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What Can I expect my USDA home loan rate to be locked in at.

I am currently in the process of having the USDA review my application.  It is quoted at 4.5% which seems high to me.  If I have a FICO of 650 and the loan amount is 96,000 what should my interest rate be?
  • March 18 2014 - Tell City
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Answers (8)

I am in Pendleton, Indiana most of us can do better than that. Contact me if you would like another opinion. USDA loans take a little longer to close but we can do it in about 3 weeks. 
  • March 26 2014
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It depends on if you have applied with a Mortgage Broker or Mortgage Banker/Direct Lender. As USDA Direct Lender my rates are at least .250% or .375% less than what you have listed depending on certain risk based adjusters. There are other factors that could make your rate of 4.5% decent l i.e.

1.) Credit Scores
2.) City, County, and State. Depending on the area, your rate could be affected.
3.) Type of property i.e. Condo, SFR, Manufactured Home etc.
4.) Loan Amount
  • March 18 2014
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Yes, 4.5% seems a little high compared to where we are at unless as somebody else mentioned the lender is giving you some lender credits toward your closing costs
  • March 18 2014
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4.5% is a little high for a USDA home loan.  You may not come in with any money, are there any lender credits that your loan officer is providing? 
  • March 18 2014
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0 points are on the loan I believe.  I didn't pay anything down and the PMI is included along with everything else.  And I do not plan to stay there for more than 6 years.  I just want to know what a fair interest rate would be if I have a FICO of 650 and the loan amount is 96,000 with zero down and PMI and closing costs included.
  • March 18 2014
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A point is 1% of the loan amount so if your loan is $200,000 "one point" would be $2,000. Bankrate has a handy guide to commonly used mortgage terms. The lenders on Zillow are great so I'm sure you'll get other answers soon.
  • March 18 2014
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What exactly are you referring to. I'm not sure what a point is on a loan sorry first timer here.
  • March 18 2014
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How many points are on the loan. Adding more points "buys down" a rate with about 4 points reducing the rate by 1/2%. Always try to get quotes with the same amount of points to compare apples to apples.
  • March 18 2014
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