What would an acceptable mortgage rate be for a couple with FICOs of 620 and 680? High income and low debt. 100% finance, O down, 30 year fixed. Dallas, TX area. Thanks in advance. I have been quoted 11.25%!!!!
Asked by:Frank L
Acceptable Mortgage Rate?
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11.25?? Oh HELL NO!! With your FICO score you should be no higher than 6%. IF THAT!
Mine was 670, same scenario as you and I got in at 5.25%. Of course, this was 4 years ago but still, it’s a buyers market….keep shopping around.
That’s way too much … apply for a FHA loan. you will get approved for a very low rate of 5% at the least and there is also downpayment assistance too, that will cover your downpayment cost. You can message me on messenger, and I will give you the details!
I actually work in the mortgage industry, focusing on the state of Texas. 620 and 680 are considered to be fair credit (a little less than good, but not poor). On a 30 year fixed with 100% financed you should be able to find a rate around 8.00% for a first mortgage. If you’re looking at a second mortgage (equity loan) you’ll pay around 10% right now.
Shop around. That rate is TOO HIGH considering your credit scores. In most cases your mid-credit score is used to determine the rate. There are a few out there that use your high score, but they are not as common.
I use to be a Mortgage Loan Originator in Ohio. Ask your Loan Officer how many points they’re getting on the deal. Each point costs you $$$. Loan officers get paid on the front end AND THE BACK END OF THE LOAN.
My husband just got an interest rate of 7.85% on our new house. His mid score is 582. Shop around, it won’t hurt.
Good Luck!