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      09-10-2008, 01:53 PM   #1
daixloxbmw
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interest rates

i am about to purchase my first home and i am looking at securing a loan.

what is a good interest rate to be shooting for? so far, i have been seeing high 5 to mid 6s.

can anyone chime in on this?

i live in boston, ma in case that matters.

thanks!
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      09-10-2008, 01:57 PM   #2
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you should be able to get a 5.5 30year fixed P&I
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      09-10-2008, 02:16 PM   #3
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Quote:
Originally Posted by daixloxbmw View Post
i am about to purchase my first home and i am looking at securing a loan.

what is a good interest rate to be shooting for? so far, i have been seeing high 5 to mid 6s.

can anyone chime in on this?

i live in boston, ma in case that matters.

thanks!

Thats a very general question as there are many variables to consider before one can quote you a interest rate.

Things such as Credit Score, Purchase Price, and Down Payment have a significant effect on the rate.

That said, in a vague scenario, the going rate on a conforming 30 year fixed mortgage is roughly 5.625/5.75% right now.

I am a Mortgage Loan Officer at JPMorgan in NYC, feel free to PM me with any questions.

Good luck!
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      09-10-2008, 03:05 PM   #4
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Yeah, I would PM him if I were you!
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      09-10-2008, 03:10 PM   #5
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Go for 15 years fix rate if you can and put down 20% to avoid mortgage insurance and do not escrow.

Disclaimer, I am not an expert!
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      09-10-2008, 03:13 PM   #6
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Oh, make sure you loan states that you will not be penalized if you pay off early.
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      09-10-2008, 03:28 PM   #7
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I hope that you are financially sound from the beginning with low to no debt, no major purchases until after you close on the home, good credit for you and your spouse, don't close your credit cards or pay them off. Not always the best to do. These can affect your interest rate that you may qualify on.
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      09-10-2008, 03:35 PM   #8
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sorry for not providing more specific details.

credit score: ~780-790 average from the 3 companies.
purchase price: $373k
loan amount: $333k
down payment amount: $40k

so far the best i was able to find was 5.875%.

i could bring it down to $5.75% if i pay 0.5% ($1665), is that worth it?

that would reduce the monthly payments by ~$25.
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      09-10-2008, 03:35 PM   #9
daixloxbmw
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oh... my only debt is the 335i.
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      09-10-2008, 04:12 PM   #10
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Quote:
Originally Posted by daixloxbmw View Post
sorry for not providing more specific details.

credit score: ~780-790 average from the 3 companies.
purchase price: $373k
loan amount: $333k
down payment amount: $40k

so far the best i was able to find was 5.875%.

i could bring it down to $5.75% if i pay 0.5% ($1665), is that worth it?

that would reduce the monthly payments by ~$25.


Well based on the figures you provided you will have Private Mortgage Insurance because your loan to value is 88.4 LTV, also the quote for today is 5.625 on a 30 year fixed not sure why your getting quoted 5.875...
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      09-10-2008, 04:27 PM   #11
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how much do you have in the bank? are they quoting rates on an fha loan?
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      09-10-2008, 04:33 PM   #12
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Quote:
Originally Posted by shpuntik View Post
Thats a very general question as there are many variables to consider before one can quote you a interest rate.

Things such as Credit Score, Purchase Price, and Down Payment have a significant effect on the rate.

That said, in a vague scenario, the going rate on a conforming 30 year fixed mortgage is roughly 5.625/5.75% right now.

I am a Mortgage Loan Officer at JPMorgan in NYC, feel free to PM me with any questions.

Good luck!

Heyyy, how about that recent large pref stock offering... I bought some for the div yield.

What's the word on the street?
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      09-10-2008, 04:43 PM   #13
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Quote:
Originally Posted by daixloxbmw View Post
sorry for not providing more specific details.

credit score: ~780-790 average from the 3 companies.
purchase price: $373k
loan amount: $333k
down payment amount: $40k

so far the best i was able to find was 5.875%.

i could bring it down to $5.75% if i pay 0.5% ($1665), is that worth it?

that would reduce the monthly payments by ~$25.
do you have a contract? New rates come out tomorrow morning... is the property in Mass? Is it a condo or sfr?
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      09-10-2008, 05:10 PM   #14
daixloxbmw
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braintree, ma

single family

where are you seeing 5.625%?
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      09-10-2008, 05:12 PM   #15
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Car as the only debt is good as well as the down payment. You wouldn't happen to be a VETERAN and qualify for the VA loan would you?
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      09-10-2008, 05:21 PM   #16
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Here is what I dug up really quick. These rates are for the amount you stated with 20% down and 30 year fixed.There are better rates out there. Do your shopping around. Paying on points is not great depends on how many years it takes to make it up. You could stick the money elsewhere. You have to weigh your options and see what will work for you in the long run. These rates are from Boston BTW.
http://www.bankrate.com/brm/rate/mtg...f&refi=0&pct=0
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      09-10-2008, 06:23 PM   #17
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Quote:
Originally Posted by daixloxbmw View Post
sorry for not providing more specific details.

credit score: ~780-790 average from the 3 companies.
purchase price: $373k
loan amount: $333k
down payment amount: $40k

so far the best i was able to find was 5.875%.

i could bring it down to $5.75% if i pay 0.5% ($1665), is that worth it?

that would reduce the monthly payments by ~$25.
My rate, as of today is 5.625% with 0 points on a Single Family Home in Mass, on a 60 day lock.

I would not pay points if I was you, take a look at it from a mathematical perspective:

5.625% @ 0 points = $1,916/month (Principle & Interest)
5.50% @ .50 points = $1,890/month (Principle & Interest)

Monthly Savings = $26
Points = $1,665
Time to recoup the costs = 64 Months/ 5 Years 4 months.

Absolutely not worth it. Put that money in a interest bearing account and make it work for you. Discipline is key.
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      09-10-2008, 06:26 PM   #18
mpimping
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I am licensed in Mass and made a call to a big player over there to confirm the best rate but if you apply at one bank you are not committed until the closing. If you have a contract I can take your app and mail you a package free of charge.
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      09-10-2008, 06:27 PM   #19
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Quote:
Originally Posted by shpuntik View Post
My rate, as of today is 5.625% with 0 points on a Single Family Home in Mass, on a 60 day lock.

I would not pay points if I was you, take a look at it from a mathematical perspective:

5.625% @ 0 points = $1,916/month (Principle & Interest)
5.50% @ .50 points = $1,890/month (Principle & Interest)

Monthly Savings = $26
Points = $1,665
Time to recoup the costs = 64 Months/ 5 Years 4 months.

Absolutely not worth it. Put that money in a interest bearing account and make it work for you. Discipline is key.
how much in junk fees?
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      09-10-2008, 06:36 PM   #20
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if you go to the chase site it is 5.625% with 1 point on a 30 day lock...

Loan size: $333,000; loan-to-value: 89.27%; down payment amount: $40,000; lock period: 30 days; state: MA; property type: single family; property use: primary residence; credit history: excellent; will document income: yes; escrow: not waived; real estate taxes (monthly): $233; hazard insurance (monthly): $69; homeowners dues (monthly): $0;
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      09-10-2008, 06:49 PM   #21
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Quote:
Originally Posted by mpimping View Post
how much in junk fees?
I am not a broker and therefore am not sure what "junk" fees are.

But the standard fees are $500 for underwriting and processing and a $395 application AND appraisal fee.

Quote:
Originally Posted by mpimping View Post
if you go to the chase site it is 5.625% with 1.25 points on a 30 day lock...

http://mortgage.chase.com/pages/purc..._p_results.jsp
Those rates are posted for the public and are extremely different than internal rates. You, out of all people, should know that.

Why don't you tell everyone what commitment and origination fees you charge for this loan. Also please disclose what you are getting on the back (industry talk for yield spread).
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      09-10-2008, 07:00 PM   #22
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Wells Fargo 5.625 % 100.780 100.486
US Bank 5.625 % 100.539 100.414
Amtrust 5.625 % 100.494 100.344
CitiMortgage 5.625 % 100.493 100.236
Suntrust Corr 5.625 % 100.399 100.274
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