Ok my grandmother is going to cosign for a mortgage for me and my wife. the cost would be 40000 for the home. What is a good interest rate to accept our credit is bad, but hers is around 675-700 what should we be looking for?
2007-11-12 08:51:31 · 5 answers · asked by britt.shell 2 in Business & Finance ➔ Renting & Real Estate
Her FICO is low too so you may get a high rate. 6% is good if you have good credit now but you may end up with 8-9%.
Make sure you can afford the payments and don't ruin granny's credit.
2007-11-12 08:58:03 · answer #1 · answered by shipwreck 7 · 0⤊ 3⤋
Many factors come into play when determining the interest rate you will get for the type of real estate you are purchasing and the amount of money your putting down. Basically the less risk associated with the real estate and credit history the better rate you will get. FHA loans insure the lender against default by the purchaser. If your buying a home FHA is the way to go. Contact us for more information.
2007-11-12 09:09:08 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If her credit is good then let her buy the house for you and later when you have paid for 24 months using your own checks (they must be checks made out to the company) then she can refinance the property into your name otherwise you are looking at a high rate of 10.50% or worse. Without knowing your score I am assuming it is below 580. If not then you should ask your broker to get you approved FHA and do it on your own and let grandma give you a gift. FHA rates are low.
2007-11-12 09:08:56 · answer #3 · answered by steve s 3 · 0⤊ 0⤋
anywhere between 5 and 7
2007-11-12 09:00:05 · answer #4 · answered by king ride dot 2 · 0⤊ 0⤋
$40,000? That should be a down payment. Try saving up for a real house that can appreciate in value, instead of one that will blow away in the next breezy spring day.
2007-11-12 09:06:43 · answer #5 · answered by Anonymous · 0⤊ 3⤋