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Refinance Rates for Today

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Company Loan Type APR Est. Pmt.

Mortgage rates varying widely

Posted on: 09th May, 2011 01:40 pm

I have question regarding mortgage rate, when i contacted bank of america and other company, they are telling today's rate is around 4.6 with excellent credit and zero debts if qualified for mortgage. But when i went and google from some sites ( linked from reliable sites such as many are showing very low rates,
example: atlantic mortgage said they have for 4.25 rate with zero points and zero lender fee
Am i missing something?
even in many sites like bankrate are showing average rate for today is around 4.6%
Rates are really low for this week. The terms to your scenario is specific to your case. I would not be able to tell you what is in the market for you, as I dont know your state, loan amount, credit, income, ect. When you are looking at rates, you also want to look at the APR, which is the total cost of the loan, including your closing costs. One bank might tease you with a lower note rate, but their apr is higher than another bank. What state are you located in? You can reply for more discussion. Good luck!
Posted on: 09th May, 2011 01:44 pm
For some reason , my message is not getting posted. I live in northern virginia area, my credit score is around 800 and i have income around 90k
Posted on: 09th May, 2011 03:16 pm

each bank send their loans to the same places, either fha, fannie mae or freddie mac. each bank you talk to works on the same similar set of guidelines. that being said, each bank has different fees, over head, and other investor guidelines that can change the rate you qualify for. again, it is more important to look at the apr associated with the rate you are quoted. the least amount of difference between the rate and apr rate, determines a low cost. if the difference is higher, then you are paying more to obtain this rate from this lender. each bank again, will have same programs, but different rates. if you think you will refinance, you can opt for the lowest monthly payment, likewise, if you want to payoff this loan, you want the cheapest total cost, which is the apr...
Posted on: 09th May, 2011 04:04 pm
So that means if i dont have plan to refinance ( assuming rate will not got lower than current rate), i need to see what is the apr and compare apr instead of rate. Finally, i need to go by lowest apr.
One thing i did not understand is why is rate + costs =apr. Usually i thought rate and apr related to interest per month or per annum. Is cost =closing cost here?
Posted on: 09th May, 2011 07:47 pm
Yes, here cost basically means closing costs.
Posted on: 10th May, 2011 12:35 am
If i take FHA loan on amount say 360k (house price 375), is there any way to know what would be monthly FHA insurance i need to pay?
Posted on: 10th May, 2011 12:38 pm
Hi sburugu,

You can contact the insurance agent in order to know what your monthly FHA insurance payments will be like.

Posted on: 10th May, 2011 11:12 pm
its coming out (loanamount*1.15)/12
Posted on: 11th May, 2011 12:16 pm
Did anyone got loan from 'atlanticmortgage', any reviews/experiences would be appreciated. From their first hand quote i see that they are pretty better than bank of america but not sure if they charge anything extra
Posted on: 11th May, 2011 12:18 pm
Youre certainly not getting much play on your follow-on question. Answers is simple but you may wish to jot down a quick Excel sheet. I am assuming that the $360K mortgage is within the FHA maximum for the area, mortgage is has 30-year term, and that the appraised value is at least $375K.

Your upfront MIP will be $3,600 and is typically fully financed (on top of the $360K you mentioned. YOURE STILL PAYMENT THIS THOUGH!

Monthly MIP is a little trickier in that you are very close to 5% down payment; At 5% down, the monthly MIP rate drops 5 bps but lets assume the deal is as presented and you pay 1.15% month MIP or .0115/12 per month. The dollar amount is calculated on the average scheduled outstanding base loan balance (exclusive of financed up front MIP and inclusive of the original amount) but you can overestimate the monthly amount by multiply the base loan amount ($360K in your example) by 1.15% and dividing by 12. At 4.25% the monthly MIP would be $342.35 and would increase only slightly within the range of reasonable note interest rates, e.g., at 4.50% the amount would be $342.47.

The monthly MIP rate increased 4/18 and unless your credit is trash, you may wish to look at 5% conventional… or even going to 5% down on a FHA.
Posted on: 11th May, 2011 12:23 pm
1) I am assuming appraised value will be around 355k to 360k, will this be a problem?
And also in your case, if i do 5% down, you said it will decreased by 5bps, how much it would be for 360k loan?
10% conventional is 3.5% interest rate but still has PMI ( around 160$ which is almost half of FHA, which is good0
Posted on: 12th May, 2011 06:42 am
If you're going for a conventional loan, you'll be liable for paying 20% down payment in order to get a mortgage. If you can't do so, then you'll be liable for paying the PMI. If you go for FHA loan, then you will be liable for paying 3.5% down payment.
Posted on: 12th May, 2011 10:44 pm
Yes thats right, but with conventional loan and 10% down, PMI is less than half of the FHA loan. Is there any specific advantages for FHA other 3.5% downpayment?
Posted on: 13th May, 2011 11:50 am
Interest rates will be low and you will require a low credit score in order to qualify for a FHA loan.
Posted on: 16th May, 2011 02:04 am
I don't think that interest rates are substantially lower on an FHA loan as opposed to conventional, Guest.

Not only that, but "you will require a low credit score in order to qualify for an FHA loan" is quite an anomaly.

Indeed, borrowers may qualify for FHA loans with lower scores than required by conventional loan standards, but it's not exactly a "requirement," after all.
Posted on: 17th May, 2011 07:43 am
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