Home Buying in Union>Question Details

Andrew Thomp…, Home Owner in Union, NJ

OK so we switched to a 5% down conventional loan, paying the PMI insurance up front. From our previous 3.5% scenario we are saving about $300/month.

Asked by Andrew Thompson, Union, NJ Tue Oct 29, 2013

Current mortgage interest rate is 4.2% but bank is charging us 4.5% citing credit score of 689. Does this make sense?

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Yes, most lenders I work with would tell you that under 680 credit is unable to get a loan and at 689, you are on the bubble so a slight increase to switch to conventional from FHA would be expected. In the long run getting out of paying PMI for the life of the loan, the 0.3% extra is way better than $300 a month for 30 years.
1 vote Thank Flag Link Tue Oct 29, 2013
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