Posted on: 14th Jun, 2009 10:35 am
I have a 626 credit score with a $7,500 bill in collections related to a Medical - Emergency Hospitalization. My wife's credit is around the 700. However I am the primary income in the household (Mine is 50k/year, my wife's 30K/year). We are planning to purchase a Home in Miami, FL in 2010. What rate do you think we can get based on all these facts? what should I do to optimize my interest rate in a 1-year time frame?
There is no way to tell based upon your scenario. Not only do we need more details but we have no idea what the rate will be one year from now.
Well, in that case... what kind of rate would we get if we want to apply for a loan rigth now?
Hi Mauro,
The mortgage rates have slightly gone up recently. At present, you can expect around 5.70% interest rate on a 30 year fixed mortgage and around 5.27% on 15 year fixed loan. The rate on 5/1 ARM is about 4.87%. The rates may increase or decrease in the next few days. The rates also vary in different locations.
To avail a good interest rate in 1 year time frame, you can improve your credit and take it to somewhere around 700 or 750 points. You can also save as much money as possible so you can put down a sizeable down payment and pay some discount points upfront. This will help you a lot in getting loans at affordable interest rates.
The mortgage rates have slightly gone up recently. At present, you can expect around 5.70% interest rate on a 30 year fixed mortgage and around 5.27% on 15 year fixed loan. The rate on 5/1 ARM is about 4.87%. The rates may increase or decrease in the next few days. The rates also vary in different locations.
To avail a good interest rate in 1 year time frame, you can improve your credit and take it to somewhere around 700 or 750 points. You can also save as much money as possible so you can put down a sizeable down payment and pay some discount points upfront. This will help you a lot in getting loans at affordable interest rates.
Know that if you go with an FHA approved loan whether you have a 626 or a 700 should not matter that much when it comes to the rate. Besides that the insurance may be cheaper with an FHA loan than conventional.
I have heard that with some changes to HIPAA you might be able to work with a credit specialist on the medical collections.
Hope this helps some.
AMFLENDING.COM
TX, FL, OK, AL, MO, NM
[E-mail address deleted as per forum rules. Thanks.]
I have heard that with some changes to HIPAA you might be able to work with a credit specialist on the medical collections.
Hope this helps some.
AMFLENDING.COM
TX, FL, OK, AL, MO, NM
[E-mail address deleted as per forum rules. Thanks.]
mauri, you are likely to be required to pay collections in full prior to closing on a new loan. i don't foresee a slackening in the credit qualifying requirements between now and next year - in fact, i'd not be at all surprised to learn that credit analysis will be much tougher in the near future and continuing.
rates can vary, depending on whether you pay discount points or not, but you can count on current rates falling between 5% or so and on up to 7% or so.
rates can vary, depending on whether you pay discount points or not, but you can count on current rates falling between 5% or so and on up to 7% or so.
