I've been offered a mortgage for a 30 year fixed rate of 7.625 on a conforming level2 fannie mae loan with 20% down. Fico score is at 616.Looking at 120k home.
(Midwestern homes are still affordable.)
Does this sound reasonable ?
Any input is appreciated.
2007-09-19 08:30:45 · 9 answers · asked by LostKoss 1 in Business & Finance ➔ Renting & Real Estate
I am aware that the prime rate does not directly affect mortgages and that a .25% rate decrease has been priced into the market before they actually lowered it by .50%. There might be a little bit more room for rates to go down, but I doubt it will get much lower.
I'm in Milwaukee WI for anyone that thinks location matters.
I am basically asking how the rate compares historically.
Thanks for all the input
2007-09-19 08:56:41 · update #1
you should get a rate of 7% or lower!
2007-09-19 09:18:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Go FHA, and today's rates are 6% for a 30 year fixed.
DO NOT go with a level 2 when you can save almost 2 percent. On a Hundred thousand dollar mortgage, the
Principle and interest payment (P&I) would be $707.79, that same amount with 6% would be $599.55. That being a savings of $108.24 per month or $39,000. savings over the life of the mortgage.
FHA only equires 3% down or $3600. plus closing costs on your $120,000. mortgage.
2007-09-19 09:00:59 · answer #2 · answered by ? 7 · 0⤊ 0⤋
I would check with several banks and mortgage companies and see what they have to offer you. You may not need to put down such a big downpayment, and you can use that money for things you will need in your house. the mortgage market has really got tight lately with all of the people facing forclosure and many mortgage companies have gone out of business. Best to get a fixed rate mortgage so you know exactly what you will be paying each month. The only thing that will change is the amount of taxes you have to pay overtime.
2007-09-19 08:37:07 · answer #3 · answered by Anonymous · 0⤊ 1⤋
This sounds a little high, but not out of this world. Check the internet for the best rates. You can just go to Yahoo and type in best mortgage rates. Look for 3rd party reporting, not advertisements.
I got a 15 year mortgage for $300,000 at 4.75% apr just 3 years ago. 800 credit score.
2007-09-19 08:34:42 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Considering it's a level 2 approval, that is a good rate.
PS - long term mortgage rates are NOT tied to prime, so don't expect a lower rate just because prime went down.
2007-09-19 08:36:35 · answer #5 · answered by Mortgagemom 3 · 1⤊ 0⤋
The rate varies based on what part of the country you live in. For instance, it will be lower in NJ, NY area because home prices are higher. The same applies for west coast.
You need someone from your area to help you out.
2007-09-19 08:34:48 · answer #6 · answered by Anonymous · 0⤊ 1⤋
it's about middle. since interest rates were lowered yesterday, you may want to go back to the mortgage company and see if you can get a lower rate.
2007-09-19 08:34:57 · answer #7 · answered by Anonymous · 0⤊ 1⤋
was tHis before or after the fed cut rates by 1/2 ?
2007-09-19 08:35:36 · answer #8 · answered by richard t 7 · 0⤊ 1⤋
7.625% is good if you are getting 100% loan. You should get around 6.875% if you put now 20% with no points.
2007-09-19 09:00:14 · answer #9 · answered by s_uperdave 3 · 1⤊ 1⤋