2007-07-20 18:22:29 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are several programs that would offer 100% financing at a 605 (Fannie Mae My Community, Fannie Mae Flex 100, Freddie Mac Home Possible) score - but none would offer a 6.5% rate without discount points and/or origination fees being paid. I highly doubt that its a negative amortization loan as I'm not aware of any 100% neg am loans since SouthStar went out of business. Further 6.5% is not usually the start rate on such loans, they are usually ridiculously low like 1-3% or so. Furthermore there is not much difference between ARMs and fixed rate loans these days, so I don't know why it would be an ARM either.
Odds are you've got someone giving you a rate that is at or below par and charging you other types of fees to make up for that as far as their income goes. Do your homework, comparison shop, and remember that the rate is not everything. The costs are just as important as well. Check the APR and that will give you guidance as well.
2007-07-21 06:07:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's only too good to be true when you sell your house and you owe the bank because your equity is less than your purchase. It is a bad idea to get loan if your lender only lets you pay interest, without paying off principal. It is never a bad idea to get a 100 percent loan on anything especially a house. READ THE FINE PRINT?
2007-07-21 01:55:05 · answer #2 · answered by Jeff 3 · 0⤊ 0⤋
Sounds like an option ARM with negative equity. Probably only locks the rate for the first month or two and then the sky's the limit after that.
If something sounds too good to be true, it almost always is.
2007-07-21 05:17:30 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Thats pretty good for a 605 score. Might want to ask for further details.
2007-07-21 01:26:38 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yep -- probably a very bad ARM, or a teaser rate for the first few months.
2007-07-21 01:35:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
read all of the fine print, there is a catch somewhere. could be a bunch of fees they are adding on and putting on the back end of your financing.
Good Luck
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2007-07-21 01:35:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
before you get happy check the contract and all the fees.
2007-07-21 01:56:33 · answer #7 · answered by endgame1915 3 · 0⤊ 0⤋