Financing in San Jose>Question Details

Jamie, Home Buyer in San Jose, CA

I got quoted 5.5% with .625 points or 5% with 1.5 points on an FHA loan. I was expecting lower. Is this high?

Asked by Jamie, San Jose, CA Wed Jan 21, 2009

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7
That does seem to be little high. I would get a couple of more quotes and see what's available.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes Thank Flag Link Wed Jan 21, 2009
Hi Jamie,
Bear in mind that as a lender, we get about four price quotes a day. While this seems a little high to me, give it the benefit of the doubt that it was the high quote of the day. FHA and VA loans are my speciality. I suggest that you work with someone who is up to date with all of the new FHA programs in order to make the best informed decision.

Good luck and find the right house for you!
Shirley Haddix 408-690-2607
0 votes Thank Flag Link Wed Jan 21, 2009
Hi Jamie,
Keep in mind that you are financing 96.5% of the house. In today's credit market, FHA is the only lender who is lending at that level.
It is important that you have both a great lender & realtor to guide you through this process. It is different than traditional financing, and everyone has to stay on top of the game!

Congrats, and happy house hunting!
Linda Baker
408.712.3432
0 votes Thank Flag Link Wed Jan 21, 2009
Jamie,
The quotes are in reasonable range but may not be as good as you can get if you are buying a home.
As an FHA Purchaser you can negotiate up to 6% back from the seller. This can take care of all your normal closing costs plus being used to "Buy Down" your interest rate.
If buying you need to working with a Realtor familiar with all aspects of FHA offers. The way the contract is written is critical to obtaining the desired result.
Good Luck,
Bill
0 votes Thank Flag Link Wed Jan 21, 2009
I have 5% with 1 point on the FHA and 4.875% with the same .625 point on the Conventional loan. 5.5% would have no points. Of course I don't know what your credit score is or your Loan-To-Value but that should be fairly accurate.

If I can be of any assistance, please let me know.
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Apply Online: flagstarloans.com/lallison
0 votes Thank Flag Link Wed Jan 21, 2009
Hi Jamie, this is really a question that requires knowing so much more information. I'm a Mortgage Banker/Broker; however, I don't do FHA (Federal rules prohibit an FHA loan agent from deriving income from other Real Estate activities - I'm also a Realtor)

To give you an idea of the level of information needed to answer your question see the "Are You Setting Yourself Up?" section on page 2 of this document:
http://docs.Steven-Anthony.com/RateShopping-DoItRight.pdf

I can refer you to another top-notch FHA loan agent if you like...

Best, Steve
0 votes Thank Flag Link Wed Jan 21, 2009
Depends on your credit score. All in all these are actually great rates. I have great credit and went with FHA about a week prior to the interest rates dropping and got stuck with 6.25 :(
0 votes Thank Flag Link Wed Jan 21, 2009
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