Mortgage Rates are cheap!
Results 1 to 14 of 14
  1. #1
    Addict
    Points: 87,482, Level: 92
    Level completed: 2%, Points required for next Level: 1,868
    Overall activity: 6.0%
    Achievements:
    SocialVeteran50000 Experience Points

    Join Date
    Apr 2006
    Location
    Hudson, Iowa
    Posts
    8,150
    Points
    87,482
    Level
    92
    Thumbs Up
    Received: 58
    Given: 69

    Mortgage Rates are cheap!

    We bought a new house last week and I got my financing in order this week. Believe it or not I got a 30 year mortgage locked into today for 4%! I couldn't believe it. When I bought my first house nearly 20 years ago, rates were closer to 7%. When I got my second one 11 years ago it was in the mid 5's. Never dreamed I'd see a rate this low. In addition we did a bridge loan which is essentially a home equity loan on my current house and that rate is 4.25% which isn't too bad either.

    I've always been one to pay things off early, but this is one of those times I wonder if I'm better off not doing so and putting it into the stock market. Probably won't.

    If anybody is thinking of buying something, great time from a rate standpoint.



  2. #2
    Hall-Of-Famer
    Points: 39,201, Level: 61
    Level completed: 12%, Points required for next Level: 1,149
    Overall activity: 6.0%
    Achievements:
    Veteran25000 Experience Points
    tman24's Avatar
    Join Date
    Feb 2008
    Posts
    4,065
    Points
    39,201
    Level
    61
    Thumbs Up
    Received: 21
    Given: 30

    Re: Mortgage Rates are cheap!

    wish i had money to buy a house. dont have 15-20% down.


    Hooray for Metaphors!

  3. #3
    Starter
    Points: 17,569, Level: 40
    Level completed: 40%, Points required for next Level: 481
    Overall activity: 1.0%
    Achievements:
    Veteran10000 Experience Points
    Clone1450's Avatar
    Join Date
    Dec 2008
    Location
    Kansas City
    Posts
    605
    Points
    17,569
    Level
    40
    Thumbs Up
    Received: 7
    Given: 0

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by tman24 View Post
    wish i had money to buy a house. dont have 15-20% down.
    Get an FHA and you don't need that much down... 5-10 will do it.



  4. #4
    Hall-Of-Famer
    Points: 62,938, Level: 77
    Level completed: 81%, Points required for next Level: 312
    Overall activity: 6.0%
    Achievements:
    Veteran50000 Experience Points

    Join Date
    Apr 2008
    Posts
    4,202
    Points
    62,938
    Level
    77
    Thumbs Up
    Received: 178
    Given: 162

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by Clone1450 View Post
    Get an FHA and you don't need that much down... 5-10 will do it.
    FHA is 3.5% minimum down payment.



  5. #5
    Addict
    Points: 83,179, Level: 89
    Level completed: 69%, Points required for next Level: 571
    Overall activity: 2.0%
    Achievements:
    SocialVeteran50000 Experience Points
    ripvdub's Avatar
    Join Date
    Mar 2006
    Location
    Sk-Ankeny
    Posts
    6,904
    Points
    83,179
    Level
    89
    Thumbs Up
    Received: 74
    Given: 246

    Re: Mortgage Rates are cheap!

    We just refinanced and got a 15 year for 3.75%.


    #BEATIOWA

  6. #6
    Hall-Of-Famer
    Points: 39,201, Level: 61
    Level completed: 12%, Points required for next Level: 1,149
    Overall activity: 6.0%
    Achievements:
    Veteran25000 Experience Points
    tman24's Avatar
    Join Date
    Feb 2008
    Posts
    4,065
    Points
    39,201
    Level
    61
    Thumbs Up
    Received: 21
    Given: 30

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by Clone1450 View Post
    Get an FHA and you don't need that much down... 5-10 will do it.
    Quote Originally Posted by CarolinaCy View Post
    FHA is 3.5% minimum down payment.

    What is the interest rate on a FHA tho?


    Hooray for Metaphors!

  7. #7
    Rookie
    Points: 11,517, Level: 32
    Level completed: 39%, Points required for next Level: 433
    Overall activity: 0%
    Achievements:
    Veteran10000 Experience Points

    Join Date
    Jul 2006
    Location
    Ames
    Posts
    352
    Points
    11,517
    Level
    32
    Thumbs Up
    Received: 0
    Given: 0

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by ripvdub View Post
    We just refinanced and got a 15 year for 3.75%.

    I was thinking of doing the same thing, what it cost you to refi.



  8. #8
    Walk On
    Points: 10,665, Level: 31
    Level completed: 17%, Points required for next Level: 585
    Overall activity: 0%
    Achievements:
    SocialVeteran10000 Experience Points
    Warder60's Avatar
    Join Date
    Jun 2006
    Location
    Poulsbo
    Posts
    210
    Points
    10,665
    Level
    31
    Thumbs Up
    Received: 0
    Given: 1

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by tman24 View Post
    What is the interest rate on a FHA tho?
    I just bought my first home. I'm out in Washington so its a bit different market. But I went through and got prequalified on FHA (even though I ended up conventional 20% down).
    Out here, on a first-time buyer (although with pretty excellent credit) FHA was going to be 4.8%

    Conventional I got a bit lower, but not down to 4%, that would be nice!



  9. #9
    Legend
    Points: 210,064, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 23.0%
    Achievements:
    SocialCreated Album picturesVeteran50000 Experience Points

    Join Date
    Oct 2006
    Location
    50131
    Posts
    13,934
    Points
    210,064
    Level
    100
    Thumbs Up
    Received: 451
    Given: 657

    Re: Mortgage Rates are cheap!

    I refinanced to a 20 year just last month and it was 4.5 but that was with no points.



  10. #10
    Hall-Of-Famer
    Points: 62,938, Level: 77
    Level completed: 81%, Points required for next Level: 312
    Overall activity: 6.0%
    Achievements:
    Veteran50000 Experience Points

    Join Date
    Apr 2008
    Posts
    4,202
    Points
    62,938
    Level
    77
    Thumbs Up
    Received: 178
    Given: 162

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by tman24 View Post
    What is the interest rate on a FHA tho?
    We are closing on a house in Sept and locked in an FHA loan last week at 4.25%. I assume lower credit scores might mean higher rates, as with any loan/mortgage.

    Also, since you're putting down less than 20%, you'll have to pay mortgage insurance, which means some of the premium costs are up front, in addition to your closing costs and down payment, and you will have a monthly charge too.


    Last edited by CarolinaCy; 08-21-2010 at 12:05 AM.

  11. #11
    All-Star
    Points: 18,286, Level: 41
    Level completed: 27%, Points required for next Level: 664
    Overall activity: 0%
    Achievements:
    10000 Experience PointsVeteran
    Three4Cy's Avatar
    Join Date
    Jan 2010
    Location
    West Des Moines
    Posts
    1,915
    Points
    18,286
    Level
    41
    Thumbs Up
    Received: 19
    Given: 32

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by CarolinaCy View Post
    We are closing on a house in Sept and locked in an FHA loan last week at 4.25%. I assume lower credit scores might mean higher rates, as with any loan/mortgage.

    Also, since you're putting down less than 20%, you'll have to pay mortgage insurance, which means some of the premium costs are up front, in addition to your closing costs and down payment, and you will have a monthly charge too.
    FHA loans have what's called a Mortgage Insurance Premium (MIP). You pay the Upfront costs at time of closing on the loan, which is 2.25% of the loan value. Then you pay it monthly as part of your payment. It will drop off when the Loan to Value on your home is 78% or less, or you refinance into a conventional loan. If your seller is paying closing costs, this can be applied to the Upfront MI charge to help reduce it. The Upfront MIP is often scary for buyers because it is a pretty decent sized charge to pay at closing.

    FHA now requires a minimum 580 credit score, but a lot of lenders go above and beyond and require a higher score. You need to check with your lender on credit score requirements. And yes, mortgage pricing is based on risk, so a lower credit score indicates a higher risk, so higher interest rates.



  12. #12
    Speechless
    Points: 735,016, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 34.0%
    Achievements:
    SocialVeteranCreated Album pictures50000 Experience PointsOverdrive
    Cyclonepride's Avatar
    Join Date
    Apr 2006
    Location
    A pineapple under the sea
    Posts
    49,085
    Points
    735,016
    Level
    100
    Thumbs Up
    Received: 2,190
    Given: 1,041

    Re: Mortgage Rates are cheap!

    I've got two houses right now. Guess I'm pretty lucky



  13. #13
    Speechless
    Points: 454,613, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 14.0%
    Achievements:
    SocialRecommendation Second ClassVeteran50000 Experience PointsOverdrive
    brianhos's Avatar
    Join Date
    Jun 2006
    Location
    Trenchtown
    Posts
    39,934
    Points
    454,613
    Level
    100
    Thumbs Up
    Received: 392
    Given: 49

    Re: Mortgage Rates are cheap!

    If I could actually sell my current house I would probably be looking at making a big upgrade, but that is the last thing I want to try and do right now.


    They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety. - Benjamin Franklin 1775

  14. #14
    Addict
    Points: 87,482, Level: 92
    Level completed: 2%, Points required for next Level: 1,868
    Overall activity: 6.0%
    Achievements:
    SocialVeteran50000 Experience Points

    Join Date
    Apr 2006
    Location
    Hudson, Iowa
    Posts
    8,150
    Points
    87,482
    Level
    92
    Thumbs Up
    Received: 58
    Given: 69

    Re: Mortgage Rates are cheap!

    Quote Originally Posted by brianhos View Post
    If I could actually sell my current house I would probably be looking at making a big upgrade, but that is the last thing I want to try and do right now.
    Yeah we're faced with selling our current house now which is somewhat worrisome. It's paid for, so that helps. We won't be stretched from a cash flow standpoint with the new payments. Am looking forward to to rolling the cash into the new loan however.

    We're interviewing several good real estate agents and am confident a good one helps(I happen to have my real estate license too).



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
  • TV: Cyclones.tv
  • HOOPS: Iowa State vs. Mississippi Valley State
  • December 31, 2014
  • 06:00 PM