3.75%, conventional, 797 credit score - Bad?

[Anonymous]

600K in the Bayarea doesn't follow general conforming rules, you will be looking at a Super Conforming loan based on your county it sounds like. Its less strict than a Jumbo but more strict than a standard conventional loan. 3.75% with no MI is a great rate as I am assuming they are doing Lender Paid MI.

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1monkey wrote:

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shnsajax wrote:

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1monkey wrote:

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StartingOver10 wrote:

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1monkey wrote:

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joshall wrote:

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Skeemen240sx wrote:
@joshall I think your lender should be able to do better. I'm also in the process of closing a mortgage. 30 yr fixed 3.625% 400k home with 5% Downpayment. 724 Fico middle score.

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Yea, that is what I have thought too.  Perhaps I should shop around.  I have only worked with one lender so far.  How many have you shopped for? 

What is the mortgage point your lender offers you?

Will your lender contribute to your closing cost too?

Thanks

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I'm new to mortgage loans.

But lenders are willing to deal with buyers at 5% down?

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Yes for conventional loans. There is even a 3% DP conventional Fannie Mae mortgage available.

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Are there certain income restrictions?

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Usually not, but from a Mortgage Insurance Standpoint you are much better off putting down 5%. Usually geared towards 1st time home buyers as well.

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I'm looking at a 600k house in the bay area

20% down is quite tough to get to.

but I have enough now for 10% down.  I have looked at 10% with no PMI and at 3.75%, but never knew 5% DP was accepted by banks.

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[Anonymous]

@joshall this was at 0 points and my purchase agreement states that seller pay 8k closing cost. My closing most is only 7k but I wont see the difference. I had 3 lenders...one mortgage company, BofA and NASA credit union. NASA took forever to assign the loan so I went with the mortgage company who was aggressively trying to get my loan.

[frugalQ]

OP....

3.75% int rate with 10% down and no PMI?  That's really good.

[joshall]

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@frugalQ wrote:

OP....

3.75% int rate with 10% down and no PMI?  That's really good.

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3.75% with PMI, unfortunately.

4.2% with no PMI.

I honestly thought I could go lower!?

[frugalQ]

we are paying 4.2% 30-year fixed with 687 mid-score...10% down conventional.  we have a second mortage less than 50k at 5.5% 15-year fixed....we don't pay pmi.

[spikedup]

With a 780 midscore, you'll get the best rate for PMI.

[reneasworld]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@StartingOver10 wrote:

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@Anonymous wrote:

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@joshall wrote:

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@Anonymous wrote:
@joshall I think your lender should be able to do better. I'm also in the process of closing a mortgage. 30 yr fixed 3.625% 400k home with 5% Downpayment. 724 Fico middle score.

---

Yea, that is what I have thought too.  Perhaps I should shop around.  I have only worked with one lender so far.  How many have you shopped for? 

What is the mortgage point your lender offers you?

Will your lender contribute to your closing cost too?

Thanks

---

I'm new to mortgage loans.

But lenders are willing to deal with buyers at 5% down?

---

Yes for conventional loans. There is even a 3% DP conventional Fannie Mae mortgage available.

---

Are there certain income restrictions?

---

Usually not, but from a Mortgage Insurance Standpoint you are much better off putting down 5%. Usually geared towards 1st time home buyers as well.

---

I'm looking at a 600k house in the bay area

20% down is quite tough to get to.

but I have enough now for 10% down.  I have looked at 10% with no PMI and at 3.75%, but never knew 5% DP was accepted by banks.

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I thought you needed 20% for no pmi?

[frugalQ]

there are options to paying PMI....you can do the monthly single premium payment (the most common), upfront PMI (you pay the full amount upfront at closing), or lender paid PMI (the lender pays it for you, but they recoup it by charging you a higher interest rate).  there's also a split premium (you pay part upfront and part as a monthly payment), but I never hear of anyone doing this.

if your LTV is more than 80%, you will pay PMI in some form or fashion.

[Anonymous]

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@frugalQ wrote:

there are options to paying PMI....you can do the monthly single premium payment (the most common), upfront PMI (you pay the full amount upfront at closing), or lender paid PMI (the lender pays it for you, but they recoup it by charging you a higher interest rate).  there's also a split premium (you pay part upfront and part as a monthly payment), but I never hear of anyone doing this.

if your LTV is more than 80%, you will pay PMI in some form or fashion.

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This is what i've gathered as well.

[reneasworld]

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@frugalQ wrote:

there are options to paying PMI....you can do the monthly single premium payment (the most common), upfront PMI (you pay the full amount upfront at closing), or lender paid PMI (the lender pays it for you, but they recoup it by charging you a higher interest rate).  there's also a split premium (you pay part upfront and part as a monthly payment), but I never hear of anyone doing this.

if your LTV is more than 80%, you will pay PMI in some form or fashion.

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So, if your purchase price is below value and then you put 10% down but because the value is higher your Ltv is 80 or less,  no PMI? Have you seen this? What happens when your Ltv starts off at 80 or more but drops does your rate go down also?