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Current 203K standard loan rates in CT?

Trying to buy a house for around $450K with 4% down. Got 2 quotes from brokers, both want APR 5.6% and over $20K in closing costs (not including prepaids!). Is this ridiculous for an FHA mortgage? by pauly865279 from Stamford, Connecticut. May 25th 2017 Reply


Pauly, I can get those numbers down for you Email me at Justin.egan@rmsmortgage.com

May 25th 2017
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Teoman Turut (teoturut)
#40 ranked lender in Connecticut - 13 contributions

Closing costs may be reflecting the upftont mortgage insurance premium thus APR% seems very high. I can get you a much better rate though.. my cell#203-273-8408e-mail: tturut@americannationwide.com - Teo

May 25th 2017
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Hello, yes the closing costs seem a bit high but as others mentioned it probably includes the upfront mortgage insurance. 203k loans generally carry higher rates than standard FHA loans mainly because the rates are locked for longer periods of time. I'm certain I can help you with the rate and APR. Our office is located in Branford, CT. If you have any questions or would like help with this you are welcome to contact me. My email is: gpomeroy@boemortgage.com.

May 25th 2017
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Brad Tippett (btippe_202_589)
#29 ranked lender in Connecticut - 11 contributions

Of course it's ridiculous.... It's FHA. My question is WHY are you doing FHA when there are programs that offer 3% down w no PMI? email @ btippett@gcfinservices.com

29 days ago
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Larry Gray (lgray_312_247)
#3 ranked lender in California - 1,122 contributions

On all FHA loans the APR tends to be a much higher hypothetical rate over the basic rate you receive on the loan. The 1.75% added to the loan for mortgage insurance is the primary culprit in creating such a high APR. The government created the APR as a hypothetical rate that is really supposed to reflect costs...if costs were actually a rate. Not everyone's APR is calculated exactly the same. However, generally if an APR is 2 or more eighths higher than the rate, you likely are paying costs above what most people would be paying for their rate and loan.But on an FHA loan it is all thrown out of whack! I am more a believer in comparing actual good faith estimates to determine which is the better deal for you. We are a rare mortgage company in that we actually do our own FHA 203K loan (direct to fannie mae) which enables us to have unusually great rates for an FHA 203k loan which is usually higher rates/cost then a standard FHA loan.. Most have very few options...usually one as either a correspondent lender or as a broker. However, besides quote comparisons, your priority should be getting someone with a track record of successfully funding fha 203k loans on time.

29 days ago
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Larry Gray (lgray_312_247)
#3 ranked lender in California - 1,122 contributions

On the comparison with a homestyle or alternative renovation and 3% down there are a lot of things to consider. If I have more concerns to address than I know my conventional renovation loans can handle, I know I have to recommend my borrower go the fha 203k route. Generally speaking, I would often choose the renovation loan route instead for my client because of even slightly less money down and more often no monthly mortgage insurance when 80% loan to value or better, as well as eventually being able to drop mortgage insurance. However, there are good reasons for going with either loan including comparing costs and monthly payment. There are extra costs in the renovation loan too, and not everyone qualifies for it who might qualify for an FHA 203k loan. I, personally, am licensed for mortgage loan consultation and origination in California.

29 days ago
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