Financing in Philadelphia>Question Details

Edtheia Moses, Home Buyer in Philadelphia, PA

Is 3.980 a high or low interest rate for a home?

Asked by Edtheia Moses, Philadelphia, PA Wed Jan 25, 2012

Help the community by answering this question:


Hi Edtheia,

Yes, that is a very good rate for a 30 yr fixed rate loan. Rates are currently at historic lows. I'm completing settlement on a property next Monday, and the Buyers locked in a 30 yr fixed rate of 3.875%.

May I suggest you call Edward Dubinsky at 215-808-5353. He is a Senior Loan Officer who can answer all your financing related questions.

You've probably seen my other answers to you on Trulia. I'm always available to you if you have any real estate related questions. Looking forward to speaking with you soon.

All the best,
Larry Lichtman
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell/Text: (267) 254-7994
2 votes Thank Flag Link Wed Jan 25, 2012
Short answer: A low interest rate. It's good.

Long answer: It also depends on other factors. It's very good for a 30-year fixed rate. It's OK for a 15-year fixed rate. I received a rate sheet yesterday, for instance, showing a rate of 4.0%, no points, for a 30-year fixed and 3.25%, no points, for a 15-year fixed. Now, rates vary by lender. They also vary based on your credit scores. And they vary depending on the points you may pay--the more points you pay, the lower the stated interest rate.

Bottom line, though: If you can get financing at under 4%, go for it.

Hope that helps.
1 vote Thank Flag Link Wed Jan 25, 2012
Don Tepper, Real Estate Pro in Burke, VA
You should know that 3.98 is a very good rate, but there are a lot of other details you need to know:
Is your Mortgage Officer "buying down the rate"?
Is that a variable interest rate, due to be stepped up in 2 to 5 years?
How much are putting down?
How much are your fees?
Is there a "balloon"?

You Lender should have given you a GFE; Good Faith Estimate, which lists all the fees and expenses. This will show you what you paying for what. You should have a professional look at it, possibly another Loan Officer for a comparative loan.

Good luck and may God bless
1 vote Thank Flag Link Wed Jan 25, 2012
low! although it also depends on what type of loan.. FHA loans tend to have higher interest rates than Conventional loans, for example... but 3.98, yes definitely
0 votes Thank Flag Link Wed Jan 25, 2012
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