Please help: Is this is a good rate (seems very bad to me)?

[Anonymous]

FHA 30 year fixed. 

Credit score: 650. Income 140K 

134K house price 

3.5 down 

Origination cost: not waived so 1300

Closing costs 6,100 (Isn't this really high?) 

Lender credit is 1500 dollars (isn't this really low?) 

[Anonymous]

You don't list the rate. Generally closing costs are 3-6% of the homes price. Seems nice your getting a lender credit.

[Anonymous]

The rate is 4.3

[Anonymous]

4.3% is an alright rate for FHA. The lender may have had an overlay which made your credit score bump up the rate. Sub 4% is common for FHA in my area.

The closing costs seem perfectly normal. They are very location dependent because property and transfer taxes can make up a big chunk of that. 

As far as the lender credit, we can't tell how high/low it is without knowing what the rate would be without the credit. They are giving you money which means they are raising your interest rate to compensate. It's possible your rate would be around 4% without that credit. 

[kc0039]

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@Anonymous wrote:

FHA 30 year fixed. 

Credit score: 650. Income 140K 

134K house price 

3.5 down 

Origination cost: not waived so 1300

Closing costs 6,100 (Isn't this really high?) 

Lender credit is 1500 dollars (isn't this really low?) 

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Origination is average nationwide

Closing costs looks good as well. Title fees are the ones that jack that up

They gave you a lender credit because of the rate. If you didn't take the lender credit, your rate would be sub 4%

[Anonymous]

There is some legislation going around for not increasing rates due to lender "gifts" they have to be true gifts and not attached to rate increases. Anyways ask for the rate without the gift.

[Anonymous]

Rate without the gift was 3.87. 

I just wish they would waive origination because two places have went ahead and waived it. 

[Anonymous]

Well it seems as if the gift is covering the origination fee as a offset but raising the interest rate. The other 2 places who waived it are competitive?