Is my rate correct or ask for drop?

Anonymous · ‎08-21-2008

Hi Everyone, I'm going to purchase my first home and have a 785 mid FICO score. CitiMortgage is giving me a rate of 6.5% on a 200k conventional loan. Is there any possibility to get a rate near 6.0%? Should I ask for a rate reduction? Thanks, JJ

Message Edited by jjnk5 on 08-21-2008 05:39 PM

Anonymous · ‎08-21-2008

Sure, nothing wrong with negotiating. But I doubt that you can get down to 6%. How much do you pay down?

Anonymous · ‎08-21-2008

Thanks Physicist, My downpayment is 10% (20k). I'd like to get 6.25% since seeing that the average rate is 6.184% for a FICO between 760-850.

Anonymous · ‎08-21-2008

Actually, there are some more factors that affect the rate (not only the CS). I guess you saw the 6.184% on the myFICO web page, don't you? It does not necessarily reflect the reality. Nevertheless, 6.25-6.375% sounds quite reasonable. I recommend to get a competitive GFE from another lender. But don't allow them to pull your score! That hurts. But having an second offer in writing is a good start for negotiations. Good luck!

Message Edited by Physicist on 08-21-2008 07:15 PM

BrianB_The_Loan_Professor · ‎08-21-2008

If you get a second request att least let the person have a fair opportunity to earn your business. It is not a good thing to make someone do work for you just to gain negotiatting power. That said today your rate for that loan amount is a little high today. I wouldnt expect 6 without paying points though.

Good Luck

Brian

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly

DallasLoanGuy · ‎08-22-2008

jjnk5 wrote:
Thanks Physicist, My downpayment is 10% (20k). I'd like to get 6.25% since seeing that the average rate is 6.184% for a FICO between 760-850.

myfico disclaimer:

For scores above 620, these APRs assume a mortgage with 1.0 points and 80% Loan-to-Value Ratio. For scores below 620, these APRs assume a mortgage with 0 points and 60 to 80% Loan-to-Value Ratio. Assumes mortgage is for a single family, owner-occupied property.

my disclaimer: 6.25% is doable. would cost an extra point or so, depending on loan amount and how much time is spent on the loan(borrowers)

Retired Lender

Anonymous · ‎08-22-2008

If properly coded, mortgage inquiries within a set time frame are counted as 1 inquiry by the FICO scoring algorithm. They will all appear, just not all count as individual inquiries.

Physicist wrote:
Actually, there are some more factors that affect the rate (not only the CS). I guess you saw the 6.184% on the myFICO web page, don't you? It does not necessarily reflect the reality. Nevertheless, 6.25-6.375% sounds quite reasonable. I recommend to get a competitive GFE from another lender. But don't allow them to pull your score! That hurts. But having an second offer in writing is a good start for negotiations. Good luck!

Message Edited by Physicist on 08-21-2008 07:15 PM

DallasLoanGuy · ‎08-22-2008

sidewinder wrote:
If properly coded, mortgage inquiries within a set time frame are counted as 1 inquiry by the FICO scoring algorithm. They will all appear, just not all count as individual inquiries.

op has a 785.... even if they werent lumped together.... they could pull 10 times and still be cool. LOL

Retired Lender