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09-10-2008, 01:53 PM | #1 |
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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! |
09-10-2008, 02:16 PM | #3 | |
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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, 03:28 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, 04:12 PM | #10 | |
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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, 04:33 PM | #12 | |
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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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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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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 |
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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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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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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:
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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