Other benefits of using HomePath lending - no FHA required repairs, no appraisal and they will often give you 3.5% towards recurring and non-recurring closing costs (you have to ask for this in the offer). Also, you CAN buy a Fannie Mae home with an FHA home, as long as it qualifies. There is no requirement to use Home Path.
Now, if you want to use HomePath and save the monthly MI charge (which assuming you are buying a $380K home, adds $349 per month to your payment) and the pre-paid MI (which on the same home would add $3,667 in up front costs, which can be added to your mortgage), then you might want to change lender's.
Call Chris Fenoglio at MetLife Home Loans. Their current rate for HomePath (eff Friday) is 4.625% with 5% down, at no points on a single family home. He is local and can be reached at 562-799-5799 (office), email@example.com (e-mail), or 714-206-0990 (cell). I have several clients who have used him and are all extremely satisfied. He will give you a straight answer and will actually close the loan he talks to you about at the rate and cost he gives you. Good Luck, go get that house, and Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
If you like my answer, thumbs up and best answer me, thanks
This way you will understand the differences and which is best for you.
Best of luck
The rate depends on several factors
Your Credit, assets, work history
The type of Loan - Guess what, they are not alike
Your Lender - Guess again, they are not the same
This is why EVERYONE should get PRE APPROVED for a loan PRIOR to looking at homes.
You would never have this question if you were pre approved before you looked.
Agents like myself, make sure you are pre approved so you are confident in what you are buying.
This question should be asked of your Loan Officer.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992
For example, we just bought a home recently and the 30 yr fixed rate was about 5 percent, but we got a 7 yr fixed (30 year loan, just fixed rate for 7 years) at 3.85%.
Whether or not it makes sense for you to get a 30 yr fixed loan depends upon your situation. We decided to go shorter term because we have never lived in a home more than 5 years and would save about $60K in interest versus the 30 year loan.
And as stated below, rates are affected by several factors - income, debt, credit score, etc...
Lance King/Owner-Managing Broker
Typically Fannie Mae financing does not offer higher interest rates. Financing terms are based on your whole credit package and credit worthiness. The lowest rates are usually offered to the borrowers with the best credit. You have the option to interview several lenders to find the best financing terms.
Prudential California Realty
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group