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9/19/2017 7:27:10 PM
Posted: 9/25/2001 12:38:26 PM EDT
What is the best rate out there? I have been quoted 6 7/8% with 3% down. Is this a good rate? Is it worth it to buy the rate down? Scott
Link Posted: 9/25/2001 12:40:57 PM EDT
NO! a GOOD rate would be 3-4%
Link Posted: 9/25/2001 12:44:45 PM EDT
That's a decent rate, but then it depends on many things. Is the 3% for your down payment (ie. FHA)? Is it 3% in points? For decent and brief explanations of different types of loans PLUS some calculators go here: http://www.countrywide.com/RetailLoans/Purchase.asp You can plug in some various numbers in their calculators and figure out what your monthly would be (minus tax and insurance, of course), play with more/less down, points, prepayment, etc. Here's another great calculator that figures out the whole mess with graphs: http://www.jeacle.ie/mortgage/
Link Posted: 9/25/2001 12:46:21 PM EDT
Satcong, if you can steer me to a bank offering 4% mortgages, I want to refinance! Here's a link to current rates: [url]http://www.bankrate.com/brm/default.asp[/url]
Link Posted: 9/25/2001 12:46:58 PM EDT
3-4% would be more likely for variable (ARM) rates. A little more risk, but always a possibility depending on how long you intend to live in the home, how much more you intend to make in 3/5/7/10 years, etc. Fixed rate at under 7% is pretty common about now.
Link Posted: 9/25/2001 12:56:51 PM EDT
Link Posted: 9/25/2001 1:06:24 PM EDT
Originally Posted By Goet: That's a decent rate, but then it depends on many things. Is the 3% for your down payment (ie. FHA)? Is it 3% in points? For decent and brief explanations of different types of loans PLUS some calculators go here: http://www.countrywide.com/RetailLoans/Purchase.asp You can plug in some various numbers in their calculators and figure out what your monthly would be (minus tax and insurance, of course), play with more/less down, points, prepayment, etc. Here's another great calculator that figures out the whole mess with graphs: http://www.jeacle.ie/mortgage/
View Quote
30 year fixed. Conventional loan. 3% down. The 3% number was suggested as you get no break for any more down until it is a large piece.
Link Posted: 9/25/2001 1:15:09 PM EDT
Hmm... Conventional? Conventional loans are like what Paul is talking about. 20% down PLUS any points to pay down the rate. Are you putting 20% down IN ADDITION to the 3%? If it is just 3% down, then you are most likely looking at an FHA or some other govt. loan.
Link Posted: 9/25/2001 1:56:27 PM EDT
[Last Edit: 9/25/2001 1:58:08 PM EDT by Matt_S]
For a 15 year fixed with 25% down, and paying 1 point. I was quoted 6.125% last wednesday. for a 30 year wtih 25% down, and zero point, I was quoted 6.625% Since I'm not looking at grossly expensive houses. I'll ge takin' that 15 year loan. I want to build that equity quickly!!! If you plan on staying there for a long time, it will save you to buy down the rate. Granted if the difference is only .125% then you have to weight cash flow issues. The best thing to do is keep the loan term as short as possible. A loan officer once told me that on a 15 year loan you own 30% or your house in the first 5 years. On a 30 year loan, you only own 3% of your house after the first 5 years. A 15 year loan to term, you effective (total cash outflow) buy your house 1.5-2 times. On a 30 year loan, you buy your house 3-4 times.
Link Posted: 9/25/2001 2:23:13 PM EDT
The FED/Greenspan is supposed to lower lending rates soon, like a 1/2 percent and then maybe another 1/4 to 1/2 shortly after. Might be a good time to wait for the changes.
Link Posted: 9/25/2001 4:32:58 PM EDT
Nope, this is a conventional loan. 6 7/8% with 3% down. There is the origination fee & other stuff that is expected. Based on what you guys say, I think this is a good deal & will give it a week or so before locking in. Thanks, Scott
Link Posted: 9/25/2001 4:36:07 PM EDT
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