Financing in Eagle Mountain>Question Details

Lauren, Home Buyer in Provo, UT

What is a decent interest rate for a USDA loan?

Asked by Lauren, Provo, UT Wed Dec 14, 2011

We're in Utah County, UT. At a score of 621? 640? I had a lender quote 4.85% today with a score at 621. Is that a pretty high rate? I was quoted 4.0 on an FHA, but would prefer USDA.

Also, is it true that our credit won't go down when these lenders pull our information to give us quotes?

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Lauren,

I answered your previous question by referring you to Jacinda Montano in Eagle Mountain. She is awesome! Her number is 801-847-5810. I also specialize in Eagle Mountain and Saratoga Springs real estate and would love to help you find a home! Please let me know if you need any help!

Kristi Hutchings,
@Home Realty Network
801-362-2080
Kristih@homerealty.com
Web Reference: http://wendykteam.com
0 votes Thank Flag Link Thu Dec 15, 2011
And I really recommend the Wendy K Team and mortgage broker Jacinda Montano!!
0 votes Thank Flag Link Fri Jul 19, 2013
Thanks Josh. We actually closed on a house a month after I posted this question will a 3.75% interest rate.
0 votes Thank Flag Link Fri Jul 19, 2013
Today rates are really good. It just depends on the amount you are looking for, what your job is, and looking at the credit score.
0 votes Thank Flag Link Fri Jul 19, 2013
Hi Lauren,

As Lauren had mentioned there is a lot more that goes into determining an interest rate than just "getting a quote". Regardless of what you've been quoted I'd suggest getting a second opinion. At initial glance the rate you've been quoted does seem very high. I to am closing USDA loans in the high 3's right now.

Some of the follow up questions I'd want to ask would be, Are you purchasing or refinancing? Is the seller paying your closing costs? Are you working with a Realtor? How did you find the lender which you received your quote from? How long ago did you receive this quote?

Please try to understand there is a big difference between a "good" lender and a "great" lender. In this market you can't afford to be working with someone who is there to just take your loan application and give you a "quote". You truly need to know what all of your options are so you can make the best financial decision for you and your family. Both Lauren and Elliot have given you great advice. I too would like to apply for being your go to mortgage professional. I'm sure any one of the three of us will lead you in the right direction.

In regards to credit, years ago I was a credit counselor. I understand credit and how it works better than most. I've included a link to a presentation I'd put together for my clients.

To keep it simple the first 10 inquiries could lower your scores anywhere from 0 - 50 points when your applying for any credit other than a mortgage or an Auto Loan. When you apply for an auto loan or a mortgage you can have it pulled as many times as needed within a 30 - 45 day window and not be affected. Although I wouldn't suggest having it pulled that many times.

Give me a call if you'd like to learn more information.

Thanks,

Mark P. Moyes
Associate Lending Manager
NMLS# 267431
801-999-0886
0 votes Thank Flag Link Thu Dec 15, 2011
That sounds a bit high but it may be because your lender is trying to give you a large credit to apply towards your closing costs. You read about how that works here: http://www.trulia.com/blog/elliott_r_oliva/2011/09/how_to_pi…
0 votes Thank Flag Link Thu Dec 15, 2011
Lauren,

It would be very difficult to quote you a rate without knowing your situation but I am currently closing USDA customers in the low 4's and high 3's. If you would like, I can certainly look into your situation and let you know where you stand.

When Lenders pull your credit you will have an inquiry on your credit report - the impact will be minimal, but you don't want 10 Lenders accesing your credit. Here is a link to Download my consumer credit handbook - it is a quick but informative read: http://www.allaboutnews.com/userpdfs/justinCol73158.pdf

Visit my Blog and you will find many articles regarding your credit score - if you would like to chat please feel free to reach out - jcoleman@snational.com
0 votes Thank Flag Link Thu Dec 15, 2011
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