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I feel like that's a good rate. We are going with a VA loan. Got the loan estimates last week with the exact same interest rate (3.875%). I was in the same boat as you regarding seeing the online banking rates that are lower and was kind of skeptical, but after speaking with a friend also in the process of buying a house, I realized it's a good rate. She has a rate of 4.00%.
It's kind of sad, though, because in June the rates were lower at 3.625%
No. They are actually trending down. I work in title, so I do see things at the end of the rate lock, but up until a few weeks ago, I couldn't even find a 4.0% on a 30 year fixed without points. Rarely did anything come through below 4.25%. 4.0% is be coming more common now.
I am looking for feedback on my mortgage interest rate because I thought it was a good rate but after some more research I am not sure. I was quoted 3.875%. We are putting 15% down and have credit scores in the high 790s. No fee for locking and no points. I know there are other factors but I am just wondering if as a general matter this is a good rate.
Rates are trending down currently like others mentioned, I don't know how low itl go. I bought in November 30 year va 3.25% 3.31apr from USAA with no points. I think they will drop back down to it eventually, I mean it was that low once. Why wouldn't it get back there?
The reality about credit scores is that your exact score doesn't seem to matter as much as they would have you believe.
I mean, it matters, but as long as you are over a certain threshold then exceeding that threshold doesn't really have much benefit. There will be a marked difference if you have a score in the low 500s vs upper 700s. But upper 600s vs low 700s....it's deminimus.
The banks would never want to admit that though....they are in the business of selling, and keeping every customer scrambling to try to inch their score up a few points is in their best interest. Just like advertising hypothetical low interest rates for hypothetical customers keeps us all begging for more more. It keeps us trying to buy or consume more banking 'products'.
The reality about credit scores is that your exact score doesn't seem to matter as much as they would have you believe.
I mean, it matters, but as long as you are over a certain threshold then exceeding that threshold doesn't really have much benefit. There will be a marked difference if you have a score in the low 500s vs upper 700s. But upper 600s vs low 700s....it's deminimus.
The banks would never want to admit that though....they are in the business of selling, and keeping every customer scrambling to try to inch their score up a few points is in their best interest. Just like advertising hypothetical low interest rates for hypothetical customers keeps us all begging for more more. It keeps us trying to buy or consume more banking 'products'.
au contraire Marian. Maybe the exact score doesn't matter much for gov't loans (FHA, VA, USDA), but it can make a substantial difference on conventional loans. If your FICO is 740+, your right, it doesn't matter (740 borrower gets the same deal as an 800 borrower). However, if you are 739 or less, then every 20 points can have substantially affect your closing costs, interest rate or a combination thereof.
Lets say a two borrowers are purchasing homes for $250k each with 20% down. The 1st borrower is a 721 FICO and gets a quote of 4% with no points. The 2nd borrower is a 679 FICO. The 679 FICO can get the same rate of 4% but would have to pay 2 full points. This means due to the 42 point difference in FICO, the 679 borrower has to pay an additional $4k vs. the 721 FICO borrower.
So, you may want to ease up on the banking conspiracy theory.
The reality about credit scores is that your exact score doesn't seem to matter as much as they would have you believe.
I mean, it matters, but as long as you are over a certain threshold then exceeding that threshold doesn't really have much benefit. There will be a marked difference if you have a score in the low 500s vs upper 700s. But upper 600s vs low 700s....it's deminimus.
The banks would never want to admit that though....they are in the business of selling, and keeping every customer scrambling to try to inch their score up a few points is in their best interest. Just like advertising hypothetical low interest rates for hypothetical customers keeps us all begging for more more. It keeps us trying to buy or consume more banking 'products'.
Where are you getting this? Just Google "Fannie Mae Loan Level Pricing Adjustors" (this should bring up a PDF "LLPA) and you can see exactly how much 20 points costs you. These are the fees Fannie charges lenders, for various scores, loan to values and features (property type, combo financing).
20 points = $1000s
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