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Whats A Good Rate?

8ball007 profile photo
  • Monday, November 01, 2004 @ 11:12 AM EST
  • 8 Comments

I have a house under contract that I am buying for 90% appraised value. The home is rented for 895.00 a month. I have excellent credit and was told by my broker that I can get 100% financing. The problem is I received papers today and the interest rate is %9.154 for 30 years. Is this a normal rate for someone with 710+ credit?

Thanks,

Tim

Comments(8)

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    ncboater29th October, 2004

    You should be able to get around 8%. Shop aronnd. Not every broker has the same lenders. I have used Delta and gotten some good rates before.

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    Devlon29th October, 2004

    HELL YEAH! For a non owner occupiedthat is a helluva good rate on a 30 year fixed. I have seen ARM's that have been that high

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    8ball00729th October, 2004

    I have an 5/1 ARM right now on an owner occupied and am only paying 6.13%. Nine percent is ridiculous I think. Commercial rates go for 10-14% and with my credit score I should be able to get it at arounf 7.5-8%

    Tim

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    SmileyFace29th October, 2004

    if you have no intention of keeping this property, don't get 30 year fixed loan. See if you can get 2 or 3 yr ARM, so you can get a lower rate. By the way, not many lenders offer 100% financing for O/O property, so obviosly the rates are high for 100% program. If you put down even 10%, since you have good credit, you should be able to get comforming loan with very reasonable rate, but you can only get fixed loan.

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    64Ford29th October, 2004

    I think you can find better.
    I recently had a 100% loan through Homecomings NOO for 7.5%, and just last month a 100% NOO loan through Greenpoint at 7.75%.

    Good Luck!

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    8ball00729th October, 2004

    Homecomings is who this loan is through and rates have went down the last month. HMMMMMMMMMMMM


    Tim

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    NewKidinTown230th October, 2004

    Ask if you can get an 80% first mortgage with a 20% second. The blended rate should be a lot lower.

    I suspect that the higher interest rate quoted on your 100% financing is also covering your PMI. Instead of paying a separate PMI premium, you are paying a higher interest rate. Ask the mortgage broker what your rate would be with a separate PMI?

    Look for 80/20 financing to avoid PMI on the first mortgage loan.[ Edited by NewKidinTown2 on Date 10/30/2004 ]

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    blueford30th October, 2004

    Your mortgage will probably be your single largest expense item. Shop around!

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