Posted on: 22nd Jun, 2010 07:24 pm
I just received my truth in lending. My APR is 5.97, Finance Charge is 227, 930, Amount Financed 199, 285. Doesn't the finance charge seem high? Also, my Initial Interest Rate is 5.25. Doesn't this all seem legit? Or should I shop around for a better rate?
Well you have not really given enough information to give you an informed answer, but I can tell that it's an FHA loan that you have and the APR is appropriate for the 5.25% rate. Now, as for that being a good rate for FHA, I'd say absolutely not unless there is something really odd about your situation. Unless your credit score is 580 to 619, I see no reason you should have a 5.25% rate. Shop around more!
My FICO is over 619 (barely) and it's a 203k FHA. We're financing 199,285 and the payment is going to be $1186-before taxes and insurance. I thought the payment would be lower.
What state are you in?
CO
Google Nic Netherton and see if he can help you. On a 203K, I'm not sure what rate you should have in CO, but he will know and be able to assist you. the APR is correct for the 5.25% however.
So does that mean the lender's fees seem reasonable?
I cannot comment on that because I don't originate FHA 203K. If it was a 203b, it would be outrageous, that's why I think you should ask the Colorado broker I referred you to. He will be straight with you and tell you if what you have is good or if you can do better. All I was saying is that the APR is typical for that note rate.
andreac_95
rather than shopping now i will advice you to concentrate on increasing your credit score and then (may be after 1-1.5 yr) refinance the loan with more lucrative terms.
rather than shopping now i will advice you to concentrate on increasing your credit score and then (may be after 1-1.5 yr) refinance the loan with more lucrative terms.