Quote:
Originally Posted by rcarrillo
All hail the mortgage wizard with the 100% clear crystal ball of rates  |
Can you tell me,
what if I have a 600 score? What about a 680 score?
If you have a lower score - then you want to go FHA. If you have a higher score, and you have equity and good credit score, good income, etc... Then you want to look at conventional lenders.
What if I am paying 0 points?
The interest rate will be a little higher. There will be title/filing, escrows/ county and state taxes that will be part of your total closing costs...
What if its a no or reduced closing cost loan?
Your closing costs are rowed into the loan, resulting in a higher interest rate.
How about on a second home?
It is different from lender to lender, I had a discussion last night with a client, looking to buy an smaller investment home that was over 100 miles away from his primary. I mentioned we should look at checking out the requires for applying for a 2nd home mortgage, which would result in a lower interest rate.
What if I am doing 5% down?
How about 20% down? How about 5% down with no PMI? Is this rate good in TX? How about NC? How about CA? Every loan is different, due to the borrower's income, credit, selling price, etc. If they apply for a FHA loan. These type of loans offer lower rates and less down for people with lower credit scores. Another advantage on FHA loans the mortgage insurance is cheaper then convention loan insurance. If a borrower's is putting 20% down, then you need to look at conventional loans, like the situation we are discussing in this post.
What if I want to lock my rate for 30 days, not the 15 you just quoted with those points? How about a 60 day lock?
The secret is having to 1003,1008, credit already approved with different lenders. Also having an appraisal company that can give a one day turn around. I have closed loans in less than a week, to secret is having everything organized.
What if I need a stated income loan? Yesterday looked at rate state for SISI and SISA loans, the rates were surprisingly low. However a 75% LTV or lower was required.
Its great to toss around zingers, our politicians sure love to do it. But be careful when you toss around interest rates without any regard to someones qualifications. The "one size fits all" advice the last few years (along with everyone "deserves" a home) is part of the reason for the mess we are in.
My answer to this question - if a person has good credit, good income, good value, and they need to lower their house payments. One wants to know what the lower interest rates that are out there. So when you are shopping for a loan, they can ask why that one particular bank/broker rate higher. If a person has bad credit, low income, upside down value - that is the persons I talk to everyday to help them save their homes.
No one can say 100% what the rates will do in a few weeks, no one can say if they will go up or down in November. You are giving out advice that others might listen to with
ZERO knowledge of their situation or liability if they take your advice and it proves to be wrong.
As for predicting the interest rates - one has to look at history. When value is high, the rates are low. When value is low, rates are high. Except during an election year. The government normally schedules interest rate adjustments twice a year, June 15th and Nov 15. Interest rates tend to raise before those dates, and drop after those dates (except during an election year).
As lenders we need to be a little more cautious than that. Which is why its ILLEGAL to offer or advertise an interest rate without a corresponding APR. So... on your 5.375% rate what is my APR going to be?? The answer to this question is - the federal government requires lenders to quote APR because loans frequently are offered on different terms. APR takes into account some costs of getting the loan, including points, most loan fees and mortgage insurance. It does not take into account certain charges, including nonrefundable application fees, late payment charges, title insurance premiums, and fees for title examination, property appraisals and document preparation. The rates posted are no doubt par rates, which includes buying the rate down.
Guess what - the rates are still falling........
My mid score is 796, with 60 LTV. I currently owe $110k on 1st mortgage @ 4.75% fix 240mth and owe $75k on 2nd 6.75% 360mth. Looking to consolidate into one loan. I am watching these rate everyday!!!!
30yr rates 9/11/08
6.000 -1.829 -1.579 -1.204 -0.954
5.875 -1.426 -1.176 -0.801 -0.551
5.750 -1.092 -0.842 -0.467 -0.217
5.625 -0.696 -0.446 -0.071 0.179
5.500 -0.287 -0.037 0.338 0.588
5.375 0.238 0.488 0.863 1.113
..
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Me too!!! Me too!!
