Is this a good or bad mortgage rate to have these days?
Me asked:
I’ve got a 7.125% fixed rate on a 40 year mortgage through BankofAmerica. Home value is about 125,000. I bought it for 109. The mortgage is for 90. Is there anything better out there that I could actually get?
Ella
I’ve got a 7.125% fixed rate on a 40 year mortgage through BankofAmerica. Home value is about 125,000. I bought it for 109. The mortgage is for 90. Is there anything better out there that I could actually get?
Ella
April 2nd, 2009 at 12:19 pm
Frederick
Check bankrate.com. Rates will vary depending on your city/state. I think you can find a better rate (low 6’s), but it will depend on your credit. The issue will also be what the closing costs will be on refinancing. Usually you have to get at least a half percentage point drop to make it worth it, your payments will be lower, but you need to stay in the house long enough to recover your closing costs.
April 5th, 2009 at 9:19 am
Tim
It’s not wonderful. I got 5.85% in March. You shoud expect to be in the 6%s now with excellent credit.
April 6th, 2009 at 11:02 pm
Jimmy
I would say bad for the length of the loan you should’ve got a lower rate you are going to end up pay 4x’s the amount you financed.
based on the information you put on here I figured you pay
40 yr loan $567.48 total paid in full $272,390.40
30 yr loan $606.35 total paid in full $218,286.00
20 yr loan $704.54 total paid in full $169,089.60
Seem as if you could have dropped off 20 yr for an additional $137.06 a month
April 7th, 2009 at 10:36 pm
Allison
First of all, the loan officer may not have explained everything. Why are you doing a 40 year term? That is part of the reason for the higher interest rate. Also, how is your credit score? If you have any maxed out credit cards (higher than 50% of their credit limit) it really hurts your score. If you paid down some of the debt you could increase your score and get a better rate.
What else…. are you paying any closing costs? If you are not paying closing costs B of A is paying your closing costs through a higher rate. If you tell them that you want to pay them yourself you should get a lower rate much lower. Since your loan amount is so small your rate would have to be higher to cover the costs .It is a math game that all lenders play.
So pay your closing costs and get rid of the 40 year term. Bank of America is a direct lender so their closing costs are actually lower then if you went through a broker or Bankrate. Check it out and talk to your loan officer again.
April 8th, 2009 at 11:38 pm
Michelle
for 40 years this is about right.
April 12th, 2009 at 7:52 am
Ron
40 years is way to long to be paying off 90k That is over 260k in interest alone.
April 12th, 2009 at 1:36 pm
Edna
Keep it. It is fine..
April 13th, 2009 at 4:08 pm
Norma
There are better fixed rates available at present – some nearer 5.5% - but you would probably pay a penalty for coming out of your existing rate early. I would be tempted to wait until your fixed rate expired and then look around to see if you can find a better deal than you are being offered by your existing lender.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to.