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6.625% Homepath Interest Rate

We close in a few weeks with 6.625% interest rate on 30-yr $396,000 homepath mortgage after 4% down, 3% in Fannie Mae paid closing costs and a 720 credit score.  Lender is local. We got a slightly better rate from a non-local, but wanted to stay local.  We did not see many local lenders advertising for Homepath.  Are we getting a good rate?  This is our only financing option because we already have an FHA loan with another home and most of the 4% down payment is a gift.
  • July 16 2012 - Atlanta
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Answers (5)

Profile picture for Open Home Mortgage
Put another 1% down and do a regular Conventional loan, or go FHA...it will be MUCH cheaper for you.
  • September 04 2012
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You should definitely check around.  Here's a link to the Homepath website where you can search for lenders:  http://www.homepath.com/financing-lenders.html 

Keep in mind that Fannie Mae is funding the loan, and they aren't local. So, you're only supporting the broker that prepares the loan, and are latching yourself onto an expensive loan where the interest goes out of town anyway.  Keep the money and spend the savings at local companies. :)
  • July 17 2012
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Profile picture for Go Huskers
Ouch! Looks like you dozed off for a moment. Better wake up and get a new quote before it comes time to close.

 
  • July 16 2012
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Did you mean to say 4.625%?
  • July 16 2012
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Seems high. I would tell the lender you are going to shop around, and then you should go shop around.  Maybe they will give you a break.  Current FHA rates are no where near that.  Even after mortgage insurance you are looking at 4.75 or so if you add that back in to the APR.  Hope you can let us know what you find.  
  • July 16 2012
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