Just wondering how to evaluate a mortgage interest rate (15 year, fixed rate). What would be the best interest rate someone with a credit score of 800+ could expect now?
It would also depend on where the house is located and whether the loan is a jumbo.
It’s not just your score - pricing engines also consider your state, if it is primary residence or investment property, single family home or condo, and the loan-to-value - meaning are you borrowing 50% of the property value or 90%?
Go to a site like bankrate.com and put in your info. You should be able to find a 15 year fixed in the 2.75% - 3.25% range depending on the factors I listed above. Don’t forget it’s not just the rate - I’m assuming no points and reasonable closing costs.
That’s interesting. This is for my nephew and his wife - they live in Texas, their down payment will be 20 percent and the house is in the neighborhood of $200,000. Single family home to be their primary residence. New construction, 4 bedrooms, 2.5 baths, good school district . . .
Edited to add - mostly I posted because I am curious if their interest rate–which is 3.75%–is good/very good/not so good. We paid off our mortgage some years ago but it’s definitely better than our rate was.
This rate is not competitive for 15 years fixed. Try these people - I had mortgages with them for years. This is not a broker. https://www.provident.com/
My credit score is in the mid-700s and one quote is for 3.5% (waiting on some others). Similar housing stats to your nephew but in Michigan.
OP here with a mea culpa correction – the 3.75% was for a 30-year loan. The rate offered for a 15-year loan was 2.87%. Sorry about the mix-up (that’s what happens when you get data third-hand).
One more mortgage question (just because I am curious): my nephew was in the process of getting pre-approved for the loan even though the house will not be completed until September. Since the rate is only locked in for some amount of time less than 5 months, how does that work? Does the mortgage company pull your credit score now, and then once again in three or fours months?
Generally documentation is good for 90 days. So, employment woukd be re-verified, updated asset stmts and paystubs requested, fresh credit report pulled, etc. It’s really important not to incur new debt or open new credit during this process - it will raise qualification issues and could cause a delay.
How many points up front, if any? Other fees? What is the A.P.R.?
I am going to get 30 year fixed @3.63., no point. It’s a jumpo coop loan.
rockvillemom is right, all credit/employment verification is good for 90 days. Pre-qualification is not a guarantee of qualification. Most of the time they will pull your credit and ask for your bank statements again 1 month prior to closing.