Middle Score 720 Need Help
I.m in the process of purchasing a property on 2 acre 2br 1bth @80,000
I've been approved @ rate 7.750 stated income, I'm realtor @ 5% down. my middle score is 720 is this a good rate.
can anyone beat this rate help I'm due to close next week. please respond
thanks,
faithful
If your due to close next week it is to late to be shoping for a better rate.
I have not been following rates for the last few weeks so I am not sure if it is a good one or not.
I'm not particularly impressed, unless you're getting 100 ltv...then it's probably ok right now.
But LA is right...your window is probably too short to be changing lenders at this point.
Good Luck,
Check with me before your next deal?
or one of your clients?
Thanks/Mark
Without knowing any details other than your FICO, Stated "Par" Rate on 30yr fixed is about 6.75% Today.
Thats 6.25% plus .500 point for Stated Income.
Of course, this is not your only loan option and it may serve you well to consider other loan programs. Things to keep in mind:
-Can you qualify "Alt-DOC" (alternative documentation loan)
-How long do you plan to stay in this residence.
-Short/Long term financial goals.
-If you are putting 5% down, What effect will PMI have on your mortgage payment and would a Second TD be a valid option for you whereby you would avoid PMI.
-Do you have other debt that is not tax deductable and what is your plan for eliminating this debt
These are just some of the questions you need to ask yourself (or your lender should be asking you) to be able to determine which is the right loan for you.
In reality, Rate is important to your short term bottom line, yes, but it should not be your primary concern. These days, with a 720 FICO, you should be able to get the lowest rate available to you if you are willing to pay for it.
If you have other debt you need to pay down, look for ways to stretch your dollar, like interest only or short term ARMs.
Think in terrms of leveraging a low interst, tax-deductible, home loan, to pay off compounding higher-interest debt or invest in compounding higher-yield investments.
Bottom line, as a Realtor, you should have established relations with a good Mortgage Banker. If he wants to give you a rate of 7.75%, I would advise you to look for another partner who is more interested in building trust rather than showing off his big commission check he earned from his Top-Producer Realtors' personal transaction.
Lee
Oh, and BTW,
5 days is not a lot of time but changing loan programs is not impossible. Many banks offer other loan programs under the same qualifying criteria. All the hard work is done and I have done so many times in the past. You may want to try the old, "I got a better rate from another lender - can you match it" game.
Changing lenders is a different story - But not impossible. You may need to get a short extension on your escrow. The seller has just as much time invested as you and may think a few more days may be better than the time it would take to find another buyer and start that process over again. You have a lot of leverage at this point and again, all the hard work has been done so 10 days max is all you should need...
Thanks for your reply,
I plan to move in and rehab,and hold for
2yrs. I'm debt free. Ive been faithful to this lender for awhile and she is saying this is the best she can do for me.she said the rates are up. she quoted me @ 6.2% Aug 1st and she did not lock me in.
I'm very disappoined in her.
It is hard to say if the rate you are getting is good because we need more info. How many points are you paying for loan origination? Are any of your closing costs paid by the lender? etc., since the LTV on this loan is 95% even with your good FICO score, 7.75% may not be such a bad deal. Again, a little more info could help us determine if you are getting squeezed or not. Oh, by the way, for some reason some companies offer lower rates in some areas. Some of my lenders quote lower prices in the Sacramento area compared to LA. Go figure. Good luck!
If I were you, I would look into anything other than a 30yr fixed....
IMHO you are getting raped by this lender. But, I don't know the whole story so....
Good Luck!
you need to at least conscider a 15 year term. if you are debt free you should be able to afford the extra $ 150.00 or so per month. that should reduce the interest by a half a point or so by it self.
John
If you are only going to hold for 2 years then you might also want too look into an ARM. This will lower your initial % even more.
Just watch out for pre payment penalties and the limits that they may raise the rate each year/term.
Good Luck!!!