Ask Experts Questions for FREE Help !
Ask
    loidiep's Avatar
    loidiep Posts: 16, Reputation: 1
    New Member
    		  
    #1

    Apr 22, 2009, 09:02 AM
    Interest rate
    What determine interest rate, cause I'm in the process of closing, and big banks like wells fargo said that they can only give me a rate of 6.35 but mom and pops brokers are telling me that I can get 5.75 with them, is that possible. I'm also doing a conventional loan also, not FHA, can someone give me some advice. Is my interest rate high cause of my credit, I haven't close yet so can I still go to that mom and pop brokerage
    homesell's Avatar
    homesell Posts: 244, Reputation: 43
    Full Member
    		  
    #2

    May 7, 2009, 05:45 AM

    Mom and Pop mtg. brokers often throw out teaser rates and really can't give you those rates. A certain credit score gives you a certain rate and that's that. The only way they can bring down the rate is by using a buydown, money contributed from the seller usually and its not worth it. 1% of the mtg. price may get you 1/8% lower. The brokers love this because a good portion of that money goes to them. Loan originating, qualifying, and processing for the most part nowadays is computerized
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    May 7, 2009, 05:50 AM

    Another way the brokers can give a lower rate is by charging fees that will be added to the loan balance.
    homesell's Avatar
    homesell Posts: 244, Reputation: 43
    Full Member
    		  
    #4

    May 7, 2009, 07:04 AM

    Right again scott. Thanks for pointing out what I forgot to mention.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Interest rate [ 2 Answers ]

Can a mortgages co raise your interest 7 points in one year, with 2/2 arm? Now paying 14.50

Interest Rate [ 1 Answers ]

How do I calculate an interest invoice based on past due balance when the contract states that payments due and unpaid shall bear interest from the date payment is due at the rate of 15% per annum?

Interest rate [ 1 Answers ]

Interest rate goes up due to inflation is going up or economy is in recission?

Interest rate [ 1 Answers ]

how do u find the interest rate when you have a fv 502.84, pv 250 and number of years 5. When the equation fv=pv(1+k)^n, where k is the interest

View more questions Search