Answers
What is a good interest rate on a mortgage?
Ok my grandmother is going to cosign for a mortgage for me and my wife. the cost would be 40000 for the home. What is a good interest rate to accept our credit is bad, but hers is around 675-700 what should we be looking for?
Best Answer:
Her FICO is low too so you may get a high rate. 6% is good if you have good credit now but you may end up with 8-9%. Make sure you can afford the payments and don't ruin granny's credit.
Answers:
Many factors come into play when determining the interest rate you will get for the type of real estate you are purchasing and the amount of money your putting down. Basically the less risk associated with the real estate and credit history the better rate you will get. FHA loans insure the lender against default by the purchaser. If your buying a home FHA is the way to go. Contact us for more information.
anywhere between 5 and 7
$40,000? That should be a down payment. Try saving up for a real house that can appreciate in value, instead of one that will blow away in the next breezy spring day.
If her credit is good then let her buy the house for you and later when you have paid for 24 months using your own checks (they must be checks made out to the company) then she can refinance the property into your name otherwise you are looking at a high rate of 10.50% or worse. Without knowing your score I am assuming it is below 580. If not then you should ask your broker to get you approved FHA and do it on your own and let grandma give you a gift. FHA rates are low.
With credit scores of 680 and above on 400k with 20% down, as of Monday November 12, 2007, you could get 5.875.
Interest rate assumes a minimum credit score of 680, a maximum loan amount of $417,000 with a loan to value (LTV) of 80% or less on a primary residence. Rate and terms may vary depending on your credit history and other qualifications, amount of equity in the property, location, and type of property, and other factors. Rates are subject to change without notice and may not be available in all states. This is not an offer to lend.
If you don't have 20% down you can get 6.375% with a 640 FICO 100% financing.
Interest rate assumes a minimum credit score of 640, a maximum loan amount of $417,000 with a loan to value (LTV) of 100% or less on a primary residence. Rate and terms may vary depending on your credit history and other qualifications, amount of equity in the property, location, and type of property, and other factors. Rates are subject to change without notice and may not be available in all states. This is not an offer to lend.