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Started By
Message
70k Loan at 6%
Posted on 5/19/11 at 1:44 pm
Posted on 5/19/11 at 1:44 pm
I just got prequal for my first home. It's a FHA loan for 70,000 and the loan agent quoted me a 6% rate. Does this sound right? My credit score is 746 and I'm the only borrower on the loan. I wasn't expecting a great rate with such a small loan but not 6%.
4
Posted on 5/19/11 at 1:45 pm to GAFF
Thats like $4,200 a year. Not exactly breaking the bank.
Posted on 5/19/11 at 1:58 pm to John Merlyn
quote:
Thats like $4,200 a year. Not exactly breaking the bank.
regardless, at 30 years thats shitty. I didn't think the loan amount had much to do with it.
Posted on 5/19/11 at 2:06 pm to barry
15 year loan is the only way to do it. As stated in another recent thread, the bank doesn't make nearly as much money off a small loan so they don't have as much of an incentive to do the deal (Thus the higher rate).
Posted on 5/19/11 at 3:50 pm to GAFF
shop around, you should still be able to get under 5%. at first glance, my credit union is offering 4.875% for a 30 yr, and 4% for a 15 yr.
Posted on 5/19/11 at 4:19 pm to Lou
Winner..... I sell houses FHA is 4.875 right now. You should also look in to USDA rural loans.
Posted on 5/19/11 at 5:03 pm to Franktowntiger7
I just locked FHA at 4.5%
Posted on 5/20/11 at 6:57 am to NickyT
Anything over 5% is a ripoff IMO
Posted on 5/20/11 at 11:59 am to GAFF
Small loan size has some effect but not that much. For FHA, under 5% is still possible with that loan amount. Now, if you get much lower, you may have trouble. There is not much money in a $50k or less loan so most lenders won't do them. Some banks will but at much higher rates.
Posted on 5/21/11 at 11:57 am to GAFF
If you can qualify for just $5K more at 75K my pricing shows 4.5% at 0 points (no discount or origination). Priced at 5% you'd actually get a borrower credit of 3.5% which would basically wipe out most closing costs and much of your prepaids (tax and insurance escrow setup).
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