Help! Is this a good rate? (Conventional)

[Anonymous]

Hello everyone,

We have a property (condo) in escrow, so far we've got the quote below from our loan officer. 

Loan Amount: $116,250.00

Down Payment: 25%

LTV: 75.000%

Loan Type: Conventional (Fixed)

Term: 240 months

Type: Primary Residence

DTI: ~29%

Interest Rate: 4.375%

APR: 4.643%

(no closing costs incentives from lender, no points)

The APR for the 360 months was quoted at 4.774%. I was expecting the difference between the 30 year and 20 year to be a bit more than 0.131‬, is that the norm? 

Does this look good by today's standards? Property is located in Florida. (scores in signature)

Thanks in advance!

[JGGM]

Without knowing DTI and other factors (i.e. primary home, vacation home, lender paid closing costs, etc.) it would probably be hard to tell. I can tell you I closed on 10/25/19 on a primary residence and my rate was 3.625% with no points and 10% down conventional. Scores were all north of 780. I also don't know if your property being a condo affects the rate??

[Anonymous]

Thanks for your reply, JGGM. This will be a primary residence, lender is not paying any closing costs. DTI would be ~29% only because they are factoring in the expenses of our current property, which will be converted into a rental (this one is paid off). We are scheduled to close on Dec 20th, appraisal has not been done yet by the lender. 

I will update my original post with the info you suggested.

[Elindocain]

First of all, congratulations on purchasing a new home. 

IMHO the rate looks high.  Two questions: When you say the Lender is not offering any closing costs, do you mean that they are not contributing or that you don't have closing costs? Also, which bank are you financing through?

Based on your credit scores, DTI, DP, property value AND the fact that it's 20 years, you should be able to secure a better deal. To compare, I'll put my details next to yours, my mid-score was 749; California and also a condo.

Loan Amount: $116,250.00 / $709k

Down Payment: 25% / 5% 

LTV: 75.000% / 95%

Loan Type: Conventional (Fixed) / High bal Conventional (Fixed)

Term: 240 months / 360 months

Type: Primary Residence / Primary Residence

DTI: ~29% / 49%

Interest Rate*: 4.375% / 4.125%

APR*: 4.643% / 4.353%

*Rates locked 10/25

[Anonymous]

Thanks for the reply Elindocain. To clarify, the lender is Fairway and there are no incentives being offered. Closing costs are ~5%.

[Elindocain]

Those costs are insanely high.  Have you shopped around?  You have an IDEAL profile and IMHO you can secure more favorable funding.  

[CreditInspired]

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@Anonymous wrote:

Hello everyone,

We have a property (condo) in escrow, so far we've got the quote below from our loan officer. 

Loan Amount: $116,250.00

Down Payment: 25%

LTV: 75.000%

Loan Type: Conventional (Fixed)

Term: 240 months

Type: Primary Residence

DTI: ~29%

Interest Rate: 4.375%

APR: 4.643%

(no closing costs incentives from lender, no points)

The APR for the 360 months was quoted at 4.774%. I was expecting the difference between the 30 year and 20 year to be a bit more than 0.131‬, is that the norm? 

Does this look good by today's standards? Property is located in Florida. (scores in signature)

Thanks in advance!

---

Rate seems high to me. But those are FICO 8 scores in your signature; what is your middle mortgage score?

[Anonymous]

Thanks everyone for your input. When we ran the first pull 3 weeks ago our mids were 740 and 780 (so). These are our most recent scores.

758 Fico Score 8, Experian data Nov 6, 2019

744 Fico Score 2, Experian data Nov 6, 2019

749 Fico Score 8, Equifax data Nov 6, 2019

772 Fico Score 8, Transuinion data Nov 6, 2019

787 Fico Score 8, Experian data Nov 6, 2019
796 Fico Score 2, Experian data Nov 6, 2019

788 Fico Score 8, Equifax data Oct 29, 2019

797 Fico Score 8, Transuinion data Oct 29, 2019