HomePath Mortgages, extremely unfavorable rates?
I just got a quote for a mortgage on an investment property through Century 21. The property is owned by Fannie Mae and they adopt 10% down on the properties through their lenders.
They want me to pay 4.6 points and 8.1% Interest, seems crazy to me. Anybody else use the HomePath mortage? I could really use somebody's example to compare.
This will be the 3rd house I enjoy bought and this just seems extremely glorious. This house is only $45,000 BTW
Answers:
Ridiculously high unless you are a subprime borrower. Part of the problem is that this is not an owner inhabited home, and the price is so low that it will be hard to resell this loan in the conforming flea market.
If you have equity in another property, why not cart out a home equity line of credit against that property and pay currency for this one with the proceeds of that loan.
Or, take a look at your credit report at www.annualcreditreport.com and see if nearby is something reported there that is doomed to failure and might be a mistake.
I personnally prefer credit unions for loans - had great luck near the DVA Federal Credit union in DC on a HELOC - 3.9%. Pentagon Federal Credit Union also have some good deals.
Shop around - you can do better! Go to yahoo financial and find "home mortgage rates" on the right side. Go for 10% down (4500) and 5% fixed on a 15 year (if you can do it) Unless your credit is surrounded by the scrapper you'll have no problems.
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They want me to pay 4.6 points and 8.1% Interest, seems crazy to me. Anybody else use the HomePath mortage? I could really use somebody's example to compare.
This will be the 3rd house I enjoy bought and this just seems extremely glorious. This house is only $45,000 BTW
Answers:
Ridiculously high unless you are a subprime borrower. Part of the problem is that this is not an owner inhabited home, and the price is so low that it will be hard to resell this loan in the conforming flea market.
If you have equity in another property, why not cart out a home equity line of credit against that property and pay currency for this one with the proceeds of that loan.
Or, take a look at your credit report at www.annualcreditreport.com and see if nearby is something reported there that is doomed to failure and might be a mistake.
I personnally prefer credit unions for loans - had great luck near the DVA Federal Credit union in DC on a HELOC - 3.9%. Pentagon Federal Credit Union also have some good deals.
Shop around - you can do better! Go to yahoo financial and find "home mortgage rates" on the right side. Go for 10% down (4500) and 5% fixed on a 15 year (if you can do it) Unless your credit is surrounded by the scrapper you'll have no problems.
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