|
|
| *Loan,banking and credit>>>credit score |
My credit score is 760. What type of mortgage rate will I get in Illinois for an interest only 5/1 year arm? |
Is this everchanging real estate and mortgage lending market, its hard to tell what will happen next month. I am looking to purchase a home in Chicago in approximately 3 months. My credit score is 760. What type of interest rate will I get on a 5/1 interest only arm? You have an excellent credit score and should be able to get a very good interest rate with that score. I am not against ARM products as most invdividuals are in this forum. What you need to know about ARMs are that they will go up sooner or later. You should know the adjustment period, how ,much your payment will adjust each period of adjustment. Now know this can you afford the loan product with the increase in the monthly payments. That is the cause most people fail in ARMs, they don't understand the terms and other things you are required to know about your about your ARM. Make sure you get an underestanding from your mortgage broker as to what the loan adjustments are. Now once you sign loan docs, make sure they match what your mortgage broker has indicated they would be. Mortgage rates adjust on a daily basis and even sometimes before the day is complete you can get a rate decrease or increase. speculation is just that speculation. So the first thing you should do is contact a mortgage broker so you can complete a loan application, after which he will run your credit report. This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore. Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment. There are lots of documents and information the mortgage broker will need. I will give you a few to get you started. #1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment #2 One months of pay stubs from all that are going on the mortgage. #3 Two years of federal income taxes and W-2s After discussing the best loan program for you and agreeing on the program you want, the mortgage broker will issue you a pre-approval letter. Don't forget your good faith estimate (GFE). This will give you an idea of the cost of your loan. That is in addition to any down payment how much additional cash you must bring to the closing table. In order to preclude PMI when a lender will finance 100% of the house you are buying the mortgage industry have solved that problem by offering a 80/20 loan. Don't be afraid of them. You have to understand that the increase in payment if the loans are adjustable. Your first mortgage (80%) might be a fixed product, while your second (20%) could be an adjustable product. If you don't understand the product ask your mortgage broker and don't leave until he/she has explained it to your satisfaction. Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign. The mortgage broker will order an appraisal of the house to prove the value. Once all the documents necessary has been collected the mortgage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile. Don't sign the loan docs if anything has change from what the mortgage broker explained to you. Call and get an explanation. I hope this has been of some use to you, good luck. "FIGHT ON" All you seem to hear about these days is credit score. Remember credit score is just one part of what goes into the approval process. Your credit score is very good, but the type of rate you get will still depend on how much you can put down, and your income relative to the home you are looking to buy. Assuming you can get 10% or more down, and your income is sufficent you will get a very good rate. But to be honest, you really shouldnt go for a ARM these day. Thats how most people are getting burned. 5/1 arm is a very risky loan. With that high credit score, I would go for a 30 year fixed. I live in NJ, my credit score is 785, and I got a 6.125% rate on a 30-yr fixed. 5/1 ARM means that you will have a percentage of 5% with 1 point...so you're looking at an initial percentage of 6%. ARM's are risky if you plan on staying in the house for a while...the interest rate WILL fluctuate, especially with the housing market the way it is right now. You might be better off getting a fixed rate mortgage...if you can't afford the payments on a regular 15 or 30 year, some mortgage company's now offer a 40 and a 50 year mortgage. Your credit score is really good, so you will probably get approved for whatever you want with a fairly low interest rate. Interest rates are based on how big of a risk to you are to each investor. Your credit history, the loan amount compared to the value of the home(LTV), the loan amount itself, if you can document your income, how much liquid assets you have...are just a few of the factors that go into determining what the interest rate you pay will be. If you are a first time home buyer-or havent owned a home in the past three years then I wouldn't suggest a 5/1 loan program. There are many more options out there and with current market conditions, It would be beneficial to be open minded and weigh all of your available options before being stuck on a specific program. Alex Myers Synergy Mortgage Group (877)428-3328 ARM products are not recomended now or within the next year! you can Just as god a rate without any risk by going with a fixed rate mortgage http://www.directlendingplanet.com... |
| Tags |
| credit counseling credit debt credit line credit repair credit report credit score credit card online bad credit loan bank of american bank of china |
SiteMap--Copyright/IP Policy--Contact Webmaster--Resource of HR For personal non-commercial use only. |