Wells Fargo FHA rates accurate?

[Anonymous]

I was thinking of applying to new american funding or rocket mortgage? American funding has there rate for FHA listed at 3.25%. Thats with 2 discount points though. Anyone deal with them? 

https://www.newamericanfunding.com/mortgage-rates/  

[Mortgage-Specialist]

On My rate sheet on a 270k purchase price on FHA loan with 700 credit score shows that it scould cost a lot less then 2 points. It costs just less than 1 point 0.943   That is a difference of $2,854  savings to borrower.  A 640 score for that same loan scenario only costs 1.443. So a 640 credit score can in fact obtain a 3.25% loan. I didnt think this would be possible again. 

3.2500%

99.0570

[Anonymous]

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@Mortgage-Specialist wrote:

On My rate sheet on a 270k purchase price on FHA loan with 700 credit score shows that it scould cost a lot less then 2 points. It costs just less than 1 point 0.943   That is a difference of $2,854  savings to borrower.  A 640 score for that same loan scenario only costs 1.443. So a 640 credit score can in fact obtain a 3.25% loan. I didnt think this would be possible again. 

3.2500%

99.0570

I wonder why my LO is so high on my percentage? I mean were off by alot. How do they figure out how much each lender tacks on to the rate? From the way I understand it the FHA sets a rate and then anything over that is tacked on by the lender for profit?

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[Mortgage-Specialist]

On a 270k loan amount, a 3.75% rate actually would give you 0.5232% of the loan amount toward closing. This means you should get a lender credit of $1,412. This basically means you'd get $1,412 toward title fees. 

Par rate would actually be 3.5% 

[Anonymous]

Wow, I may also apply with my credit union (UFCU). They have a 3% FHA advertised with 1 point on there website. 

[Anonymous]

A few more questions that someone may know off the top of there head so i dont have to start a new thread. 

*The 97% Fannie mae is 1st time buyers only? I keep seeing conflicting reports and Fannie Maes website says 1st time only as well. 

*To exclude an installment loan is it 5% of your total gross for that one loan? So my installment is $395 per month with 5 months left and my  gross is $9300 or so per month. 

Thanks

[CreditInspired]

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@Anonymous wrote:

A few more questions that someone may know off the top of there head so i dont have to start a new thread. 

*The 97% Fannie mae is 1st time buyers only? I keep seeing conflicting reports and Fannie Maes website says 1st time only as well. 

*To exclude an installment loan is it 5% of your total gross for that one loan? So my installment is $395 per month with 5 months left and my  gross is $9300 or so per month. 

Thanks

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I want to define 1st time home buyer because I thought it meant “never” owning a home before. Here is the fact:

A first-time homebuyer is an individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).

[Anonymous]

Ya, unforunatly I sold my last house about a year and a half ago.