How to get a LOW mortgage rate??? Help?

MoNsTaMaCk24 · Sep 30, 2007

First off this is why I ask... I live in PA and I see all of these houses going up in my area that cost over 200K. Which makes your house payment like over 1200 a month. Now my girlfriends cousins have 200K house and only pay like 600 a month. PA offers a 1% mortgage rate for single mothers and low income housing. Now if you make around middle wages and not went around whoring at a young age nothing helps you. I just have the biggest problem in that. All I can get is a first time home buyer discount which is like .5% discount on my rate. Does anyone know of any loop holes? I have a 97 Mustang GT convertible. 99 Civic SI, and a 04 Lincoln Navigator. I would have to sell two of my vehicles to own a house. I already own land too. Feel free to let me know what your mortgage rate is and any in sight you can give me. I was looking at rates around 6%

the98stang · Sep 30, 2007

MoNsTaMaCk24 said:
First off this is why I ask... I live in PA and I see all of these houses going up in my area that cost over 200K. Which makes your house payment like over 1200 a month. Now my girlfriends cousins have 200K house and only pay like 600 a month. PA offers a 1% mortgage rate for single mothers and low income housing. Now if you make around middle wages and not went around whoring at a young age nothing helps you. I just have the biggest problem in that. All I can get is a first time home buyer discount which is like .5% discount on my rate. Does anyone know of any loop holes? I have a 97 Mustang GT convertible. 99 Civic SI, and a 04 Lincoln Navigator. I would have to sell two of my vehicles to own a house. I already own land too. Feel free to let me know what your mortgage rate is and any in sight you can give me. I was looking at rates around 6%

You own three cars, so sell the Honda and Navigator (the Mustang is superior anyway). That'll be around 30 grand in your pocket. The more $ you have in the bank, and the better your credit, the better the mortgage rate is going to be. 6% is a great rate in my city. Obviously homes on the "bad side" of town are going to be less expensive, so I would recommend some place in between. Not ghetto, but not upscale either. Keep that land though. Land is very profitable in the long run, and you'd be a fool to sell it now.

Black'02 · Sep 30, 2007

Are you sure its a 1% mortgage and not a discount of 1%. I cant think that anyone would lend someone money to buy a house at an interest rate that is not only below the risk free rate but below the inflation rate! Not to mention a 200k house hardly qualifies as low income housing.

There are alot of mortgages these days that have crazy terms like ARM's and interest only mortgages. A 600/mo payment on a 200k mortgage assuming 30yrs is an interest rate of only about .5%. Like i said there has to be something to this...

If you want to get a better rate make sure you have a decent down payment. Also having good credit helps. Some employers may also have mortgage programs so you may want to see if your employer offers anything.

I dont personally have a mortgage and rates vary over time as well so comparing rates to someone else can be misleading. You always have the option of refinancing if market rates drop enough to make the option viable.

MoNsTaMaCk24 · Sep 30, 2007

Im sorry they paid around 150-160 their houses are now worth 200k. PA offers a single mother discount. And if you have a larger family you get better rates. How is this fair? PA and I am sure other states have these things too. If you make middle wages you get hurt big time! I get the same rates as someone who makes 2-3 times more than me in a year. I make over 16 an hour which is pretty good in my area especially for a 23 year old with just a high school diploma. My navigator isnt paid off... So selling that would just get me out of the hole on it. Im just looking for any loop holes or discounts I should know about that the government offers.

1992 2.3LX · Oct 1, 2007

you should be able to go to any lender right now and be at 6.25% or less for a 30 year fixed.
Don't do anythin but a 30 year fixed. It's not worth it.

AdRock · Oct 1, 2007

I don't know about getting less than 6.25 but it ahould be about that on an existing home. If you look into new home builders most of them are offering all kinds of incentives. Here where I live DR Horton is offering a 5% rate on a 30yr fixed and almost 15k worth of options if I remember correctly.

Also, get with a realtor and look for houses that are in the forclosure process. There are quite a few people in the forclosure process that have 90 days to sell the house themselves before the bank kicks them out. If someone in this situation owes 100k on a house worth 175k there's a good chance you could get the house for around 125k. That seems to good to be true but the person up **** creekl would then have the house paid and 25k in their pocket. So from theri standpoint it ain't such a bad deal.

04DarkShadowGT · Oct 1, 2007

One thing to consider above your mortgage payment is taxes, utilities, phone, cable, internet, etc. It all ads up. I have a loan for 115,000 at 5.25% interest and my payment including payment, insurance, and taxes is just over $800.

This was a first time homebuyer and I bought when the rates were already really low. The builder we used also had a financing arm that got 1st time buyers with good credit a lower rate.

You need good credit and a solid income and you should have no issues getting a descent rate.

StangYellow · Oct 3, 2007

Don't forget, some mortgage companies have a PMI, and some do not require it. Seems like you are a first time buyer, so some companies might wave that PMI and increase the interest rate in order to sell you the house. The PMI is insurance in case you cannot afford your home and the bank gets stuck with your mortgage bill. Another bit of advice: settle for a fixed rate! People across the US are being suckered into buying a home for X amount a month and making payments. Then after a few years, their interest rates increase and they struggle to pay the new monthly payment. Also, dont attempt to struggle and pay for a mansion. You still have to pay for water, electric, property tax, etc.... "Starter homes" arent a bad choice and years from now, it will always be worth more than what you paid for it.

I could go on forever about this. Good luck!

white-04 · Oct 3, 2007

600 a month on a 200K house? Sounds like an interest only loan. I guess there are all types, but by only paying the interest, you are doing nothing to actually pay off the loan. Some loans will give you low interest rate for 5 years for those with marginal credit and then the rate bumps up a bunch.

Also, go get a credit report and see what your score is and if there is anything silly on there you can take care of to get a better score. Also, try Lendingtree. com. Most likely will get a better rate than your local banks.

Depending on how close you are with your girlfriend, I actually bought my first house before we were married. With both our names on the deed, we could afford more with 2 incomes, and possibly a better interest rate.

AdRock · Oct 4, 2007

StangYellow said:
Don't forget, some mortgage companies have a PMI, and some do not require it. Seems like you are a first time buyer, so some companies might wave that PMI and increase the interest rate in order to sell you the house. The PMI is insurance in case you cannot afford your home and the bank gets stuck with your mortgage bill. Another bit of advice: settle for a fixed rate! People across the US are being suckered into buying a home for X amount a month and making payments. Then after a few years, their interest rates increase and they struggle to pay the new monthly payment. Also, dont attempt to struggle and pay for a mansion. You still have to pay for water, electric, property tax, etc.... "Starter homes" arent a bad choice and years from now, it will always be worth more than what you paid for it.

I could go on forever about this. Good luck!

The other way to get around PMI is to put 20% down. Or do an 80/20 mortgage. One loan is for 80% of the amount and the other is for 20% of the amount. As loiong as neither loan is for more than 80% of the total amount mortgaged they won't require PMI.

MoNsTaMaCk24 · Oct 9, 2007

I own the land... Parents handing it over... So for houses that sell for around 220-230K i will get built for like 170k. So right away I will have equity. I figured that would help in my payments BIG TIME! I hope at least... Once the house is built you no longer have a construction loan you go to a home loan. So it will be appraised for a lot higher than what I will owe. :-D

How to get a LOW mortgage rate??? Help?

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