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360 57 September 13, 2017 at 09:50 PM
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i have been offered 3.5% for 30 year fixed with 5% down. i have 740+ credit score.is that a good? how much u got?

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#2
I literally just closed on a house today and have a 3.375% (could've had a 2.75% rate if we closed about 6-9 months ago) rate with 5% down. My wife works at a bank and gets a half point discount on the rate... anyhow the guy (not sure what his professional title is) that made us sign paperwork said he hasn't seen any mortgage rates in the 3's in quite some time. Based on that I think you're doing pretty good.... but I know nothing about rates.
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#3
Quote from ryan7979
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I literally just closed on a house today and have a 3.375% (could've had a 2.75% rate if we closed about 6-9 months ago) rate with 5% down. My wife works at a bank and gets a half point discount on the rate... anyhow the guy (not sure what his professional title is) that made us sign paperwork said he hasn't seen any mortgage rates in the 3's in quite some time. Based on that I think you're doing pretty good.... but I know nothing about rates.
thanks. so without discount point u should 3.8% range. in that case i guess i am getting good rate.
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#4
slightly off topic... at 5% down, what is the PMI that you are paying? I have heard it is sky high these days at lower down payment contributions

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just found the answer for FHA loans:

Two mortgage insurance premiums are required on all FHA loans: The upfront premium is 1.75 percent of the loan amount -- $1,750 for a $100,000 loan. This upfront premium is paid when the borrower gets the loan. It can be financed as part of the loan amount.

The second is called the annual premium, although it is paid monthly. It varies based on the length of the loan, the loan amount and the initial loan-to-value ratio, or LTV. The following premiums are for loans of $625,500 or less.

Annual premiums for FHA loans
30-year loan, down payment (or equity) of less than 5 percent: 0.85 percent
30-year loan, down payment (or equity) of 5 percent or more: 0.80 percent
15-year loan, down payment (or equity) of less than 10 percent: 0.70 percent
15-year loan, down payment (or equity) of 10 percent or more: 0.45 percent
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Last edited by macb September 14, 2017 at 06:19 AM.
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#5
Quote from macb
:
slightly off topic... at 5% down, what is the PMI that you are paying? I have heard it is sky high these days at lower down payment contributions

--

just found the answer for FHA loans:

Two mortgage insurance premiums are required on all FHA loans: The upfront premium is 1.75 percent of the loan amount -- $1,750 for a $100,000 loan. This upfront premium is paid when the borrower gets the loan. It can be financed as part of the loan amount.

The second is called the annual premium, although it is paid monthly. It varies based on the length of the loan, the loan amount and the initial loan-to-value ratio, or LTV. The following premiums are for loans of $625,500 or less.

Annual premiums for FHA loans
30-year loan, down payment (or equity) of less than 5 percent: 0.85 percent
30-year loan, down payment (or equity) of 5 percent or more: 0.80 percent
15-year loan, down payment (or equity) of less than 10 percent: 0.70 percent
15-year loan, down payment (or equity) of 10 percent or more: 0.45 percent
I will be paying $107 per month
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#6
5% down..hmm got a feeling were gonna have a correction soon 2008 redux just not as bad
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#7
I got 3.8%, be closed in 3 weeks.
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#8
I got 3.875% from Chase bank with no Closing Fees. Which bank offer 3.5% ??
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Quote from heartshacker
:
i have been offered 3.5% for 30 year fixed with 5% down. i have 740+ credit score.is that a good? how much u got?
That's extremely good. In fact, I almost wonder if there's a catch, although it's not entirely unbelievable, either. Are you paying extra for "points" or anything?

We refinanced in March of 2016 (30 year, with >20% equity) at 3.625% with closing costs covered by the bank and that was near the very bottom of historic rates and from a dirt cheap online brokerage. I thought they'd come up some since then for sure.

Bottomline, yes, 3.5% is incredibly good for a 30 year loan.
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Quote from aaba78
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5% down..hmm got a feeling were gonna have a correction soon 2008 redux just not as bad
5% isn't necessarily horrendous for the economy -- it's the zero documentation loans and ARMs that killed people.
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#11
Are you all discussing FHA loans (as conventional rates are not currently 3.50%).?

The rate means NOTHING without correlating the costs associated with that rate.
Plus, while contrary to our standard thinking, the lowest rate is not always the best rate once you compare costs associated with that rate compared to another rate with less costs or even a lender rate credit (with which FHA can be very generous and a slightly higher rate can provide a lender credit towards costs).

With FHA 3.50% is readily available, but also compare the costs of that rate (and I am not just referring to 'zero points', Slickdealers are smarter than that) to a slightly higher rate where a rate credit is given. Compare the difference in monthly payments and do the math. (Most of my FHA clients with credit >660 are choosing 3.75-3.875% with a nice lender credit as it makes more sense.)

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In respect to Mortgage Insurance, with FHA the MI is a fixed calculation using .80 or .85 , divided by 12) depending on whether the loan is up to 95% or above 95%. There is also an up front MI of 1.75% which customarily is financed into the loan amount.

IF you have high credit scores (720+) I highly recommend you compare FHA to Conventional loan products. While the rate of a Conventional Product may be higher, there is no up front MIP and the monthly MI is usually lower. With Conventional MI your credit score is key and hgher scores result in lower MI premiums.
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-Adam
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#12
I understand the need for housing but I've always been weary of PMI..... because there's never a *guarantee* that you can get rid of it.
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#13
agreed, PMI is pesky to get rid of -- there's a minimum time it stays on (10 years if I recall), and is not tax deductible. If you want to get rid of it after the minimum required time period and assuming you've reached 78-80% LTV ratio, it requires another appraisal and oftentimes other fees like another title search. It's quite ridiculous -- everyone wants their cut.

An FHA rate of 3.5% ends up being equivalent to a conventional 4.25-4.50% or worse once you add in both pieces of PMI.

Obviously if you can afford to put 20%+ down and go conventional, that's the way to go.
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#14
Great post and I totally agree.

In respect to getting rid of Mortgage Insurance:

On new FHA loans >90% LTV the MI is for the life of the loan. For 90% LTV or less it is 11 years.

On conventional Mortgage Insurance, most lenders closing documents dictate a minimum of 2 years for conventional Mortgage Insurance to be held (even if you prepay to get the LTV down). (But you need to check with your lender as I have seen that Chase requires their borrowers to keep MI for 5 years.)

In cases where rates are similar and your LTV is 80% or less on an existing loan balance a refinance may prove beneficial; but each scenario is completely unique and you need to evaluate your own parameters and see if it makes sense.


Quote from macb
:

An FHA rate of 3.5% ends up being equivalent to a conventional 4.25-4.50% or worse once you add in both pieces of PMI.

Obviously if you can afford to put 20%+ down and go conventional, that's the way to go.
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#15
Quote from macb
:
agreed, PMI is pesky to get rid of -- there's a minimum time it stays on (10 years if I recall), and is not tax deductible. If you want to get rid of it after the minimum required time period and assuming you've reached 78-80% LTV ratio, it requires another appraisal and oftentimes other fees like another title search. It's quite ridiculous -- everyone wants their cut.

An FHA rate of 3.5% ends up being equivalent to a conventional 4.25-4.50% or worse once you add in both pieces of PMI.

Obviously if you can afford to put 20%+ down and go conventional, that's the way to go.
Publication 936 from the IRS
Mortgage Insurance Premiums
You can treat amounts you paid during 2016 for qualified mortgage insurance as home mortgage interest. The insurance must be in connection with home acquisition debt, and the insurance contract must have been issued after 2006.

Qualified mortgage insurance. Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006).

Form 1098. The mortgage interest statement you receive should show not only the total interest paid during the year, but also your mortgage insurance premiums paid during the year, which may qualify to be treated as deductible mortgage interest. See Form 1098, Mortgage Interest Statement,

Most I've seen are 80% or 5 years
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for those that hate spelling mistakes www.walmarts.comCool

bulb save money by checking your insurance every 2 years (and not every 20) Thanks Liberty Mutual for reminding me to shop. The $842 increase this year sums it up. Across the board increase for Ohio....whatever
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