Decent interest rates
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Brian
Decent interest rates
I am in the process of purchasing a land/home package for 140K. I have done alot of research and decided to go with Fuqua and I am really impressed with the construction of the home. I have been approved with an intrest rate of 8.37%. I had a 650 beacon for the last 6 years with all 1's, with the exception of the last 3 months. My wife has no credit and lost her job, due to that we were a late on her car payment for a couple months. Of course this reflected on my credit. Is the 8.37% a decent rate or should I shop more? Any help would be great.
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rmurray
Re: Decent interest rates
Ouch....is this a fixed rate or an ARM....???...
As a fixed rate this is ok for what is called C credit...just keep your credit clean for about 18 months...and if rates do not go up much...refinance...
You should expect that rates will rise and this payment will be the same forever....Be sure you can afford this payment even in times of emergencies....like when one of you is out of work...
If this is an ARM (agustable rate mortgage)...be sure that it is at least three years before first adjustment...This will give you time to get you scores back up and refinance at a fixed rate...even if the rates do rise and you have nothing more to gain than the fixed rate...Rates are very low now....and up is the only way they can go in the future...Not too many months ago..8.39% was considered an excellent rate...
As a fixed rate this is ok for what is called C credit...just keep your credit clean for about 18 months...and if rates do not go up much...refinance...
You should expect that rates will rise and this payment will be the same forever....Be sure you can afford this payment even in times of emergencies....like when one of you is out of work...
If this is an ARM (agustable rate mortgage)...be sure that it is at least three years before first adjustment...This will give you time to get you scores back up and refinance at a fixed rate...even if the rates do rise and you have nothing more to gain than the fixed rate...Rates are very low now....and up is the only way they can go in the future...Not too many months ago..8.39% was considered an excellent rate...
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JohnnyJ
Re: Decent interest rates
You obviously didn't buy plan to buy your home in 30 minutes, so why make a
30 year mortgage decision in a hasty manner?
Use the same procedure you used to find the right home to search for the
right financing. There are a lot lower interest rates on land - home purchases
than you have been quoted. Your rate sounds like a MH dealer rate. Shop
around, you can do better. Also, some dealers get kickbacks from the lenders
when arranging financing..... and it's legal.
With an %8.37 loan on your $140K, your payments would be about $1064 a
month. With a %6.5 loan, your payments would be about $885 a month. The
lower rate would also save you about $64,000 in interest over the life of the loan.
I don't know about you, but $64K is a lot of money to me.
good luck
30 year mortgage decision in a hasty manner?
Use the same procedure you used to find the right home to search for the
right financing. There are a lot lower interest rates on land - home purchases
than you have been quoted. Your rate sounds like a MH dealer rate. Shop
around, you can do better. Also, some dealers get kickbacks from the lenders
when arranging financing..... and it's legal.
With an %8.37 loan on your $140K, your payments would be about $1064 a
month. With a %6.5 loan, your payments would be about $885 a month. The
lower rate would also save you about $64,000 in interest over the life of the loan.
I don't know about you, but $64K is a lot of money to me.
good luck
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