Is 6.25% a good rate?? (PMI, loan officer, credit score, loan)

[brandy76]

Is 6.25% a good rate for a 30yr fixed? This is for a loan amount of $330K for a townhome in Clifton, NJ.

I just found out this is what my rate will be. I went with a mortage broker, but this seems high. What questions can I ask to find out why??

[cdelena]

There are too many variables for a pat answer, but the rate is higher than I would expect. The current competitive rate for 30 yr fixed is 5.25 to 5.50.

[brandy76]

What factors would go into getting this higher rate? Our credit scores average out to 740. Can we go back to the broker and ask him to find a lower rate?

This is our 1st time buying a home and we wanted to put an offer on something today, but I don't want to do it with that rate

[Davachka]

We got a lower rate for a jumbo loan (which is one for over 417K) and jumbo loans are typically higher than regular ones at that rate so I would expect yours to be lower.

[JMC49]

you need a mortgage loan officer not a broker call mine at 201-370-0372 John Gugliotti tell him Joey sent you...god luck

[brandy76]

Originally Posted by JMC49

you need a mortgage loan officer not a broker call mine at 201-370-0372 John Gugliotti tell him Joey sent you...god luck

Thanks! I thought a broker is supposed to find the best rates from multiple sources. What company does your contact work for?

[TimtheGuy]

Originally Posted by brandy76

What factors would go into getting this higher rate? Our credit scores average out to 740. Can we go back to the broker and ask him to find a lower rate?

This is our 1st time buying a home and we wanted to put an offer on something today, but I don't want to do it with that rate

An 'average' is not used. If you are applying for joint credit the lender will use the middle score of the lower of the two. ie. you are a 750/740/730 and your co-borrower is 740/720/700 your deal will be based on a score of 720.

[TimtheGuy]

ps. a rate of 6.25% would indicate you are getting 'hit' for something. "Going" rate today for the best qualifiers would be around 5.25%-5.375%. Are you putting less than 20% down? If so maybe you have some kind of lender paid mortgage insurance??

[zulu400]

Is this a FHA loan ?

[brandy76]

Originally Posted by TimtheGuy

ps. a rate of 6.25% would indicate you are getting 'hit' for something. "Going" rate today for the best qualifiers would be around 5.25%-5.375%. Are you putting less than 20% down? If so maybe you have some kind of lender paid mortgage insurance??

We're putting 10% down. But the mortgage broker didn't mention PMI as being the reason he just said that's the rate.

I'm leaning towards not going with this guy and going with the realtors mortgage person instead. My bf found this guy through a "friend of a friend" and he's now wants to broker the deal since he is a realtor too!! We already have a realtor and I just don't trust this guy