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Answers (14)
- Andrew Martinez, "ccflender"
- Contributions:10
Cathleen,
Homepath rates vary drastically based on the amount you are putting down. You need to compare apples to apples. If you were to put 20% down on a Hompath loan you would find that the 30 year fixed rate is comparable to the interest rate of a conventional loan or an FHA.
If you are looking to only put 3% to 5% down that is where things getting a little tricky and the loan options for you at htis point are FHA or Homepath assuming you are purchasing a Homepath property.
When you do an FHA loan the rate is going to be much better then the Homepath rate when putting 3% or 5% down. You need to consider the cost of the mortgage insurance premium which will be 2.25% of the loan amount due at signing. Also the annual premium is .055% if you put 3% down or .050% if you put 5% down. Also no appraisal ever on the Homepath loan.
As far as being 1.125% higher thats a litte steep!!!! I would say about .750% is typically the ave differance in rate between a 95% FHA loan and Homepath..
Homepath rates vary drastically based on the amount you are putting down. You need to compare apples to apples. If you were to put 20% down on a Hompath loan you would find that the 30 year fixed rate is comparable to the interest rate of a conventional loan or an FHA.
If you are looking to only put 3% to 5% down that is where things getting a little tricky and the loan options for you at htis point are FHA or Homepath assuming you are purchasing a Homepath property.
When you do an FHA loan the rate is going to be much better then the Homepath rate when putting 3% or 5% down. You need to consider the cost of the mortgage insurance premium which will be 2.25% of the loan amount due at signing. Also the annual premium is .055% if you put 3% down or .050% if you put 5% down. Also no appraisal ever on the Homepath loan.
As far as being 1.125% higher thats a litte steep!!!! I would say about .750% is typically the ave differance in rate between a 95% FHA loan and Homepath..
- Andrew Adams, "203K Specialist"
- Contributions:9349
This post was from the 30th but without knowing the loan ot value no way to know how the rate compares. Keep in mind that Homepath loans have the normal LLPA's + additional LLPa's for not having MI.
670 FICO 97% LTV..
.50 for LTV
1.25 for Fico
3.625 for No MI
That is a total of 5.375% in add ons 6.125% does not seem to be an unreasonable rate when you factor in the add ons.
Liz...you need to review the pricing on homepath loans "Homepath Loans Provide the best Rates" Even if you have below market base rates those add ons will do a number on the rate.
670 FICO 97% LTV..
.50 for LTV
1.25 for Fico
3.625 for No MI
That is a total of 5.375% in add ons 6.125% does not seem to be an unreasonable rate when you factor in the add ons.
Liz...you need to review the pricing on homepath loans "Homepath Loans Provide the best Rates" Even if you have below market base rates those add ons will do a number on the rate.
- Pete Semon, "PeteSemon"
- Contributions:18
That rate is a little steep unless you are paying little or no closing costs, contact another broker in your area or two and do a comparison.
HomePath loans require no PMI on 3% DP on homes that you typically would not be able to get any other way due to th eneed for an appraisal. With that said, you are lucky not to be at 6.5% where the majority of HomePath clients are. These are quick and easy loans but they are complex. My guy does them on a national basis for FNMA... if you would like a professional opinion. I can get you in contact with him.
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- Carl Henker, "Carl Henker"
- Contributions:755
With a 15% down payment your rate should be around 5.375% depending on no points or if your are paying an origination fee. Many lender's can offer Home Path do some shopping.
- Liz Maldonado, "egmaldonado"
- Contributions:3
We are approved with HomePath Lenders, so quite familiar with the program. That is high! HomePath loans provide the best rates, and deals around with no mortgage insurance and 3% you can't lose. You definitely want to shop around. And don't forget the 3.5% appliance credit!
- Pat Pribisko, "Pat Pribisko"
- Contributions:1426
I suggest that you compare rate with some local lenders. You can talk tp Loan Officers over the phone to have an idea of what they have to offer. Loan officers in local lenders are very flexible in the current economy. They will talk and/or meet with you on weekends/ after banking hours, & they will come where & when you are available (with some advance notice).
The 6.125% HomePath quote appears high as compared to mortgage loan rates than I am currently aware of.
The 6.125% HomePath quote appears high as compared to mortgage loan rates than I am currently aware of.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
5% vs 15% affects the interest rate by about .375% (or 1.5% in fees).
For 796 with 15% down, the 6.125% quote is outrageous.
Do you have an actual GFE yet? If not, are they quoting that rate as a "zero-point" or is there also an origination charge?
For 796 with 15% down, the 6.125% quote is outrageous.
Do you have an actual GFE yet? If not, are they quoting that rate as a "zero-point" or is there also an origination charge?
- cathleenjt
- Contributions:4
We've talked about putting down 15% to bring our monthly payment down, or putting down 5% and keeping the rest banked for interest. But the lender hasn't said anything about that making a difference to interest rate. Our FICO is 796, and our income and assets are excellent.
- Yousef Abughazaleh, "Mr.shortsales"
- Contributions:242
Seem a lil high but there could be other factors involved. I would get a 2nd or 3rd quote from other lender.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
For 3% or 5% down payment that is a fair quote especially if you have score in the 660-700 range.
I am not a homepath lender, but from my past experience in competing against homepath loans, this does seem excessive. Check out this post from the zillow blog, in the comments sections Jason states
"If you are approved for a HomePath loan, there is no reason to take the FHA loan. Rates and fees are comparable, but the FHA loan will have PMI for the life of the loan. In the loan run, you will pay more for the home. PMI on $200,000 can be very costly."
That staement leads me to believe that your rate for a homepath loan should be comparable to today's rates
- Carl Henker, "Carl Henker"
- Contributions:755
Home Path loans have pricing ads for the high LTV that are being offset with the higher rate. You can pay points and buy the rate down if you choose. What is your down payment?
- Nic Netherton, "Colorado Lender"
- Contributions:7219
No
Our lender is quoting 6.125% on HomePath loan. Is that excessive?
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