Math_Rocks wrote:Kind of a different question so I'll start another thread.I know all my FICOs and based on this site, the scores would qualify us for rates like 6.1% on a 30 year fixed. I started applying for mortgage quotes today and it seems like the rates are more in the 6.5 - 7.125% range. Is this because we need 100% financing? Or am I not getting quoted their best rates?
For each that you lack above, lenders are taking more risk and hence a higher rate.
Also, when you are looking at the chart, was the 6.1% under the APR collumn. If so, this is not the note rate for the mortgage. The note rate would actually be lower than the APR. The APR includes certain costs to obtain the financing and adds that to the note rate to give you the cost of credit for the first year.
Regarding the whether or not you are being quoted the best rate: Rate is going to be tied to the cost of the loan. Brokers will, and should, get paid money on the deal. How much is between you and the broker. The broker can get paid from the borrower, the investor/bank, or a combination of the 2. The more you pay the broker (Origination points), the lower your rate. The more the Bank pays the broker (Yield Spread Premium), the higher your rate will generally be. You need to determine what makes the most sense for you at this point.