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Is a 4.5% rate good for my situation?

Hey Everyone, My wife and I are about to purchase are first home. I have been approved for the loan, but want to make sure we are taking the best path, so I would love to hear any thoughts...I will be putting about 12-15% ($40k) down, mortgage is only going in my name as my income is high enough and my wife's score is a tad lower, my avg score is 710, we are doing a 30 year fixed. The broker is giving me a rate of 4.3-4.5 but is leaning more towards 4.5 Is this decent for my situation? He also explained the home equity line instead of doing PMI which I am sold on. I would plan to pay the PMI or higher interest equity line off within the first year by paying more towards the principal. I just like the idea of having a low interest loan on the side if everything hits the fan. Also he didnt give me any info on closing costs, is a large amount paid to the broker?Sorry for the newb questions I'm freaking out a little over this purchase and dont know anyone with any expertise. by jamesk_698_780 from Des Moines, Iowa. Apr 27th 2012 Reply


Nicholas Smith (Best_Broker)
#9 ranked lender in Iowa - 1 contribution

No sir, every interest rate that I have locked this month has been below 4%! Please call my office at your convenience, 515-727-6126, I am a licensed mortgage broker in West Des Moines and I have the lowest interest rates and closing costs available on the market! Have a good weekend

Apr 28th 2012
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Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 239 contributions

James,All answers below are accurate. You should be able to get a lower rate. Costs need to be disclosed to you on the GFE. I would seek another quote as this one's determined to make a bundle off of you!

Apr 29th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Probably not. Before you commit to anything, get a copy of the Good Faith Estimate, The Truth in Lending Disclosure and the Details of Transaction breakdown. If the guy you are talking to can't or won't provide you with these three documents, then he's hiding something, in my opinion. Note rates on a conforming first mortgage with a score of 720 or better is closer to 4.00 with no discount points and 3.75 with one discount point. You are going to have some pricing hits for a sub-720 score, but a good Mortgage Banker/Broker should be able to identify what little things you can do to tweak your score up those few extra points to get the better pricing. Also, check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org Feel free to forward additional question to be directly through the Lender411 Portal. Don't apologize for being a newby. This is a big commitment and you have every right to be cautious. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Apr 27th 2012
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David Baker (David Baker)
#1 ranked lender in Iowa - 51 contributions

Get another opinion immediately. Run-do not walk. The other answers here are terrific advice - find a local broker and get all of your option and a lower rate. I can see that there at least two scenarios that you have not mentioned that may be more beneficial to your situation.

Apr 28th 2012
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James, I can do everything in 1 loan together for you at a lower rate than you were quoted and you will not have any monthly PMI or a 2nd mortgage. Call me at 515-321-7041 Thans Justin.

Apr 30th 2012
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