Financing in 53719>Question Details

Timothy Cole, Home Buyer in Madison, WI

FHA Loan Rates

Asked by Timothy Cole, Madison, WI Tue Dec 9, 2008

I am currently in the application process for a 30yr FHA loan. I've been looking around the internet at different rates and I've seen them as low as 5.8%. Back in late November my loan started at 6.5% and shortly thereafter my broker locked me in at a 6.0% loan. Do these numbers sound about right? Are the numbers that I am seeing on the internet completely idealistic? Thanks for the help!

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It will depend upon your down payment, credit score and so forth. Often times with a lower down payment your interest rate will be a touch higher. Shop local banks as you have no idea what the lenders online are doing. A little face to face is good and always look at 3 different lenders. Maybe Anchor, M&I and Wisconsin Community Bank? Hope this helps.
0 votes Thank Flag Link Wed Dec 10, 2008
When are you going to close? If you are shop rates you need determine new lender can close on time or you may have penalty charged for not closing or loss of escrow money. Careful in wanting to swap lenders, yes interest rates COULD be low depends on your overall financial folder, credit score, debt ratio, down payment is taken inconsideration.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Dec 9, 2008
Luke is right. The only shot is to ask your broker to switch lenders. This way it starts as a new loan and can be locked on todays pricing!


Good Luck!
Web Reference: http://www.myallied.net
0 votes Thank Flag Link Tue Dec 9, 2008
Well, I can actually tell you that rates are currently closer to 5.25 and 5.5 than they are 5.8 - depending on your credit score. Your broker might have their hands tied because whatever lender they have you locked at 6.00% with, you are not going to be able to reduce it. You need your broker to either switch lenders for you or you need to find a new mortgage person. Since you must be on title to a home for 12 months to refi an FHA mortgage, I would seriously tell you that now is the time to do this because it will take you so long to refi the loan.

If you have any questions on your loan or if you would like another price quote for your scenario, I'll be glad to help you. You can send me an email with your credit score and loan amount and I'll price it our for you through my bank. It might help you at least a better informed decision.

Thanks
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com
0 votes Thank Flag Link Tue Dec 9, 2008
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