Posted on: 27th Feb, 2008 08:56 am
I am a first time home buyer. I make 50k a year and my middle credit score is 781. I am taking a loan out for $220,000 with $25,000 down. I have no debt or outstanding bills. I was quoted a rate of 6.50 percent with no PMI or points ($1387/month). My closing date is March 30th. Is that a good rate and should I lock in now or wait and see if the rates drop. When I put my offer in on the house over 4 weeks ago the rates were really favorable, but they have gone up alot in the past month. I live in NJ.
rates may be coming back down again...today we have seen a slight improvement.
that being said, rate shopping and forecasting is a crap-shoot. there is no way we can predict these days. a couple of weeks ago, if you had asked that, i think the consensus would have been that rates were stable and perhaps destined to go lower. instead, we saw the rate environment react in the different direction.
that you have a no-point rate along with no PMI (which means your rate is slightly higher than it could be, but the lender is paying the pmi for you), makes me think your rate is certainly okay. i might wait another day - or at least a few more hours.
with that lender paid pmi, you are probably .25 higher than you would pay if you were responsible for a monthly pmi premium.
that being said, rate shopping and forecasting is a crap-shoot. there is no way we can predict these days. a couple of weeks ago, if you had asked that, i think the consensus would have been that rates were stable and perhaps destined to go lower. instead, we saw the rate environment react in the different direction.
that you have a no-point rate along with no PMI (which means your rate is slightly higher than it could be, but the lender is paying the pmi for you), makes me think your rate is certainly okay. i might wait another day - or at least a few more hours.
with that lender paid pmi, you are probably .25 higher than you would pay if you were responsible for a monthly pmi premium.
Hi,
Welcome to the forum.
I think George has given you sound suggestions. Rates may go up or even go down in few days. I think with no points and no PMI it is not a bad deal. So if you can afford it you can lock it now.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
I think George has given you sound suggestions. Rates may go up or even go down in few days. I think with no points and no PMI it is not a bad deal. So if you can afford it you can lock it now.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Thank you for the responses. My mortgage agreement date is March 14th and the closing date is March 30th so I have some time to decide. I can afford it at the rate now, but it is pushing my limits. When I first put the offer in on the house and the rates were in the mid 5s I was alot more comfortable. My home inspection is tomorrow night so I want to at least wait until after that to get a mortgage.
Hi elohdaeh,
Congratulations and best wishes for your first step towards a new home. :)
Whether it's an FRM or an ARM, national average rates are up currently. So, you can wait till tomorrow as they keep changing day by day, even twice or thrice a day.
Overall 6.5% looks good but if you aren't comfortable, please don't lock it. Talk to other lenders and see if they can give you better quotes. It varies actually from one lender to another. You may even send in your request for mortgage quotes to our community. As soon as we receive it, we shall forward to the communtiy lenders so that they can match their profiles with your requirements and offer quotes based on your financial situation.
Please don't hesitate to ask if you have more queries.
God bless you.
Samantha
Congratulations and best wishes for your first step towards a new home. :)
Whether it's an FRM or an ARM, national average rates are up currently. So, you can wait till tomorrow as they keep changing day by day, even twice or thrice a day.
Overall 6.5% looks good but if you aren't comfortable, please don't lock it. Talk to other lenders and see if they can give you better quotes. It varies actually from one lender to another. You may even send in your request for mortgage quotes to our community. As soon as we receive it, we shall forward to the communtiy lenders so that they can match their profiles with your requirements and offer quotes based on your financial situation.
Please don't hesitate to ask if you have more queries.
God bless you.
Samantha
