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First I would like to ask if 4.25% with a 5.813% APR is a decent rate these days.
Then, perhaps, someone that really knows how this stuff works can shed some light on regular interest rate and an APR. It seems to me like most of us are dummies when it comes to understanding all of this. I can definitely grasp the rate they lock you into but not exactly all that familiar when they throw in the yearly rate or APR....if I even made sense there. Anyhow, please feel free to jump right in and help us understand.
First I would like to ask if 4.25% with a 5.813% APR is a decent rate these days.
Then, perhaps, someone that really knows how this stuff works can shed some light on regular interest rate and an APR. It seems to me like most of us are dummies when it comes to understanding all of this. I can definitely grasp the rate they lock you into but not exactly all that familiar when they throw in the yearly rate or APR....if I even made sense there. Anyhow, please feel free to jump right in and help us understand.
Thank you.
First question:
NO but then without knowing more details, it's hard to say.
APR is not all that complicated. It is supposed to help you shop and compare mortgage.
OH, thank you. So, you are saying that a 4.25% is not decent, good? What details are you looking for exactly. It's a 30yr fixed fha loan. The purchase price is $257K. Oh, and my fico score is around 730. Hopefully, that helps. But to be honest with you I thouth 4.25% was good.
4.25% is a great rate for today. However, with an APR over 5.8%, you're paying A LOT of fees for that rate. The APR is your rate plus your fees equalized out for the first year. That means you want your APR to be as close to your actual rate as possible, otherwise you're paying a heck of a lot of fees!
OH, thank you. So, you are saying that a 4.25% is not decent, good? What details are you looking for exactly. It's a 30yr fixed fha loan. The purchase price is $257K. Oh, and my fico score is around 730. Hopefully, that helps. But to be honest with you I thouth 4.25% was good.
Need to see what a GFE looks like. It will be clear on there as to why you have a 1.5% difference between rate and APR. Good 30 years is around 4.25% with APR around 4.3%
If you can save an additional 2% go conventional, with your FICO it would be a much better program were PMI can drop off the loan. FHA you pay the MIP for the intire of the loan.
If you can save an additional 2% go conventional, with your FICO it would be a much better program were PMI can drop off the loan. FHA you pay the MIP for the intire of the loan.
Exactly. The FHA up-front mortgage insurance bloats that APR number quite a bit.
Are you paying your own closing costs? If you can negotiate so that the seller pays them, you might free up enough funds to get to a 5% down position on a Conventional loan.
Do what you need to do to close it, beggars can't be choosers and you already had one lender fail you. You are leveraging to buy an investment property an extra point or two is nothing in the grand scheme of things.
Do what you need to do to close it, beggars can't be choosers and you already had one lender fail you. You are leveraging to buy an investment property an extra point or two is nothing in the grand scheme of things.
You are definitely correct! Besides, when it's all said and done I will hardly be paying much out of pocket. The house will be pretty much paying for itself and I will be almost living there for free. So, I can't really complaint much. Thanks for everyone's reply.
Don't second guess yourself now - keep on marching.
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. So, I can't really complaint much. Thanks for everyone's reply.
