4.25% 30 Yr

[Anonymous]

Hey everyone i was wondering and im very new to this mortgage stuff  lol.  I just recieved a quote for a home im looking to purchase.  I also got my credit score and my fico is at 790.  Now i was quoted 4.25% for a standard 30 yr fixed rate loan.  Does that seem high for now days??  

thanks in advance

Matt

[StartingOver10]

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@Anonymous wrote:

Hey everyone i was wondering and im very new to this mortgage stuff  lol.  I just recieved a quote for a home im looking to purchase.  I also got my credit score and my fico is at 790.  Now i was quoted 4.25% for a standard 30 yr fixed rate loan.  Does that seem high for now days??  

thanks in advance

Matt

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Welcome to MyFICO! 

When you are comparing loans you have to look at both the interest rate and the closing costs in order to see which quote is the best combination of rate and costs.  Is the lender paying some of your closing costs? Is this a conventional loan?

[Anonymous]

No the bank from the quote is not paying any closing costs.  The total he has is $4771 total closing costs including  the escrow for 3 months for both property taxes  and home owners insurance up front which makes no sense to me as im required to pre pay for a year of home owners insurance.  Sorry for my ignorance on this but its confusing me  lol i emailed him to get an explanation, and yes this is a 30yr fixed rate conventional loan

[sdchrgrboy]

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@Anonymous wrote:

Hey everyone i was wondering and im very new to this mortgage stuff  lol.  I just recieved a quote for a home im looking to purchase.  I also got my credit score and my fico is at 790.  Now i was quoted 4.25% for a standard 30 yr fixed rate loan.  Does that seem high for now days??  

thanks in advance

Matt

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That seems a littel high to me.  I just went into underwriting with 3.75% on a 30 year. Just like with a car, you need to shop around for mortgage rates.  If they are within 30 days are considered a single pull.  Prepaying your hazard insurance is normal as well as having funds in escrow fro property insurance etc.

[StartingOver10]

^^^Exactly right.

Go to a mortgage banker - not a bank. You will get better rates/terms and generally have a better experience. Mortgage bankers only do mortgages - the originate, underwrite and fund their own loans and they are usually much more competitive than the banks are now. 

[Anonymous]

Yup thats who im going with now.  Cherry creek Mortgage. It just seems high to me with what im seeing.  Should i ask to see if i can get lower or look around??   Is it usually the same process for every place??  W2s  last 2 years of taxes and pay check stubs for last 30 days??

[StartingOver10]

Look around. Make sure to compare rate and costs - because someone can offer low rates but high costs and vise versa. Sometimes it's worth it to pay a little extra in costs to get the better rate, other times it isn't. You have to compare the numbers. Check reputation too.