Rate" or "APR" to tell you what the real rate is.

Answer 2

It really depends on her credit scores. that will decide her interest rate