Thread: How can I get an interest rate for under 5%?

So I'm trying to get pre-approved for a home loan, and the broker said I would get a rate of 5.25......is there any way to get one for under 5%?

They're out there, but 5.25 is pretty good locked in at 30 years. I'm at 5.19 and my loan was done in 2007. I have great credit. How is your credit? Still, that's a good int. rate!

Originally Posted by Palifornia562

So I'm trying to get pre-approved for a home loan, and the broker said I would get a rate of 5.25......is there any way to get one for under 5%?

Buy the rate down. I have used brokers in the past, but have received better rates going directly to BofA and Wells lately. Banks have now realized that they can "retail" loans with hardly any contact with the borrower and thus no longer put out competitive wholesale rate sheets. Plus, they are about to take a huge bite of sh*t sandwich on broker-originated loans that Fannie and Freddie are putting back to them, so they are gun-shy on the broker relationships now. Ask your broker how many points he is making at 5.25%. Is it a conforming, super-conforming, or jumbo loan? BofA would probably give you 5.000 or 4.875 on a conforming purchase right now, assuming you are top-tier credit and have 20% down.

I'm a mortgage broker/property investor for United Funding and Security National..
I've given plenty clients rates at 4.875 if they quality, that also depends if you are FHA or conventional, not to mention what your term is as well (30/20/15 year) etc.

If you'd like to talk about it, shoot me a PM and I can give you my contact information.

Mine is 4.8, I bought it down, however, it pays for itself as long as I stay in the house for at least 7 years! I obtained my mortgage in April '08. I also put 30% down.

make your mouth like a doughnut and hope for the best!!!!

penfed i believe is the only one in the country with a 5/5 ARM. you can be a member just by donating something like $10 and keeping 15 in a checking account iirc. this is a 5 year arm, that moves every 5 years. it can't move more than 2% and the max it will ever do is 5+original rate. currently it's at 4.0%. since this is L4P and you are in cali, i'll throw in that i'm not sure how it works for jumbo loans. also make sure you are buying the place for a solid price, i'd start with inflation adjusting prices for the home and area from 2001 or earlier. don't catch a falling knife!

So many people lose good opportunities because they shop around and when you come back to the original broker, the deal is gone. I'd take it and be happy - that's a great rate.

I just got quoted by Regions Bank for 4.8%.

Depends on what home loan you are applying for?

VA (Veterans Affair)
FHA Loan
Conventional loan

Those three are all extremely common types of loans with varying interest rates. As others have said you can "buy down" your interest rate, however this will result in a larger "out of pocket" expense when purchasing your home.

Also, depending on different lending institutes, corporate or private lenders, there will be varying interest rates.

For example, here in Reno, NV.. the latest update I received was:

• Conventional purchase ($417,000 loan amount or less) – primary residence or second home – 10% minimum down payment and private mortgage insurance required with a 740 minimum FICO score - 30 year fixed = 5.25% - 15 year fixed = 4.75%
• JUMBO purchase ($417,001 loan amount or higher) – primary residence – 25% down payment minimum – 680 minimum FICO score required – loans up to $1,500,000 – 7 year ARM = 5.75% - 30 year fixed 6.375%
• Investment purchase – 1-2 units – 25% down payment minimum – 30 year fixed = 5.75% (with 25% minimum down payment)
• FHA/VA purchase – 3.5% down payment required on FHA – VA = 100% financing and no mortgage insurance – 6% seller concessions allowed toward buyer recurring and non-recurring closing costs – 30 year fixed = 5.25%
• USDA Rural Housing Authority – 100% financing and no mortgage insurance – 30 year fixed = 5.50%

I wish you good luck in your search of a home .... Also, just in a personal opinion, 5.25 is pretty good for where we are now