Answers
What is considered a good mortgage rate nowadays?
I understand that it shifts by day, but what is generally considered a realistic average, good, great, and out-of-this-world rate? The situation is: Buyer with FICO of 775, 30 year term with 5-year fixed, no points but closing costs will be there, amount of principle will be 600-650, and amount down will be about 30%. If it matters, I am in California. Thanks!
Best Answer:
wells fargo would give you a rate of about 6.7 on a 30 yr fixed I would stay away from ARMS right now. (I would only put down 20%)
Answers:
Even with a 30% down on $600,000 you're still over the $417,000 and that makes this a Jumbo loan. Jumbo rates are higher than conforming and today on a 28 day lock the rate is about 7.125% with no loan fee. With a 1% loan fee that comes down to 6.625% (the loan fee is a write off on a purchase so it usually makes sense to pay the fe and get both the write off in the first year and the benefiit of the lower rate for as long as you have the loan.
Not sure about all those figures, but I think around 6.5-7 percent is normal/good.
I am a broker in Ca.
Why are you being sold a 5 year ARM?
Can your agent explain why you need to go with an ARM?
Or is it just going to make him more?
With 30% down on a jumbo with those scores and documentable income..........You have access to the best rates available..... you are paying points.....either on the front or in the rate.....don't be fooled by that one.
If you cannot afford the fully amortized payments ( a regular 30 yr fixed) then you risk having to sell in 5 years. YOu should have the equity putting 30% down but why pay these costs again????
Get a 2nd opinion.
Open Book Advisors™
I just ran your loan through the system and you can get a 30 year fixed rate for 6.3% NO Prepayment penalty and no surprises. why get a 5 yr fixed and then a variable rate in a market that may or may not be vulnerable at that moment. send me e mail if you are interested
fabios@bellsouth.net and I can do loans in California FIY
3/1 ARM around 6.375
5/1 ARM around 6.5%
30yr fixed around 6.625%
these rates generally come with 1 origination fee.