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Old 08-24-2011, 06:41 PM
 
Location: Planet Earth
1,084 posts, read 3,146,148 times
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I finally got called back with a pre-approval packet and here's some information from the packet. Just curious what you think of the fees, rates etc...

I'm 32 and my credit scored used was 806.

30 years fixed FHA
Loan Amount - $313,625
3.5% down - $11,375
estimated prepaid items - $1,144.30
estimated closing costs - $7,603.75
PMI, MIP Funding fee - $3,136.25
Total cash to borrow = $23,259.60

Interest rate - 4.25%
APR - 5.246%

This is what their website says today for rates:
FHA 30 Year Fixed Rate
Rate APR Points
3.750% 4.772% 0.500%


Do my rates seem a bit high given my credit score? I have 0 debts besides a $150/month student loan payment. And what is "prepaid items" and "PMI, MIP funding fee"?

Thanks all
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Old 08-25-2011, 10:14 AM
 
Location: Austin
7,238 posts, read 20,678,238 times
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Your APR should be as close to your rate as possible. I'm not a mortgage person, but I help my buyers interpret their information on a daily basis and a rate of 4.25 with an APR of 5.246% is just not a good thing... You need to ask more questions to the mortgage person you spoke with...
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Old 08-25-2011, 10:20 AM
 
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Maybe the rate for 3.5% down is higher than 20% down?
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Old 08-25-2011, 11:30 PM
 
Location: Long Island
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Quote:
Originally Posted by Bideshi View Post
Maybe the rate for 3.5% down is higher than 20% down?
Bingo!
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Old 08-26-2011, 05:15 PM
 
Location: Planet Earth
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Can someone explain to me in simpleton terms interest rate vs apr?
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Old 08-26-2011, 06:49 PM
 
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APR is the fancy way of saying "we are going to slather on a whole bunch of fees (or rarely rebate you some dough) so that we get a bigger slice upfront (or with the rebate, worse rate for the borrower over longer period)"...

A loan that has the SAME APR and rate means the lender is not tacking on any fees or rebating any incentives.
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Old 08-26-2011, 06:51 PM
 
Location: Planet Earth
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So with that said is a 1 pt higher apr typical for my loan stats?
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Old 08-26-2011, 07:06 PM
 
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First timme buyer, 3.5% down FHA. Probably in the ball park right now. Some lenders might be cheaper, but a rate under 4.5% is pretty solid...
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Old 08-26-2011, 07:16 PM
 
Location: Austin
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Quote:
Originally Posted by ZenMaster2008 View Post
Can someone explain to me in simpleton terms interest rate vs apr?
Your APR is the interest rate PLUS all the fees they're charging you upfront at closing to obtain that rate. The higher the fees, the higher the APR. The APR is very seldom the same as the actual rate, but most lenders are pretty darn close these days. I have a buyer with a 4.35% and his APR is 4.72%. I have another buyer with a 4.5% and his APR is 4.67%. It's all about the fees, and to answer your question, without knowing your credit situation, I would caution one of my buyers to accept a rate with that many fees.
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Old 08-26-2011, 07:28 PM
 
Location: Planet Earth
1,084 posts, read 3,146,148 times
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Quote:
Originally Posted by FalconheadWest View Post
Your APR is the interest rate PLUS all the fees they're charging you upfront at closing to obtain that rate. The higher the fees, the higher the APR. The APR is very seldom the same as the actual rate, but most lenders are pretty darn close these days. I have a buyer with a 4.35% and his APR is 4.72%. I have another buyer with a 4.5% and his APR is 4.67%. It's all about the fees, and to answer your question, without knowing your credit situation, I would caution one of my buyers to accept a rate with that many fees.
My credit is excellent with a score (middle score) over 800 and no debt besides a small student loan payment.

I'm tempted to "shop around" but I don't want too many hard inquiries into my credit. Is it even possible to go to two different banks this close? Not sure how this all works.

And with my credit might it be better to try and go traditional with more down?
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