Financing in 34698>Question Details

Maria, Both Buyer and Seller in Florida


Asked by Maria, Florida Tue Feb 3, 2009

I have been shoping around for a FHA refinance loan. My score is 587. So far I have received an interest rate of 6.5% with a monthly payment of $800.00. My initial loan was with a hard money lender. The broker who did my first loan says I can get a interest rate at 4.5% and that I should shop around. Is it possible to get a interst only loan so I can lower my monthly payments. Right now I`am paying $650.00 per month.

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No, to the interest only question. And the info by your first broker is correct; you should be able to get a interest loan rate between 4.5% and 5.5% timing is everything and rates change. It appears rates will be low for at least 6-9 months. We do FHA loans Statewide in Florida for major national lenders and local banks and will offer a free second opinion at no cost or obligation.
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1 vote Thank Flag Link Tue Feb 3, 2009
As a seasoned Florida mortgage loan officer, I have expertise in every area of mortgage lending, I am dedicated to finding the right mortgage program.

Please do not hesitate to contact me.
0 votes Thank Flag Link Fri Oct 9, 2009
Let me disclose that I am a mortgage banker. My question is this, if your broker told you can get a rate of 4.5% what are you shopping for? Tell him to get you the rate.

Go with him and get the deal done.

The truth is he can't. With pricing and policy changes you may be in the best mortgage you qualify to get at 6.5%. To be sure you can go to my website and get live rates 24/7. Let me know if you have any questions.
0 votes Thank Flag Link Tue Feb 3, 2009
Most lenders need a 600 score. Under 600 lender are hitting the rate pretty hard. Watch out for high closing costs and up front points, especially lenders telling you you can get into the 4's and low 5's.
0 votes Thank Flag Link Tue Feb 3, 2009
FHA does not offer interest only loans, and with FHA and your credit score, rates should be at 5.25-5.75%.

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

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
0 votes Thank Flag Link Tue Feb 3, 2009
I'm not a lender, Maria, but I can tell you that if your score is under 600 and you are being offered interest rates under 7% that is excellent. In reading your question, my question to you would be: What is most important to you about lowering your monthly payment? If the answer is "saving money", or something to that effect - how would you know if you were, in fact, actually saving money? An interest-only loan is just like paying rent, only you are still responsible for the upkeep and maintenance on the property!

Sometimes a traditional lender, and most especially a hard-money lender will not take the time to ask the kinds of probing, important questions which will help you to make the right decisions with your finances. I recommend that you try to get some good advice from someone you truly trust, someone who will take the time to ask important questions.

If you do not know someone you can trust, contact me and I would be happy to introduce you to someone!
0 votes Thank Flag Link Tue Feb 3, 2009
My name is Leslie Kaye. I am a loan expert, I originate loans. I work with clients like yourself.
Every day the lenders are changing their guidelines. Some FHA lenders are either giving you
dings for a score of 587 or will not do a loan with a score under 620. I help my borrowers up
their credit scores to get the better rate. This is for purchases and refinances. Please do
not hesitate to ask me for help. It would be my pleasure to make sure you get the right
loan at the right rate, so you don't need to worry any longer. Please refer to my website.
Thank you, Leslie Kaye Atlantic Mortgage Loans, INC.
0 votes Thank Flag Link Tue Feb 3, 2009
Lynn is right, interest only loans are a thing of the past. FHA has credit score hits for scores in your range thats why your rate is higher than other folks with better credit.

I would see if you can get you score up a little, if not you will be stuck in the high 6% range
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0 votes Thank Flag Link Tue Feb 3, 2009
Interest only loans are "thing of past". Interest rates are determined by credit scores, debt ratio, minimum downpayment for 3.5% or more. Hard money lenders charge a higher interest rates than a conventional lender.
Web Reference:
0 votes Thank Flag Link Tue Feb 3, 2009
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