Posted on: 25th Apr, 2012 11:07 am
Thanks for reading my post. My wife and I are building a house this year. We just applied for our construction loan of $110,000. Our final mortgage will not be more than this. My credit score is 689 and her's is 650. Together, we make about $77,000 per year. I asked my banker to give me a quote on what our monthly mortgage payment would be if we did the permanent loan today. Just so I could get an idea. She said our credit scores would get us a 6.5% rate for a Fannie Mae loan. That plus the escrow for taxes and insurance would equal a monthly payment of about $850.00. But to me, that's rediculous. I was hoping for a payment in the $600 range (including escrow). There has to be somewhere in this world that I can get a mortgage with a low interest rate. Can anyone help? We want a 30 year fixed. Thanks so much for your time.
Hi isaac_south!
Welcome to forums!
As your credit scores are mediocre, you may have to pay a high interest rate. Nevertheless, I will suggest you to shop around a bit and check out if you can qualify for a further lower interest rate. You can apply for FHA loans and they may come at a low interest rate.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As your credit scores are mediocre, you may have to pay a high interest rate. Nevertheless, I will suggest you to shop around a bit and check out if you can qualify for a further lower interest rate. You can apply for FHA loans and they may come at a low interest rate.
Feel free to ask if you've further queries.
Sussane
Hi isaac_south,
This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out what type of rates and terms you may qualify for.
Thanks
This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out what type of rates and terms you may qualify for.
Thanks
I agree that you need to shop around a bit and check out if you can qualify for a further lower interest rate.
To have a $110,000 mortgage with a monthly principal and interest payment of $445 (escrows are $155 according to your total payment of $850 at a 6.500% rate.) would be a rate of 2.68%.
There has never, ever, been a 30 year fixed rate at 2.68%.
Some adjustable rate mortgages have been that low, but, if your rate is going to starrt adjusting in 5 years, you are better off with a low rate 30 fixed mortgage for 30 years.
15 Year Fixed loans have been down around 3.00% to 3.250%, but, then your monthly payment would be about $930
A 30 year ixed rate should be lower than 6.500%, unless the loan amount of $110,000 divided by the appraised value is over 80% of the value. Then you would need private mortgage insurance and maybe the rate of 6.500% includes lender paid mortgage insurance.
When the house is completed, what will the appraised value be?
There has never, ever, been a 30 year fixed rate at 2.68%.
Some adjustable rate mortgages have been that low, but, if your rate is going to starrt adjusting in 5 years, you are better off with a low rate 30 fixed mortgage for 30 years.
15 Year Fixed loans have been down around 3.00% to 3.250%, but, then your monthly payment would be about $930
A 30 year ixed rate should be lower than 6.500%, unless the loan amount of $110,000 divided by the appraised value is over 80% of the value. Then you would need private mortgage insurance and maybe the rate of 6.500% includes lender paid mortgage insurance.
When the house is completed, what will the appraised value be?
