Interest Rate - Ask Rich / Money 101

Kris · 04-30-2009, 03:36 PM

What would you consider a good interest rate for a first time home buyer?

carolinagirll · 04-30-2009, 03:38 PM

good credit?

down payment?

if yes and yes then 4-6%

DianeS · 04-30-2009, 03:40 PM

well we just bought our first home we are both 23, we have good credit, and we didnt put anything down and our interest rate is 6% everyone I know says thats really good

gunsgirl · 04-30-2009, 03:40 PM

4.5 -6%

but will also depend on if you are going conventional with 20% or more down ( 4.5 or less) FHA 3.5% down( 5-5.5) or VA 0 money down (5- 6%.)

Kris · 04-30-2009, 03:40 PM

Originally Posted by carolinagirll

good credit?

down payment?

if yes and yes then 4-6%

Fair/poor credit

No down payment-- VA loan

thejigsup · 04-30-2009, 03:42 PM

My first house (in 1997) we got at 8% and refinanced a few years later for 6.5%. Last Feb. we refinanced again for 4.375%!!! Today I would say 5% is a good rate. We locked in at 5.75% last fall on our new home, and thought it was great. Everything is topsy turvy right now, but I personally think anything around 6 is a great deal, especially if you are going for a 30 year mortgage. If you are going for a 15 year the interest rate becomes less of a big deal.

IslandSweetie · 04-30-2009, 03:43 PM

For us, 6% is pushing it. Our mortgages on our houses are at 5.5% and 5.75%. I can't believe we almost bought a place in 2002 with 7%.

thejigsup · 04-30-2009, 03:46 PM

Fair/poor credit

No down payment-- VA loan

If you go via NFCU, they tack on I think a quarter point for less than stellar credit. Right now they are at 5% for a 30 yr va, with no points. That's pretty good!

If you are going to wait a bit to buy (ie you are fact finding right now), get a credit report and plug up some of the holes. Close unused credit cards/pay off small balances and close them. Some things which seem obvious can actually hurt your credit, so I suggest going to the military's local financial specialist (not sure what they call them now), and ask for help in repairing your credit. It can help.

Kris · 04-30-2009, 03:49 PM

Wow than we really are getting a good a deal at 5%

thejigsup · 04-30-2009, 03:53 PM

Yes, and especially since you'll get that $8,000 tax credit if you buy soon. I sure wish I could have taken advantage of that :-(

04-30-2009, 03:36 PM	#1 (permalink)
Kris Finding strength one day at a time Join Date: Aug 2006 Location: Suffolk, Virginia Posts: 16,551 Classifieds: (2) Activity: 65% Longevity: 55%	Interest Rate What would you consider a good interest rate for a first time home buyer? __________________ Yes I know I am smoking hot

04-30-2009, 03:38 PM	#2 (permalink)
carolinagirll Senior Member Join Date: Sep 2008 Posts: 2,691 Classifieds: (0) Activity: 43% Longevity: 19%	good credit? down payment? if yes and yes then 4-6% __________________

04-30-2009, 03:40 PM	#3 (permalink)
DianeS GEAUX TIGERS!!! Join Date: Dec 2007 Location: Barksdale AFB Posts: 1,832 Classifieds: (0) Activity: 24% Longevity: 33%	well we just bought our first home we are both 23, we have good credit, and we didnt put anything down and our interest rate is 6% everyone I know says thats really good __________________

04-30-2009, 03:40 PM	#4 (permalink)
gunsgirl I love cats Join Date: Jul 2007 Location: kingsland GA/ HITRON JAX Posts: 4,387 Classifieds: (3) Activity: 59% Longevity: 39%	4.5 -6% but will also depend on if you are going conventional with 20% or more down ( 4.5 or less) FHA 3.5% down( 5-5.5) or VA 0 money down (5- 6%.) __________________ GA licensed Realtor Dawn

04-30-2009, 03:42 PM	#6 (permalink)
thejigsup Member Join Date: Jun 2008 Location: Arlington, TN Posts: 1,420 Classifieds: (0) Activity: 61% Longevity: 24%	My first house (in 1997) we got at 8% and refinanced a few years later for 6.5%. Last Feb. we refinanced again for 4.375%!!! Today I would say 5% is a good rate. We locked in at 5.75% last fall on our new home, and thought it was great. Everything is topsy turvy right now, but I personally think anything around 6 is a great deal, especially if you are going for a 30 year mortgage. If you are going for a 15 year the interest rate becomes less of a big deal. __________________

About Us

MilitarySOS Shortcuts

MilitarySOS Help

About MilitarySOS

04-30-2009, 03:43 PM	#7 (permalink)
IslandSweetie I'll miss you Daddy 2-25-40 ~ 10-1-09 Join Date: Mar 2009 Posts: 669 Classifieds: (0) Activity: 13% Longevity: 11%	For us, 6% is pushing it. Our mortgages on our houses are at 5.5% and 5.75%. I can't believe we almost bought a place in 2002 with 7%.

04-30-2009, 03:49 PM	#9 (permalink)
Kris Finding strength one day at a time Join Date: Aug 2006 Location: Suffolk, Virginia Posts: 16,551 Classifieds: (2) Activity: 65% Longevity: 55%	Wow than we really are getting a good a deal at 5% __________________ Yes I know I am smoking hot

04-30-2009, 03:53 PM	#10 (permalink)
thejigsup Member Join Date: Jun 2008 Location: Arlington, TN Posts: 1,420 Classifieds: (0) Activity: 61% Longevity: 24%	Yes, and especially since you'll get that $8,000 tax credit if you buy soon. I sure wish I could have taken advantage of that :-( __________________