Fha interest at 5.25

[VALoanMaster]

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@girlonmission wrote:
Hi guys,

Is the fha interest rate based on your credit score? I have an loan at 270 after down payment and closing cost. But I am quoted 5.25% interest. When the lender pulled my middle earlier in the month I was 607. I was waiting for statements to close and post. He told me it didn't matter as long I was above 580 I was good. My bought my new report a week later my new middle was 620. A couple more accounts have closed since then. Anyway I think 5.25 is kinda high. What do you think? Should I shop around? Is the interest rate for fha based on federal rates? If so so how do I get that? Thanks

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Hi Girlonmission,

You need to run, not walk, from this lender. 5.25% is a least 1% too high plus they're charging you Loan Origination, Processing & Underwriting fees!

[VALoanMaster]

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@JediNeo wrote:

If you look at box A (% of loan amount), there is no dollar amount for points, so you are getting some credit for your rate.  Have you asked your LO what the next rate down looks like? Would you see be getting a credit, or would be paying (points) to have that lower rate?

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Hi JediNeo,

Sorry but you're mistaken. Box A clearly lists an Origination Fee of $995 plus Processing & Underwriting Fees. What this means is the lender decided to break down their fees instead of charging 1% or more for an origination fee. When you look at it this way, the total amount the lender is charging is a little less than 1% of the loan amount so it "looks" like the OP is getting a good deal but it's not when you look at the rate. At 5.25%, there should be zero lender fees & a large credit towards the OP's closing costs.

[girlonmission]

See that’s why I love you guys. I am running faster than a cheetah.

I don’t know why he puts 1300 for insurance when it’s 810. He has a copy of the quote. I gave it to him the day before.

It’s not a new construction. It’s was built in 1991. The last year taxes was 1305.

I did not contact the title company. I don’t know who the LO is using, but I am going to find out.

My real estate agent sent me to a LO he trusts, he already pull my files he said he can go to 4.8 but he will get try to get me at 4.2 or 4.3. he also helping me getting a $2000 tax credit.

I live in Naples, FL.

[JediNeo]

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@VALoanMaster wrote:

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@JediNeo wrote:

If you look at box A (% of loan amount), there is no dollar amount for points, so you are getting some credit for your rate.  Have you asked your LO what the next rate down looks like? Would you see be getting a credit, or would be paying (points) to have that lower rate?

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Hi JediNeo,

Sorry but you're mistaken. Box A clearly lists an Origination Fee of $995 plus Processing & Underwriting Fees. What this means is the lender decided to break down their fees instead of charging 1% or more for an origination fee. When you look at it this way, the total amount the lender is charging is a little less than 1% of the loan amount so it "looks" like the OP is getting a good deal but it's not when you look at the rate. At 5.25%, there should be zero lender fees & a large credit towards the OP's closing costs.

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My apologies, thank you for the correction

[VALoanMaster]

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@girlonmission wrote:

See that’s why I love you guys. I am running faster than a cheetah.

I don’t know why he puts 1300 for insurance when it’s 810. He has a copy of the quote. I gave it to him the day before.

It’s not a new construction. It’s was built in 1991. The last year taxes was 1305.

I did not contact the title company. I don’t know who the LO is using, but I am going to find out.

My real estate agent sent me to a LO he trusts, he already pull my files he said he can go to 4.8 but he will get try to get me at 4.2 or 4.3. he also helping me getting a $2000 tax credit.

I live in Naples, FL.

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Hi Girlonmission,

Here's the truth. A lender can tell you upfront what they can do rate wise right out of the gate. It's nonsense for the lender to say they'll try to get you down to 4.2 or 4.3%.

Here's what I'm talking about. Right now, the interest rate pricing for your score, loan amount & location is 4.875% with no "points" That just means instead of paying a percentage of the loan amount to buy the rate down you're taking the "par" rate. The pricing right now if you did buy your rate down by 1 point is 4.375%.

If your lender isn't breaking this down for you upfront, you can't really trust them. In addition, if they aren't giving you the option to do this, you can't trust them.

[VALoanMaster]

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@JediNeo wrote:

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@VALoanMaster wrote:

---

@JediNeo wrote:

If you look at box A (% of loan amount), there is no dollar amount for points, so you are getting some credit for your rate.  Have you asked your LO what the next rate down looks like? Would you see be getting a credit, or would be paying (points) to have that lower rate?

---

Hi JediNeo,

Sorry but you're mistaken. Box A clearly lists an Origination Fee of $995 plus Processing & Underwriting Fees. What this means is the lender decided to break down their fees instead of charging 1% or more for an origination fee. When you look at it this way, the total amount the lender is charging is a little less than 1% of the loan amount so it "looks" like the OP is getting a good deal but it's not when you look at the rate. At 5.25%, there should be zero lender fees & a large credit towards the OP's closing costs.

---

My apologies, thank you for the correction

Wow, now that I've reread my response, it definitely come "out" the wrong way. I apologize.

[girlonmission]

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@VALoanMaster wrote:

---

@girlonmission wrote:

See that’s why I love you guys. I am running faster than a cheetah.

I don’t know why he puts 1300 for insurance when it’s 810. He has a copy of the quote. I gave it to him the day before.

It’s not a new construction. It’s was built in 1991. The last year taxes was 1305.

I did not contact the title company. I don’t know who the LO is using, but I am going to find out.

My real estate agent sent me to a LO he trusts, he already pull my files he said he can go to 4.8 but he will get try to get me at 4.2 or 4.3. he also helping me getting a $2000 tax credit.

I live in Naples, FL.

---

Hi Girlonmission,

Here's the truth. A lender can tell you upfront what they can do rate wise right out of the gate. It's nonsense for the lender to say they'll try to get you down to 4.2 or 4.3%.

Here's what I'm talking about. Right now, the interest rate pricing for your score, loan amount & location is 4.875% with no "points" That just means instead of paying a percentage of the loan amount to buy the rate down you're taking the "par" rate. The pricing right now if you did buy your rate down by 1 point is 4.375%.

If your lender isn't breaking this down for you upfront, you can't really trust them. In addition, if they aren't giving you the option to do this, you can't trust them.

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I am learning so much about about points and interest. it's crazy.  I just talked to the new lender, he gots me at 4.25%. so I am guessing that is good for my area, right? It's obviously way better than the last guy.

the new guy is waiting on his compliance department to send over the loan disclosure, and I soon i have that, i will be sharing them with you. He said it takes about 2 days.

[JediNeo]

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@VALoanMaster wrote:

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@JediNeo wrote:

---

@VALoanMaster wrote:

---

@JediNeo wrote:

If you look at box A (% of loan amount), there is no dollar amount for points, so you are getting some credit for your rate.  Have you asked your LO what the next rate down looks like? Would you see be getting a credit, or would be paying (points) to have that lower rate?

---

Hi JediNeo,

Sorry but you're mistaken. Box A clearly lists an Origination Fee of $995 plus Processing & Underwriting Fees. What this means is the lender decided to break down their fees instead of charging 1% or more for an origination fee. When you look at it this way, the total amount the lender is charging is a little less than 1% of the loan amount so it "looks" like the OP is getting a good deal but it's not when you look at the rate. At 5.25%, there should be zero lender fees & a large credit towards the OP's closing costs.

---

My apologies, thank you for the correction

Wow, now that I've reread my response, it definitely come "out" the wrong way. I apologize.

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No offense taken. I am glad you pointed it out so I now going foward. I just saw "points" and that equaled to paying down the rate in my head.

[StartingOver10]

Personally, I am glad you are going to a new lender. 5.25% for a home that is  a resale with no lender contribution is high.

I personally think the title fees were above market too - especially since you are relatively close to me, I'm in Palm Beach county, the other side of Fl. 

The lender does not choose the title company.  Take a look at your purchase and sale contract. Either the seller chooses (if they pay for it) or the buyer chooses - and then the buyer pays.  Your contract will indicate who chooses and who pays. Speak to your Realtor.

[girlonmission]

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@StartingOver10 wrote:

Personally, I am glad you are going to a new lender. 5.25% for a home that is  a resale with no lender contribution is high.

I personally think the title fees were above market too - especially since you are relatively close to me, I'm in Palm Beach county, the other side of Fl. 

The lender does not choose the title company.  Take a look at your purchase and sale contract. Either the seller chooses (if they pay for it) or the buyer chooses - and then the buyer pays.  Your contract will indicate who chooses and who pays. Speak to your Realtor.

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Hi Neighbor,

I was in boca last week. My little cousin is looking into FAU. I have lots of of family in ft lauderdale and miami. In fact i just moved a year ago from Davie.

I am going to have my realtor look it.   

my old LO came back with the following:   Based on current market conditions, lowest available FHA rate is 4.50% with a 622 mid qualifying credit score. This rate/payment is $123 less per month.