Mortgage Interest rate any good?

J_V · #1 06-08-2007, 03:51 AM

I have good credit and should be able to get the best rate. I got my quote at 6.85%. I am disclosing all my documents and putting 20% down. I don't know how this works and I'd rather not shop it around. Is this reasonable or a rip off? Thanks in advance guys.

NL__Fool · #2 06-08-2007, 10:49 AM

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I don't know how this works and I'd rather not shop it around

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This is a really bad idea.

Shop around, you can save yourself thousands.

Would you buy a car without shopping around?

AS far as the interst rate goes I have no idea as I live in Canada, not the US my morgatge rate is 5.35% for 10 years

AbreuTime · #3 06-08-2007, 11:00 AM

6.85 seems high, but I'm just a consumer (not in the business). Rates have been rising recently, and I locked in at 6.375 about 2 weeks ago. I could probably only get 6.50 now. My FICO is around 740 (pretty much the top tier), and I was also looking to put 20% down.

Shop around at a few different places to make sure you're getting a good deal. Bankrate.com is a good site to compare prices on many different banking products.

AggroFish · #4 06-08-2007, 01:18 PM

6.85 is high, guy's getting probably 1.5 on the back.

Fishhead24 · #5 06-08-2007, 01:45 PM

How many pts are they charging you?

As mentioned, you should be able to do better by shopping around. Hurry, rates are rising as we speak.

dp13368 · #6 06-08-2007, 07:19 PM

Check out penfed, known to be top for mortgages.

J.A.Sucker · #7 06-08-2007, 08:10 PM

Depends on how much your property is. Also, you might have a problem being a gambler getting the best mortgage. Lots of banks won't lend to gamblers; I had this problem, even though I showed several years of tax returns and had tons of money in the bank. Say you're an investor.

That said, if you're getting a jumbo-rate loan, this rate is probably not too bad. Is this a fixed loan, ARM, what? Is it interest only or a P&I loan? Not enough info.

FWIW, you should probably get an interest only loan with no early payoff penalties. This way, when money is good, you can pay off the principal on the front end, but when money is tight, you can pay less. This is ideal for gamblers.

J_V · #8 06-12-2007, 06:09 PM

They don't know I'm a poker player, so that is good. This is also a second home for $750,000. Should that help or hurt my situation. My credit score is 750 or something and all signs point to me being able to get a good rate.

Rates supposedly went way up recently and its 7.1% for a 30 year, or 6.85% for a 10 year ARM? How do you guys feel about those?.

I called around and it didn't seem like anyone could beat it. My closing costs would be around $2500. Am I getting ripped off or is my offer reasonable?

rapidacid · #9 06-12-2007, 07:11 PM

I haven't been following trends too closely, but I think right now is probably not a great time for ARM since the trend is definitely up ( I got 5.875% 8 months ago ) ...

Since it kinda sounds like you have a decent amount of liquid cash, a bi-monthly mortgage will probably offer you a little bit better rate ( like and 1/8th or two ) ... so look at those

Since you're buying a 2nd home and it's pretty expensive, I doubt you're crazy concerned about $2500, but it's pretty easy to get the seller of the property to pay your closing costs for you

rapidacid · #10 06-12-2007, 07:13 PM

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My credit score is 750 or something and all signs point to me being able to get a good rate.

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You should be able to get the best rates unless you're leaving something out.

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Rates supposedly went way up recently and its 7.1% for a 30 year, or 6.85% for a 10 year ARM? How do you guys feel about those?.

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Just looking at my local lender they have 30yr fixed with 0 points for 6.875 ... do you see any points on your statement? Maybe they want you to put a little more money down.