I know this is an old post, but are you still looking for help with a mortgage? If you're interested in looking at today's interest rates, programs, and payment scenarios, please let me know as I know a number of reputable lenders in the area.
Best of luck to you!
The answer is two years old! I think you have your answers but it would be nice to know what the correct interest rates were 2 years ago. About 5.75% I think.
Not sure what happened here.
Anyway Good luck!
The interest rates that are quoted are usually the lowest rates and are only factual to someone with stellar credit. The lower your credit score the higher that quoted interest rate will be proportional to the risk the lender feels they are taking in lending you money for your purchase.
A better way to shop for loans and/or decide if now is an affordable time for you to purchase a new home would include: discount points, origination fee, pre-payment penalties, and any other fees the lender discloses are charged to you.
If you will do FHA financing the fees quoted by the lender on the Good Faith Estimate have a ZERO TOLERANCE, meaning they cannot change. One of those fees would be transfer tax. Keep these things on a list in front of you when speaking with lenders and compile a longer list as you hear fees they mention that you didn't know about. Ask them to explain the fees and if you have options with the fees, such as insurance, you can shop for you own insurance in most cases.
Also, you can check you credit free online annually from all three credit bureaus at http://www.AnnualCreditReport.com
You may want to go to MyFico.com and for a a small fee, get a sense of what YOUR interest rate might be given your current FICO score (Fair Issac Corporation) - and what type of mortgage instrument might work best for you. Pulling your credit report on MyFico.com will not reduce your score (as it often does when a lender pulls your credit).
MyFico.com also offers advice on things you can do the help improve your credit score to get a better mortgage rate and it monitors it for you.
You can always seek out a bona-fide lender who can also help you with your question(s).
Best back sit down with a bank or broker.
Best of luck and good question.
"The Real Estate Doctor"