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Contributor
cinoeye
Posts: 132
Registered: ‎05-02-2007

7.35%-Is this good deal?

We got couple of offers for our morgage loan.
 
My median score is 685 and my wife's 625.
 
For our score, no money from our pocket, 0% down......on $190 000 we look at 7.35 interest.
 
Is this a good deal?
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: 7.35%-Is this good deal?

That seems a little high... Is this fixed or ARM?
Contributor
cinoeye
Posts: 132
Registered: ‎05-02-2007

Re: 7.35%-Is this good deal?

Thank you for your answer.
 
It is 30 years fixed.
 
No down payment, no MI, closing cost included.
 
It's a builder, so they have own finincing.
 
Guess we should look for some other options.
Since it's a bulider, they pull your score now amd in four months when house is built.
 
I just pray to god they do not add that 14 year old collection before we close.
 
 
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: 7.35%-Is this good deal?

Its not an awful rate.. but I would think you could get prime or close to prime with your scores. Maybe the mortage experts will chime in.
 
From Bankrate:
 
6.33%
6.42%
Contributor
cinoeye
Posts: 132
Registered: ‎05-02-2007

Re: 7.35%-Is this good deal?

Don't know, maybe we should say no and they will find something better?
 
 
I know she does not have a great score and C history, I know we do not want to put any down payment....but still I belive we can do better than 7.3%.
 
 
Contributor
cinoeye
Posts: 132
Registered: ‎05-02-2007

Re: 7.35%-Is this good deal?

Even If I go to fico home page and put loan amount on 30 year fiexed, I get even bigger rate for our avarage median score(620-659)- 7.6%.
Valued Member
premierjg
Posts: 44
Registered: ‎03-13-2007

Re: 7.35%-Is this good deal?

I am a mortgage banker and want you to know that this is a good deal.  100% financing in this marketplace is especially hard to come by with scores less then 700 for both borrowers.  In addition, mortgage rates have really spiked the last 45 days, almost as much as a point.
 
Yes, there are lower rates out there then the one that you are quoted but they are generally for loans that are less then 80% of the appraised value, in your case you are using 100% of the appraised value for the loan.  Another thing to consider is that because you don't have to pay PMI, that is causing your rate to go up as well, as you are essentially financing the PMI.  This is a good thing because instead of spending the money on insuring your loan for the bank, you are applying it towards your principal balance.
 
Finally, the last thing to consider is that it is very tough to compete with builder's lenders because of the incentives that the builders are offereing.  In your case they are paying your closing costs. 
 
Like I said I am a mortgage banker and in escrow for my own house and using the builders lender because I can't compete with their loan after considering the $8000 incentive for closing costs.
 
Feel free to ask any more questions as I would love to help out, I have gotten so much great info from this forum it feels good to offer advice.  I also can fund loans in 50 states if by chance you need help.
 
John-
Contributor
cinoeye
Posts: 132
Registered: ‎05-02-2007

Re: 7.35%-Is this good deal?

Thank you Jonh (Smith :smileywink: ) !
Frequent Contributor
princessofpink
Posts: 328
Registered: ‎05-18-2007

Re: 7.35%-Is this good deal?

I just want to know where you can buy a brand new house for 190,000 these days.  Certainly not here in South Florida. :smileymad:


cinoeye wrote:
We got couple of offers for our morgage loan.
 
My median score is 685 and my wife's 625.
 
For our score, no money from our pocket, 0% down......on $190 000 we look at 7.35 interest.
 
Is this a good deal?



Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: 7.35%-Is this good deal?

I bought my 20 year old house for 175K 7.5 years ago it is now 500K so I would wonder myself where to find a decent house anywhere there is work for under 200K .

princessofpink wrote:
I just want to know where you can buy a brand new house for 190,000 these days.  Certainly not here in South Florida. :smileymad:


cinoeye wrote:
We got couple of offers for our morgage loan.
 
My median score is 685 and my wife's 625.
 
For our score, no money from our pocket, 0% down......on $190 000 we look at 7.35 interest.
 
Is this a good deal?







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