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Old 08-19-2008, 02:47 PM
 
Location: Houston
57 posts, read 379,203 times
Reputation: 31

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Quote:
Originally Posted by tstone View Post
Yeah it is a little high, I think.

My first time buyer rate was 5.75% on the same loan amount, but it was back in 2005. No strings attached to that rate.

However, things have changed in the mortgage market since 2005.

I'd advise anyone to shop around aggressively. The internet makes it easier...
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Old 08-19-2008, 02:56 PM
 
Location: Pittsburgh N. Hills / Houston-Clear Lake
8,156 posts, read 26,425,344 times
Reputation: 4395
Quote:
Originally Posted by hammer2000 View Post
However, things have changed in the mortgage market since 2005.

I'd advise anyone to shop around aggressively. The internet makes it easier...

Yeah, that's why I mentioned 2005.

Mortgage Rates Loan Compare Interest Rate Refinance Loans | Adjustable Rate Mortgage | Mortage

Says the going rate is about 6.37%.
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Old 08-19-2008, 06:08 PM
 
67 posts, read 235,792 times
Reputation: 42
Quote:
Originally Posted by tstone View Post
Yeah, that's why I mentioned 2005.

Mortgage Rates Loan Compare Interest Rate Refinance Loans | Adjustable Rate Mortgage | Mortage

Says the going rate is about 6.37%.
Yep 6.3-6.5 is the going rate, I'd shop around.
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Old 08-19-2008, 06:30 PM
 
Location: Lake Conroe, Tx
637 posts, read 2,869,087 times
Reputation: 410
Quote:
Originally Posted by marykate1 View Post
Esimated Interest Rate is 6.6 and the APR is 7.38.
Quote:
Originally Posted by marykate1 View Post

Does that mean we pay 6.6% interest or 7.38 interest.



This means your mortgage broker or banker is trying to take advantage of your naievety about yield spreads, which is exactly what the difference is from what the bank is charging you and what you are going to actually be paying. Don't worry the nice lady at the title co will simply explain this away as if it were no big deal but you will be paying 7.38. Are you using a builders lender? They will usually try and pull things like this as will other unscrupulous lenders. The easiest way to tell if a mortgage broker or banker is a crook in Texas is look on the GFE where it says "yield spread"; if it's wider than the Grand Canyon beware, as you are about to be taken to the bank literally.
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Old 08-19-2008, 06:32 PM
 
Location: Spring, Texas
406 posts, read 1,490,912 times
Reputation: 161
Rates also depend on applicants ....credit file, lender participation and/or down payment. Makes it difficult to just shop the rates onlines. Sunny
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Old 08-19-2008, 09:53 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,965 times
Reputation: 249
Quote:
Originally Posted by marykate1 View Post
Here is the information:

Estimated Interest Rate: 6.625% (7.389% Estimated APR)
Conventional - 30 YEAR FIXED

So the above means that I will be paying 7.38% annual interest on my 179K loan.

For first time home buyer I think that is very high.

Your Interest Rate is what your payment is based on.

The APR is simply a rate with calculates most of your costs associated loan for your closing. The idea is that all banks/lenders/brokers use the same form and fill it out properly so that you can easily compare how much each with cost without having to physically look and add up all the fees. but, despite repeated attempts by regulators to establish usable and consistent standards, APR does not represent the total cost of borrowing nor does it really create a comparable standard. for the most part, its just a fancy number that wont even be accurate till you are at the closing table.

for a loan of 179k @ 6.625% your Principle and Interest payment would be $1920.94 per month.

what you want is a copy of the Good Faith Estimate. This breaks down the cost of the loan and all the fee's associated. but remember, even GFE's are still only estimates. you can use this form to compare different companies.

As far as commenting on this rate being good or bad. please refer to the following:

What should be my interest rate?
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Old 08-19-2008, 10:22 PM
f_m
 
2,289 posts, read 7,364,557 times
Reputation: 868
Here is Wells Fargo rates. The APR is only slightly higher than the interest rate. I would only expect it to be about 1/4% or so higher.

https://www.wellsfargo.com/mortgage/rates
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Old 08-19-2008, 10:29 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,095,994 times
Reputation: 1007
APR will vary by lender.

Two lenders may have the same fees, and the same rate, but different APRs. Not all lender calculate the APR the same way. This is why you can't shop lenders by their APR.

I wrote a small tutorial in how to shop a mortgage on here and here

Remember that there are two rates.
Note rate - what your monthly payment will be
APR - all the fees associated with the loan rolled into the interest rate.

The apr seems high but it could be because the loan has PMI or it has upfront MIP (FHA). It maybe because it is a VA loan which normally has a 2-3% funding fee. It can be for a lot of reasons.
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Old 08-19-2008, 10:43 PM
 
Location: Dallas, TX
243 posts, read 1,038,836 times
Reputation: 103
I hate to sound like a moron - but how did you come up with the following:

"for a loan of 179k @ 6.625% your Principle and Interest payment would be $1920.94 per month."

The reason it caught my eye is that I'm looking at a mortgage on almost 100K more with the same interest rate, but my principle and interest is going to be close to $1800. When I ran 179 and 6.625 on one of the free mortgate calc sites it came up with a payment of $1146 per month. (Not sure how reliable free online calculators are).
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Old 08-19-2008, 11:24 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,965 times
Reputation: 249
Quote:
Originally Posted by Smokipenelope View Post
I hate to sound like a moron - but how did you come up with the following:

"for a loan of 179k @ 6.625% your Principle and Interest payment would be $1920.94 per month."

The reason it caught my eye is that I'm looking at a mortgage on almost 100K more with the same interest rate, but my principle and interest is going to be close to $1800. When I ran 179 and 6.625 on one of the free mortgate calc sites it came up with a payment of $1146 per month. (Not sure how reliable free online calculators are).
oops your are right. i must have put it $279k by accident.

$179k @ 6.625% = $1146.16
based on $279k @6.625% payment is $1786.47
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