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Hey everyone, quick question about a condo I am trying to purchase in California. My wife and I are purchasing a condo from her parents, she has excellent credit somewhere around 790-800. I have a 680 FICO with no late payments ever or public records of any kind. High utilization ratio and a lot of inquiries that I am working on are effecting my score.
Anyways, we have enough to put 20% and the loan amount will be $202,000. Back in the begining of August we were told the best interest rate we could get for a 30 year fixed because of my 680 score was 5%. We were also given the option of paying down points of $5,000 to get to 4.5%, which we don't want to do because we don't know how long we will be in the place.
Does anyone think I could be getting a better rate? I saw that rates have gone as low as 4.3%, and although that is for the best credit it seems like we could do a little better than 5%.
My middle credit score is 680 and I'm re-financing my home at 4.75 with 1/2 point. I'd think you could get a better deal w/ your wife's credit score and having a double income, but who knows....it's probably different from state to state.
My middle credit score is 680 and I'm re-financing my home at 4.75 with 1/2 point. I'd think you could get a better deal w/ your wife's credit score and having a double income, but who knows....it's probably different from state to state.
I thought we would get a better deal as well, but it seems the lender is only concerned with my credit scores as my income would be paying for the majority of the mortgage.
Comparing your situation my quoted rate seems just about ballpark.
Lenders always use the lower of the middle credit scores of both husband and wife. Unless you are purchasing a very expensive condo you should be able to get a better rate. You wont be able to get the 4.375 you hear about, but you should be in the 4.625 to 4.875 range.
You should contact a broker in your area. Brokers can usually secure you better rates than if you call a direct bank.
There is also a 'price hit' (.75) for the property being a condo that will either raise your rate or your costs. This is in addition to your 'price hit' for your 680 score (1.375). On a loan amount of $202k this is the equivalent of $4,292. So you could get the "going rate" and pay an additional $4,292 on top of the regular closing costs OR you could cover this extra fee by accepting a higher rate.
fyi-you could avoid the .75 condo hit by putting 25% down instead of 20%.
Hey everyone, quick question about a condo I am trying to purchase in California. My wife and I are purchasing a condo from her parents, she has excellent credit somewhere around 790-800. I have a 680 FICO with no late payments ever or public records of any kind. High utilization ratio and a lot of inquiries that I am working on are effecting my score.
Anyways, we have enough to put 20% and the loan amount will be $202,000. Back in the begining of August we were told the best interest rate we could get for a 30 year fixed because of my 680 score was 5%. We were also given the option of paying down points of $5,000 to get to 4.5%, which we don't want to do because we don't know how long we will be in the place.
Does anyone think I could be getting a better rate? I saw that rates have gone as low as 4.3%, and although that is for the best credit it seems like we could do a little better than 5%.
Thanks for any advice!
Loyola, you could get a lower rate than the 5% and not pay discount points. In your particular case, you could get as low as 4.75% and not pay any discount points. Unfortunately, lenders do look at the lower of the two credit scores. In this case, your 680 credit score would cause a 1.5% hit to the rate, meaning that if your scores were higher you could possibly get even lower than the 4.75% because you do not have the 1.5% to contend with. One other factor in play is that the subject property is a condo. This also causes another hit of 0.75% to the rate. I would suggest that you shop around some more to get a better rate. Loo for a mortgage banker in your area. They are able to offer you better rates than mortgage brokers. Good luck to you.
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