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The money that you pay down will not bear any interest and your mortgage note will be smaller.
I understand that sir, but i guess i could have been more specific with my question.. If I put down 50% as opposed to 20%, will that get me a lower interest rate to negotiate?
I understand that sir, but i guess i could have been more specific with my question.. If I put down 50% as opposed to 20%, will that get me a lower interest rate to negotiate?
It will depend on your FICO score. Fannie Mae and Freddie Mac initiated Loan Level Price Adjusters which increases costs for borrowers based on loan to value and FICO score.
If FICO score is 740 or higher, you get the best rate with only 20% down.
If FICO is 720 to 739, you have to put down 25% to get the best rate or pay an additional .25(for each $100,000 that is an extra $250) in cost.
If below 700, you would have to put down 40% or pay extra.
It will depend on your FICO score. Fannie Mae and Freddie Mac initiated Loan Level Price Adjusters which increases costs for borrowers based on loan to value and FICO score.
If FICO score is 740 or higher, you get the best rate with only 20% down.
If FICO is 720 to 739, you have to put down 25% to get the best rate or pay an additional .25(for each $100,000 that is an extra $250) in cost.
If below 700, you would have to put down 40% or pay extra.
It will depend on your FICO score. Fannie Mae and Freddie Mac initiated Loan Level Price Adjusters which increases costs for borrowers based on loan to value and FICO score.
so is this only true for Fannie Mae and Freddie Mac or is this how all the lenders will work? I am trying to see how much I will be able to afford to buy a house in DFW. I will also post a separate question regarding this.
Yes, on government loans it doesnt really matter how much you put down... everyone gets the same rate with no pricing hits. Since you are putting at least 20% down, you shouldnt consider an FHA loan.
All lenders follow the Fannie/Freddie LLPA's.
Where you moving from? I have been living in the DFW area for about 10 years and really like it here.
Could also make a difference in the interest rate if putting more than 20% down gets you down to a Conforming loan, as apposed to a Super Conforming. Super Conforming loans usually have worse rates.
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