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Help! Is this a good rate? (Conventional)

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Help! Is this a good rate? (Conventional)

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!

 

 

 

3.5 IHG | 5K Marriott | 5K Arrival+ | 10K Synchrony Amazon | 10K Best Buy | 10K Citi DC | 10K Freedom
15K IHG Premier | 20K BCP | 28K Discover | 30K Quicksilver | 41K Venture | 45K BOA CR | Amex Gold
FICO® SCORE 8 (11/14/2019): Equifax 741 | Transunion 767 | Experian 755 | (Goal 780+ across)
Message 1 of 8
7 REPLIES 7
Frequent Contributor

Re: Help! Is this a good rate? (Conventional)

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??

Current Score 10-2-19: TU: 806 EX: 788 EQ: 791
Goal Score: 800 Across the Board
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Message 2 of 8
Contributor

Re: Help! Is this a good rate? (Conventional)

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.

 

 

 

3.5 IHG | 5K Marriott | 5K Arrival+ | 10K Synchrony Amazon | 10K Best Buy | 10K Citi DC | 10K Freedom
15K IHG Premier | 20K BCP | 28K Discover | 30K Quicksilver | 41K Venture | 45K BOA CR | Amex Gold
FICO® SCORE 8 (11/14/2019): Equifax 741 | Transunion 767 | Experian 755 | (Goal 780+ across)
Message 3 of 8
Member

Re: Help! Is this a good rate? (Conventional)

First of all, congratulations on purchasing a new home. Smiley Happy

 

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

Message 4 of 8
Contributor

Re: Help! Is this a good rate? (Conventional)

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

 

3.5 IHG | 5K Marriott | 5K Arrival+ | 10K Synchrony Amazon | 10K Best Buy | 10K Citi DC | 10K Freedom
15K IHG Premier | 20K BCP | 28K Discover | 30K Quicksilver | 41K Venture | 45K BOA CR | Amex Gold
FICO® SCORE 8 (11/14/2019): Equifax 741 | Transunion 767 | Experian 755 | (Goal 780+ across)
Message 5 of 8
Member

Re: Help! Is this a good rate? (Conventional)

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

Message 6 of 8
Community Leader
Super Contributor

Re: Help! Is this a good rate? (Conventional)


@sergiulucian88 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?

GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

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Message 7 of 8
Highlighted
Contributor

Re: Help! Is this a good rate? (Conventional)

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
3.5 IHG | 5K Marriott | 5K Arrival+ | 10K Synchrony Amazon | 10K Best Buy | 10K Citi DC | 10K Freedom
15K IHG Premier | 20K BCP | 28K Discover | 30K Quicksilver | 41K Venture | 45K BOA CR | Amex Gold
FICO® SCORE 8 (11/14/2019): Equifax 741 | Transunion 767 | Experian 755 | (Goal 780+ across)
Message 8 of 8
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