Home loan interest rate?
I am in the process of buying a house for about $480,000. My down payment is $180,000, so I am borrowing $300,000. My credit score is average but Experian said that I am in the Prime sector. In February, the lender give us a good faith estimate that we would get a 6.25%. Five months later, the rate go up to 6.85%. Is this reasonable? We ask him why and he told us that the interest rate for a 30 years fixed is going up nationwide. Also my payment is about $2,346 a month for 30 years. Should I got a new lender or what?
Public Comments
- rates did go up. you may be able to do better. wouldnt know unless i looked into your situation. seems like your payment could be way better depending on the goals you have for that property. Email me if you have questions
- It sounds like your lender is being totally honest with you. Rates have been going up over the last few months and will probably keep going up. Still it never hurts to get a second opinion and explore what options are out there. There could be other programs available and possibly better rates but as I said before, it does sound like the lender is being honest with you. Mark Marchand Your Mortgage Consultant For Life lendermarkm@yahoo.com
- The rate increase is not that unreasonable. However, you should shop around and investigate other rates. Typically when you borrow a sum of money that large you get a better rate, then if you borrow less. And just because they quote you a rate, it isn't guaranteed unless you "lock" in the rate. Then it is only good for a set amount of time - like 30 or 60 days. So once you find a really good rate - lock in right away because rates can fluctuate daily.
