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What home loan rates are you getting?

Discussion in 'Finance and Investment' started by aquaboy, Mar 22, 2007.

  1. aquaboy

    aquaboy Surfer, sailor, swimmer!
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    Now that some of us are graduating, what are the rates that you are getting if you have excellent credit? Are you going for 30 yr fixed, ARM, interest only?:D
     
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  3. bkpa2med

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    I got a 30 yr fixed at 6.125%. I have a 740 FICO but my rate was higher because I did a no doc loan. They didn't ask me to provide anything to them. I just signed and got the house. PM me for more info.
     
  4. mshheaddoc

    mshheaddoc Howdy
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    Moved to the finance forum from the financial aid forum :)

    Rates got were 6.125% about a month ago for 30 yr fixed (the was FHA though - prefer FHA over doctor loans because most of them have hidden fees and/or are locked for only 3 years... maybe 5 years. But I'm still looking into the doctors loans). Haven't checked rates since but will be checking this week. I had a friend do a "professional loan" with a broker that advertised with my husband's med school, got about 5.8%. Granted its not fixed for 30 years. We might reconsider but since we know we won't be in the house less than 5 years and arm rates are NOT competitive.
     
  5. EM_CHICK

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    I am completing an EM residency out of state and know that I will only be there for 3 years (husband lives in California and will not move with me for business reasons) so I elected to do a 3/1 ARM. Got good faith estimates from four banks (BOA could not do a loan in my state, so referred me to Tower) and they all varied.

    My biggest piece of advice would be to ask what debt to income ratio they use for qualification as I found this to vary as well and I would not have had gone through the process with Suntrust or Compass if I would have known they were on the low side. Also credit score requirements using the middle score varied for the doctor loan program from 660-700. I also was not too concerned about a high debt to income ratio before anyone pounces stating that my payment is too much of my monthly income because my husband does have a 100K salary to help with the payment...but I wanted to qualify on my own.


    Suntrust who was highly recommended on SDN...my experience was quite different as he was VERY difficult to get ahold of and not really willing to work with me (ie. never responded to my requests for additional information, did not confirm receipt of application, etc) Again, just my personal experience and they did have only 40% debt to income ratio

    Compass who was great to work with, had 5/1 @ 5.875% with 1 pt. (Downside was they only have a 38% debt to income ratio and only qualified me for 100K (I have $475 monthly debt)...when I said that wasn't enough she agreed to go to 150K at 44% debt to income ratio, but that was her max...not enough, but I recommend her...Their 3/1 was at a higher rate than 5/1...go figure...

    Tower was very quick initially, but then never emailed me the good faith estimate as promised, had to keep requesting until it came through...rate 3/1 @ 5.875% with 1 pt; 5/1 @ 6.00 with 1 pt. Had 50% debt to income ratio which allowed me to qualify for a 200K loan (could have been more, but that is all that was needed)

    Huntington Bank (local brick and mortar in my residency state) offered 3/1 @ 6.000% with 1 pt; 5/1 @ 6.250 with 1 pt...BUT...offered a 1/4% reduction with automatic withdrawl...ended up going with 3/1 @ 5.75% with 1 pt; but also had 5/1 @ 6.00%...Also allowed me to qualify for a 200K loan...

    Lesson learned...check out a local brick and mortar in your residency state as I got much better service and actually they had a better rate. In addition, many of the companies will not count debts that will be paid off in the next 9-10 months from the date of closing (ie. had a car payment of $495 that was not counted due to being paid off in January 08). In addition, I did have three companies state that because of my non-deferrable private school loan pushing my debt to income ratio too high they would accept a notarized letter from a parent stating they would be solely responsible for the payment of this loan. This would make the loan not counted in my debt to income ratio...I ended up not chosing to go this route because I can afford to pay for it despite the high debt to income ratio, but just an additional thought...

    Recap:
    Annual Salary $43,489
    Monthly Debt $475.00
    Private Loans $277.00 (choosing to pay these due to interest rates and WERE counted in debt to income ratio raising it to 59% which the bank agreed to raise from 50% without complaint
    Qualified for 200K 3/1 @ 5.750 with 1 pt.
    Monthly payment $1411 (includes mortgage, taxes, insurance)
    Closing costs $4600
    FICO Score 683/706/719
     
  6. slazenger

    slazenger New Member
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    Thanks for the great post chick. Who on here has had a good experience with a lender. Who can recommend someone from recent first hand experience? I was very disappointed with lending tree. My local bank has no charter in the state I am moving to. Any input will be appreciated.
     
  7. Sol Rosenberg

    Sol Rosenberg Long Live the New Flesh!
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    I shopped loans today. I could list all of the places I called, but I've got a jillion things to do (I AM in the middle of buying/selling a house and moving afterall :) ). Basically, for a 95% loan, 30-year fixed loan, I'm getting about a 5.9 - 5.91% APR. A lender that I have used before (Earth Mortgage) has 5.875% with $895 in lender fees (no points.) Looks like there is another lender on bankrate.com (just checked now AAXA) that is offering 5.875% with $384 in fees (no points.) I'll probably get Earth Mortgage to match it (they have matched other brokers fees when I have used them in the past.) But I don't usually haggle that stuff until I am ready to lock (which I am most definitely not.) Earth mortgage was offering me the same rate on the first loan in an 80/15/5, as well. The rate on the second lein was about 7.1% IIRC for a 30, payoff in 15. I shopped 80% loans too, and the rate was slightly lower -- 5.75% with the same fees, yielding an overall APR of about 5.8%.

    I have excellent credit and a LOW debt:income ratio (I honestly don't know what it is, but I'd guess <= 10%)

    Everyone is telling me not to mess with ARMs now. The interest rates aren't as competitive as they were a few years ago, making the additional risk not worth it, IMHO.

    I'm probably going to go with the 80/15/5 at this point, but I need to crunch the numbers and see if there is any scenario where the 80% loan may be better for me (I'm looking to save up a lot of cash to get me through medical school. I want to take out as few loans as possible, so to first order, substituting a larger mortgage at 5.9% for student loans at 6.8% makes financial sense.)

    Hope that was helpful.
     
  8. EM_CHICK

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    I too have MANY things to do...however, SDN has helped me in many ways and I wanted to give back to the community with the information I had found...

    I understand to each their own, however I do know that many incoming interns have used doctor loans in the past and not everyone has zero debt. Therefore, I wanted to put forth the current rates that I came across in my week long search. Obviously the rates can change daily all the way up until the rate is locked in when a property is located.

    I am glad that a few found my post helpful and I do appreciate your comment. I am in no way saying that ARMS are better than an 80/20 or any combination for that matter, especially when the rate and points favor one over the other for an individual. However, for me the ARM worked best since I only plan to live in the home for three years.

    I found the mortgage sticky very helpful in regards to personal experiences, contact information and understanding of the loan process and I only wanted to add my .02 cents.

    I also noticed that my earlier post was edited by the moderator as the contact information was illegal for advertising reasons...whatever...I am not a loan officer, I am a MS IV who wanted to share information (both positive and negative) I find the editing extremely hypocritical as the mortgage sticky has names and phone numbers of reputable and not so reputable loan officers throughout...oh well, if you would like some information please PM me.
     
  9. mshheaddoc

    mshheaddoc Howdy
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    Sorry about that but the mods of this forum have taken a stance on name dropping. Yes its great to know the contacts but we ran into issues last year with it and we've had multiple "mortgage" solicitors pop up here. If you have "names" Please offer to have users PM you like you did.

    And thanks for the thorough analysis. It really helps when someone does their homework. Did you try to contact the doctor loan? Just curious.

    As for the credit check - all credit checks within 14 days of each other should count as one. Here's how FICO does it. Remember that each company calculates scores differently.
     
  10. EM_CHICK

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    My above listed rates were all for "doctor/physician loans" (ie did not count student loan debt, 100% financing, etc). I am not too certain what mshheaddoc meant by "Did you try to contact the doctor loan?" Is that a specific company? Please clarify.
     
  11. mshheaddoc

    mshheaddoc Howdy
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    Yes, the doctor loan is a specific company. I'm assuming you didn't look into them then :)
     
  12. EM_Rebuilder

    EM_Rebuilder Member
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    I am still 'shopping' but thus far I have found Wells Fargo to offer me the best.

    It is a No Doc loan (credit score alone (787 was mine) + 10% down). 6.00% interest with one point, 15 year conventional.

    A dude from Compass Bank talked to my class recently; didnt like what he offered me so far, but I have a meeting with one of his satellite people next week to see what they can offer/beat over Wells Fargo. His was a 'doctor loan' 5/1 ARM, 5.75% interest but crazy closing costs including a 1% loan origination fee....



    My end goal is to pay the least amount of interest over 4 years and thus have the greatest amount of equity...
     
  13. g3k

    g3k SDN Donor
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    Chase matched the Wells fargo rate for us. However, our lender was builder recommended so we could get incentives - 6% at .875 points.
     
  14. tbones

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    I've been reading a lot in the forums but still feel I know nothing about mortgages. I'm curious if anyone can give me some insight into whether or not this GFE is good.

    This is an 80 20 mortgage from a local bank, and we don't want to put any money down. Loan for $200,000 with 180,000 at 6.25%/7% APR and 20,000 at 8.3127% APR. The 80% is a 5 year arm.
    The monthly payment is quoted as $1233.29 (P&I) and total funding to close is $1902.39 including $859.24 in closing costs. Total monthly payment including insurance and taxes is $1512.45.

    We tried Wells Fargo but they could only offer $140,000 and I forgot to ask what interest rate/APR that was at. I'm also waiting to here from Bank of America.

    Any suggestions or thoughts would be greatly appreciated! And thanks for the great posts above.
     
  15. tbones

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    I should clarify that this is a 90/10 loan. Math skillls aren't so great:rolleyes:
    It's the way the local bank does there ARMs to avoid PMI.
     
  16. asu03

    asu03 Junior Member
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    I used lending tree and was skeptical, but I am pleased with the 2 lenders referred to me. I plan to put 5% down and have excellent credit, but I have also been offered 100%financing options with 80/20 loans, too (thus no PMI). Do keep in mind, though, that starting this year, PMI is also tax deductible.

    Southwest direct mortgage - offering 6.00% on 30 yr fixed, no points, no origination fees, qualified for $200K. Closing cost estimated at $3K total, including the escrow! The loan officer was GREAT, really helpful and pushed hard for the underwriter to accept me wanting to close on the home before starting work, and to accept my loan deferments. I will most likely go w/ this company. They have an actual office in the city where I will be moving to, and customer service in these smaller, local places does seem to be better.

    Quicken loans - offering 5.99% on 30 yr fixed, no points, qualified for $200K. Closing cost is $3000, which includes all except your escrow. Very business-oriented loan officer, seemed like he wanted to seal the deal. Certainly not rude, just very business-y. Also very laid-back in terms of documentation needed.

    I also contacted my credit union, which offered 5.625% the other day, but with 1% origination fee and fairly high closing costs. Also very stringent on the working before you close thing. Very nice people, though. I would recommend checking into your credit union if you are a member - rates tend to be lower, from what I've read. I did not want to pay points though, and 1% origination is basically 1 point. I have read that at this stage in life, it's not the wisest thing to pay points to buy down your interest rate, ESPECIALLY if you don't plan to stay in the house long b/c you won't recoup that money back in interest saved. (Go to bankrate.com for amortization calculator to see if you're saving money or not). It's usually better to put that money toward down payment.

    And finally, Bank of America's Doctor Loan... I was extremely NOT impressed by their customer service, and their rates are definitely not the best... 6.375%. I understand that it might be helpful for those without money for a down payment, but if you do have something to use for a down, then I wouldn't go w/ BofA... even the BofA rep told me (rudely) that it's a bad idea to use the Doctor Loan if you have money for a down. And besides, the other companies are offering 100% financing on larger loan amounts, too...

    I would recommend using a mortgage broker of sorts... southwest direct and quicken are both brokerages, and they have definitely offered me better rates than the commercial banks. they just have access to lenders that you may not have access to. I checked out a lot of places (Wells Fargo, BofA, HSBC, Chase, Washington Mutual, ING, some local banks, etc.), and you might have better luck, but definitely shop around.
     
  17. Jocomama

    Jocomama Make 'em bleed!
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    Be very careful with Lending Tree and Quicken.
    Years ago, when I was in banking, we had the Lending Tree and similar internet divisions: Those that were not successful in building their own book of business relied on these leads. There was one superstar in the group, but the majority did not have the same knowledge, detail or "matching" the Good Faith Estimate with your Closing/Settlement statement as those who obtained their own leads and referrals. I saw this at our Chicago (corporate) and Michigan branches, then again when I was at Countrywide.

    FInd out the banker/broker your family, parents, uncle used if you are going with a broker.

     
  18. Gubernaculum07

    Gubernaculum07 New Member

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    Loan offered today by local mortgage broker:
    30-year fixed on $250,000 (100% financed)
    @ 6.625% (includes lender-paid PMI)
    Estimated closing costs of $4,500
    FICO score = 800

    Think I can do better?
    No way we could put more than 5% down.
     
  19. mshheaddoc

    mshheaddoc Howdy
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    Another lender to consider: Regions Bank. They are out of the midwest apparently. They went to my husbands school and sent out binders to all of the graduating students. At first I was leary but I contacted someone other than who sent the binder and I have to say I'm impressed with their service. They can't quote you until you apply since the rate is credit based to an extent. They will work with your credit for the most part I think (you need at least a 660). And our credit is on the low end due to high student debt only. (No lates/bankruptcies, etc).

    They have an emerging professionals loan. Rates as of yesterday were 6.0% for a 5/1 ARM (no points), No PMI, 100% finance, they only have a $295 UW (underwriting) fee, the rest you pay cost. I'm considering a 7/1 with 2 pts to by my rate down to 5.625% (the rates yesterday were 6.25% for a 7/1) because buying that rate I'd break even in a little over 4 years and our payments would be well under what we were expecting with this housing cost. Oh and nothing to lock the rate.

    So far I have no one that can beat that and I have checked out tower mortgage (physicianloans.com) and they gave me 6.25% with 1 pt and then their fees were nickle and dime of at least $1000. The only loan conventionally I've found (that will not count your student loans) is supposedly an FHA loan which I'm still not sure that they accept.

    ALOT of lenders are tightening up on the 100% products and won't offer them (as of last monday) as investors are bailing on them.

    I would highly suggest that you try this bank to see if they will work with you. They are a bank who wants to go the extra mile for physician loans. I am in NO WAY associated with this bank but to say that I'm impressed with what I've seen is an understatement. I'm still going to contact two other lenders (one of them is a bank in the area we're moving, the other is ING as they both have policies in place that defer student loans) probably next week to see what they can do.
     
  20. Sol Rosenberg

    Sol Rosenberg Long Live the New Flesh!
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    Is this a conventional loan?

    One of the GFEs (for a conventional 30-year fixed on the 1st loan and 30, payoff in 15 on the second loan) that I am throwing out (that I obtained on 4/4/07) was for:

    6.125%/8% on an 80/20
    6.0%/7.625% on an 80/15/5

    95% loan (not an option that I am planning on pursuing, but I usually ask anyway) was also 6.125%

    Lender costs for all 3 options were about 1k (the 95% loan obviously doesn't have the second loan fee of approx. $150, so its lender costs were about $850.)

    My FICO score is approx. equal to yours.

    I was considering this to be a bad deal. My best are below 6%, and I am currently haggling with 2 different brokers. I'm probably going to lock in a day or two (we're set to close on 4/26 if inspections go OK, etc) so I'll post what I end up getting.

    EDIT: Because of the lender-paid PMI, I'm going to assume that your quote was NOT for a conventional loan. PMI would've been about $60/month on the 95% loan I listed above. Therefore, since you are not looking at a conventional loan, don't get too discouraged by my numbers :)
     
  21. cherl

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    I am shopping around and found at BOA I am getting the best quotes compared to elsewhere.
    my fico scores: 794
    5.875%, no PMI, 100% financing, 40yrs, 1% origination fee
    Some places financing denied due to my salary and student loans.
    please let me know if this is really good deal....
    I appreciate your input. thanx:)
     
  22. Wifty

    Wifty Eccentrically Silly
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    We found our best deal through US Bank.

    100% financing, no PMI, 0 down, 5.75% on 0 points/5.35 on 1 point, was able to do an interest only, FICO scores around 690.

    Not everyone at US Bank knows about the doctor loan though. If you can't google it, let me know and I can link you to the person that helped us.

    good luck!
    We are so excited to be homeowners!
    Rebecca
     
  23. Sol Rosenberg

    Sol Rosenberg Long Live the New Flesh!
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    How long ago was this? This sounds too good to be true for today's rates.....
     
  24. Wifty

    Wifty Eccentrically Silly
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    About a month ago actually. So, not sure if things have changed since then.

    with smiles,
    rebecca
     
  25. chickenscratch

    chickenscratch really, reallly cool
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    what about the closing costs wifty? my two cents is just be careful with that because higher closing costs or origination fees can negate a good rate pretty easy. scan that good faith estimate! best wishes.
     
  26. Wifty

    Wifty Eccentrically Silly
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    Good point. We got a deal where the sellers paid closing costs. We just had to pay $1000 earned money deposit and inspection fee.

    There sure is lots to know though when buying a home!

    with smiles,
    rebecca
     
  27. Sol Rosenberg

    Sol Rosenberg Long Live the New Flesh!
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    Things have gotten worse in the last few weeks. I am doing an 80/15/5 conventional. I just locked at 6.125% on my first lein with approx. $1.5k in lender's fees ($325 appraisal, $400 Broker fee, which got moved over to an origination fee for tax purposes, $550 underwriting fee, and $100 attorney fee. Second lein is at 7.625% with a $150 second lein fee. The second lein is going away when I sell my current house, so I'm not too concerned about its interest rate.

    I could've locked at 5.875% on the first lein about 3 weeks ago, but didn't. Coulda shoulda woulda.

    Actually, I just re-read Wifty's post and saw that it was an interest-only. Makes sense that the rates are a bit lower for IO loans.
     
  28. MJB

    MJB Senior Member
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    Just quoted 6.25/8.5 on a 30 year 75/25 loan...without buying the rate down, etc...

    We both have > 740 credit scores.

    Another person quoted 6.25/8 on a 30 year 80/20 loan, but the "fees" on that were ridiculous, and make me think we were quote a buydown rate.

    The good news is our current house went under contract last night...that's a good feeling.
     
  29. cherl

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    please email me the contact info of that person.
    thanks
     
  30. Sol Rosenberg

    Sol Rosenberg Long Live the New Flesh!
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    I think you could do better on the 75/25. I got 6.00/8.00 on a 75/25 on Monday. Fees were roughly $1-1.5k. This was with AAXA and Earth Mortgage, both of whom I found on www.bankrate.com. I was considering a 75/25, but decided to stick with the 80/15/5 instead, since it makes it easier for the second lein to go away. The rates on the 80/20 that you quoted are about what I was getting. Not worth it to take the hit on the 1st lein, IMHO.

    Congratulations on finding a house and getting it under contract! However, as I'm sure you know, the fun is just BEGINNING! (I'm about to submit my inspection reports and an amendment to the contract for repairs, etc) Our contract effective date was a week ago.
     
  31. MJB

    MJB Senior Member
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    Our agent at FH stated she could buy those rates down as well, but always quotes things without points, etc..

    It was quite a relief to have reasonable assurance that our house is sold...that was the big hangup...all downhill from here (assuming we end up closing as planned).
     
  32. kaos

    kaos Web Crawler
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    Wow, it seems like I'm getting ripped off with a $350,000 offer on an 80/20 no doc loan with 6.75%/10% interest rates. This is with Allied Home Mortgage. :thumbdown:
     
  33. Sol Rosenberg

    Sol Rosenberg Long Live the New Flesh!
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    Not necessarily. Strike 1 = 80/20. Strike 2 = No Doc.

    Each "strike" drives up your interest rate. That 10% second lein does seem awful high, but the 6.75% seems reasonable.
     
  34. filter07

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    I have several mortgage offers, but they're pretty similar. I was wondering how this 80/20 looks, and if all these offers are similar because this is pretty much what I should expect, or if they're similar because I'm getting shafted by everyone I talk to.

    I'll be buying a condo at 172000, with 20000 down. Since this is less than 20%, I'm considering going with a piggyback loan to cover the rest and avoid PMI.

    30 yr fixed
    First loan @ 6.375
    Piggy back loan @ 9.8%
    Total closing cost (including prepaid) is 4150
    Monthly payment is $1476. (includes HOA, insurance, property tax)

    ///////////

    The other offers I got were:
    30 yr fixed, rate 6.375 + PMI ($101) = monthly payment of 1533. closing cost 4296.

    30 yr fixed, rate 6.875 (lender pays PMI) = 1483/mo. closing cost of 4326.

    7/1 ARM doctor's loan, rate 6.625%, total closing 4877, 1463/mo

    7/1 ARM doctor's loan, rate 6.625%, total closing 4877, 1325/mo, interest only

    30 yr fixed, @ 6.25 + PMI ($67), closing 4000, 1463/mo.

    ////////////////////

    My FICO is 790+
    130k in student loans
    car payment of 280
    no CC debt
    HOA is $200/mo
    tax $260/mo
     
  35. ethat001

    2+ Year Member

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    I just locked on a mortgage yesterday. I was considering the 80/20, but I am also planning on buying a car and didn't want three loans. I went with the doctor loan instead. Here's what I was offered:

    7 year ARM with 6.125%, 0% down, no PMI, no origination or points
    - $400k loan, $600 lender fees (total closing costs ~$3100 + reserves)
    - FICO 735, 790 for myself + wife
    - $160k in student loans, but wife w/1st year attending salary this year

    Maybe our income qualified us for a better rate? I'm not sure. I was offered these rates both with SunTrust and Bank of America (specifically the "relocation department"). I was originally quoted 6.0%, but rates supposedly went up this week when I locked in.

    FYI, I believe PMI is tax deductible if you're buying this year (and your salary is is lower than a specified limit, I think $150k). That may change your decision analysis.
     
  36. CookieBear

    5+ Year Member

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    Yeah, we're looking to lock-in at this point now too. The rates are heading a bit above 6% apparently. We called WAMU, Countrywide, and some Kansas local banks. "Ever Bank" seems to have a good offer for us; we may go with them.

    We will be making a down payment, and we have 800+ FICO. Doing this as a second-home purchase may hurt us a tad on the loan rate.

    (I also need to get my GradPlus loan going. Definitely going to need one of those!)

    So, is anyone else going into med/dental/you-name-it professional school and buying a home now too?
     
  37. EM_Rebuilder

    EM_Rebuilder Member
    Physician 10+ Year Member

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    I locked on mine the other day:

    15 year fixed, No Document loan

    Score of 800 something, required 10% down

    No origination fee, No PMI, did buy 0.80 of a point to make interest rate at 6.00%
     
  38. Adcadet

    Adcadet Long way from Gate 27
    10+ Year Member

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    Through a local private bank, just for the local residents. About a month ago was running at 5.625% for a 7/1 ARM and 5.50% for a 5/1 ARM. Zero down, no PMI. Just have to escrow 1 year of taxes and home owners (hazard) insurance, and the origination fee was 1%. Credit score "almost never matters."
     
  39. bkpa2med

    10+ Year Member

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    PMI is tax deductible for people with salaries under $100k/yr.
     
  40. Twitch

    7+ Year Member

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    Credit unions can have really low rates that are hard to beat. If you're a first time home buyer you can get 5.125% - 0.25% for direct deposit (so 4.875%) for 5/1 ARM through AA Credit Union. Though getting membership is tough, because you need to have a(n immediate) relative who works in the Airline/Transportation industry.

    4.875 with no points is tough to beat.

    Also try penfed, which is easier to get into, and while their rates are competitive they really shine when it comes to gfe.
     
  41. Stryke

    Stryke Junior Member
    7+ Year Member

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    does anyone know if working at a VA hospital makes you eligible for penfed?
     

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