Is this mortgage loan terms/rate reasonable?

berettafan002 · Joined: 06 Feb 2008 Posts: 9 6.68 Dollars($)

600k loan amount
rate 7.125%
points 1.75 ($9k)

home price is 750k and putting 20% down.
I think the rate is already high YET they tag on
the extra discount points to get that rate...

I am in las vegas, and yes in a declining market
but the discount point is absurd imo.

my credit score is 768

What can I do to negotiate rate down or even the points down?

thank you

sara · Posted: Thu Feb 28, 2008 10:19 pm Post subject: RE: reasonable rates/offers

Hi Beretta,

Welcome to the forums.

Considering the national average rates this week, the rate offered seems to be a bit higher. But again it depends on a lot of factors which may vary from one borrower to another. So, if you wish to deal with the lender who has offered this rate, negotiate with him and if possible pay more points so that he can bring down the rate.

By the way, what rate do you think you can you afford? And have you asked for quotes from other lenders as well or is this the only one you've talked to?

Take Care

gmakerley · Posted: Mon Mar 03, 2008 8:51 am Post subject:

for a jumbo rate, that's not so bad.

evolovik26 · Posted: Mon Mar 03, 2008 8:57 am Post subject:

Depending on what else is in the loan scenario it may be higher then what you can get or not. Have them give you a GFE and get a second oppinion.

Guest

Eugene is right. The GFE can give you an estimate of the costs required to be paid. And yes, a second opinion may be good enough to move on.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.07 Dollars($)

Those terms are horrible with a 768 score. You should be able to do much better than that.

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