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put all the numbers and click "show/calculate amortization" table, see how much you are paying as interest for each interest rate in 30 years, you will get an idea how much money you are paying extra for rate difference between 4.375 and 4.625
put all the numbers and click "show/calculate amortization" table, see how much you are paying as interest for each interest rate in 30 years, you will get an idea how much money you are paying extra for rate difference between 4.375 and 4.625
I did those calculations too but the reason I'm still considering the options I've presented is because of the upfront costs that I shall incur with option 1. Recouping those upfront costs (I'm going by 5k as the closing costs as that's the max I've received so far) vs the saving in monthly payments with option 1 ($60) will mean it will take roughly 7years to recoup those costs.
All,
If you've shopped recently with the following parameters: credit score: 740+ & loan amount of 417k, what's the max lender credit or interest rate did you receive?
The interest rate & lender credit work on a sliding scale. The lower the rate, the more it costs you while the higher the rate, the higher the credit. The lender credit could go as high as you'd like but comes at cost of higher rate. To put a figure on it, a 5.5% interest rate today for your example, would give you 4% (4% *$417K) back.
You would never need that much, nor use that option - it's just shown to answer your question.
Regarding whether it makes sense to get the lowest rate vs. a few ticks up for costs to be paid is not a "one size fits all" answer. Your specific circumstances should be viewed such as: Putting 20% down? Available funds? Reserves? Other debt(s)? Household income? Timeframe for home ownership? Etc...
nc99 answered the question you asked me. And others have given you good information as well.
Asking what others got for mortgage quotes is meaningless. The rates and deals are regionally based and changed daily. What I received in January, 2013 with a 800+ credit score has no relevance to your situation.
But I will add this: Part of the decision should be based on what else you can do with the money. We could have paid cash for the house, but were able to get such a low interest mortgage that we took out a mortgage, leaving our cash in our investments. That will also allow us to itemize, which we would not otherwise be able to do.
Hi. I'm looking to get a home loan. I'm a first time buyer with poor credit. IU.S. not bc of debt by never have financed anything. Not a car or anything. Always just saved the money for what I wanted. My house and land are both paid for. So what's the best option for me?? Only looking for 30-40,000. Any help would be appreacited!!!
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