Mortgage rate?
I am not putting any down payment on a home and am getting it fully financed. The broker quoted me 6.25% on it. Is this a decent rate?
Also, does anyone own any idea if rates are going to be dropping anytime soon? I heard a rumor that the Bond marketplace was in an upwsing thereby cause mortgage interest rates to drop.
Answers:
you did not mention the price of your Mortgage.
$1302 interest payments on $250k,, at 6.25%
$1041 interest payment on $250k at 5% with money down. But if you don't own the down payment, good luck.
5.75% canada
6.25% may be a good rate or even a GREAT rate depending on the type of loan you are qualifying for. There are a little factors that determine your qualifying interest rate. These factor include your current credit score, purpose of the loan (purchase vs. refinance), the loan size, and the % borrowed in relation to the advantage of the homes worth (LTV). In addition, the TYPE of loan can change the factor of your rate. Is this loan a FIXED RATE, ADJUSTABLE RATE (ARM), INTEREST ONLY, BALLOON, ETC? If your loan is 100% financed, with no money down, then this is an incrediable interest rate because you are financing the entire loan amount. In the eyes of a bank/mortgage lender you would be considered a lofty risk. The higher a risk you are then typically you can expect a highly developed rate (7, 8, 9%+). Also, make sure you ask if the broker LOCKED your rate, otherwise you are open to shifts surrounded by the market. Brokers may "table close" you as a customer. This means that they will bring up to date you the day of your closing that you rate has suddenly gone UP! In oodles cases this is due to the greed of the broker becase they are paid by the bank for getting you to sign at greater rate. My suggestion is to do your research, work with a reputal lender, and try to visit near the broker in person.
As for rates dropping. The Federal Reserve is due to join in March to discuss lowering the rate .25%, but that doesn't mean the reserves will be passed on to you.
Good luck!
Whoa, you still be able to get a mortgage lacking a down payment? I'm shocked you could find a lender that still did that. For a 30 year mortgage 6.25% is a good rate. I'm curious did you hold to get PMI or did you get another loan to cover the 20% down pay-out?
The mortgage rates should be dropping, but I don't think the drop will be more than a few basis points, but I'd be more concerned in the region of falling real estate prices (unless you plan to live in the house longer than 5-10 years it shouldn't event much.)
Related Questions:
My father is going to nouns my mortgage privately using his own money and charging me an interest rate. . .?
I need to file a lien beside the county so that I can deduct interest yearly bad my taxes. Can I do this relatively cheap without hiring someone for the documents? Call the...
Also, does anyone own any idea if rates are going to be dropping anytime soon? I heard a rumor that the Bond marketplace was in an upwsing thereby cause mortgage interest rates to drop.
Answers:
you did not mention the price of your Mortgage.
$1302 interest payments on $250k,, at 6.25%
$1041 interest payment on $250k at 5% with money down. But if you don't own the down payment, good luck.
5.75% canada
6.25% may be a good rate or even a GREAT rate depending on the type of loan you are qualifying for. There are a little factors that determine your qualifying interest rate. These factor include your current credit score, purpose of the loan (purchase vs. refinance), the loan size, and the % borrowed in relation to the advantage of the homes worth (LTV). In addition, the TYPE of loan can change the factor of your rate. Is this loan a FIXED RATE, ADJUSTABLE RATE (ARM), INTEREST ONLY, BALLOON, ETC? If your loan is 100% financed, with no money down, then this is an incrediable interest rate because you are financing the entire loan amount. In the eyes of a bank/mortgage lender you would be considered a lofty risk. The higher a risk you are then typically you can expect a highly developed rate (7, 8, 9%+). Also, make sure you ask if the broker LOCKED your rate, otherwise you are open to shifts surrounded by the market. Brokers may "table close" you as a customer. This means that they will bring up to date you the day of your closing that you rate has suddenly gone UP! In oodles cases this is due to the greed of the broker becase they are paid by the bank for getting you to sign at greater rate. My suggestion is to do your research, work with a reputal lender, and try to visit near the broker in person.
As for rates dropping. The Federal Reserve is due to join in March to discuss lowering the rate .25%, but that doesn't mean the reserves will be passed on to you.
Good luck!
Whoa, you still be able to get a mortgage lacking a down payment? I'm shocked you could find a lender that still did that. For a 30 year mortgage 6.25% is a good rate. I'm curious did you hold to get PMI or did you get another loan to cover the 20% down pay-out?
The mortgage rates should be dropping, but I don't think the drop will be more than a few basis points, but I'd be more concerned in the region of falling real estate prices (unless you plan to live in the house longer than 5-10 years it shouldn't event much.)
Related Questions:
My father is going to nouns my mortgage privately using his own money and charging me an interest rate. . .?
I need to file a lien beside the county so that I can deduct interest yearly bad my taxes. Can I do this relatively cheap without hiring someone for the documents? Call the...