30 yrs fixed at 5.625 in Jan 07, is that good enough?
Question:my friend told me she has just bought a new house in Jan 07 and the mortgage rate she got is 5.625 30 yr fixed for 410k loan, the price of the house is 530k. was that a good rate?? i thought it's quite high cos i thought i came across something like 4% unless i was mistaken for something else. just out of my curiousity, is that a good rate? or if you had also bought a house recently, i'll be curious to know what rate are you guys get for 30 yr fixed.
Answers:
For a 30 year fixed, 5.625% is a very good rate.
When you see a rate advertised as 4%. that is just a teaser rate that does not exist. Essentially anyone who advertises a rate like that is engaging in "bait and switch" advertising." I guarantee that you will not get a 4% fixed rate on a thirty year loan at close of escrow.
You need to look for the "Annual Percentage Rate" or "APR" to tell you what the real rate is.
It really depends on her credit scores. that will decide her interest rate
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