Profile picture for kakemote

how much i can bargain in current 30 yrs fixed rate

i have ~800 credit score and can put down20%. i have 2 question. Is is wise to pout 20 down in current market?
Can I ask a loan officer cto drop the rate in my case

your suggestions will be valuable
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 15 2009 - Little Rock
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (2)

To answer your first question, is it wise to put 20% down in the current market, it depends on our overall financial situation.  If the 20% is going to leave you with nothing in the bank, then I would say not to put the whole thing down.  My reasoning is because you no longer have a safety net to fall back on should you loose your job, get a cut in pay, etc.  If you can afford the slightly higher payments because MI will be added in to the payment for having a less than 20% down payment, then the peace of mind of knowing that you are safe should overcome this increase.

If the 20% does not break the bank, then yes... put the whole 20% down.

You can always ask for a lower rate, but you may have to pay for it.  Dealing directly with lenders, you may need to buy down the rate to make this happen.  Dealing with a broker, you can ask for the "par" rate.  Most brokers charge a slightly higher rate to make a yield spread.  By asking for the par rate, you are getting the lowest possible rate without the buy down.

As for the buy down itself, you need to do some math to see if it is the right thing for you.  Here is an example of one that I just had the other day: They want to refinance their mortgage of $100,000.  Based on their profile, they had a par rate of 5%.  They wanted to buy the rate down to 4.75%.  To do this, it would have cost them almost $1000 in buy down fees.  They would have only saved $16/month.  This means it would have taken them almost 5 years before they broke even on the initial investment to make up for monthly savings.  Since they did not plan on living there that long, they did not see a reason for doing it.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 15 2009
There is not much room to bargain on rates in today`s environment. The 30 year rate is running between 4.75% and 5.25%. You can buy the rate down but it would make more sense to use it for down payment. Putting 20% down is smart as it prevents PMI insurance and will immediately give you equity for the future. Good Luck.

John Stainbrook
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 15 2009
 
Related Questions
WHAT ARE INTEREST RATES DOING THIS PAST WEEK?
Profile picture for Hamp Yonce
Latest answer by Hamp Yonce
August 16 | 3 answers
how long after a chapter 7 bankruptcy is discharged can you apply for a home loan?
Profile picture for UpstateMTG
Latest answer by UpstateMTG
June 17 | 1 answers
  • Asked by zuser20140617010020132
  • In Mortgage
  • June 17
Can I get a USDA Rural Development loan with 609 credit score
Profile picture for Bart Gabe
Latest answer by Bart Gabe
May 29 | 5 answers
My credit score is 609, can I get a loan for an 85k house in AR?
Profile picture for Eric  Vander Werff
Latest answer by Eric Vander Werff
February 20 | 3 answers
  • Asked by kmariethatsme
  • In Mortgage
  • February 18
Can you still find a lender willing to do usda loan with under 36 month bankruptcy???
Profile picture for Nicolas Ellis
Latest answer by Nicolas Ellis
January 27 | 1 answers
  • Asked by acharles72120
  • In Mortgage
  • January 27
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 7301 Hwy 300, Roland, AR Home For Sale
    7301 Hwy 300, Roland, AR 72135

     For Sale: $90,000

    • Beds: --
    • Sqft: 1092
    • Baths: --
    • Lot: 130680
  2. 4511 N Magnolia St, North Little Rock, AR Home For Sale
    4511 N Magnolia St, North Little Rock, AR 72116

     For Sale: N/A

    • Beds: 3
    • Sqft: 1070
    • Baths: 1.0
    • Lot: 6969
  3. 14023 Pleasant Forest Dr, Little Rock, AR Home For Sale
    14023 Pleasant Forest Dr, Little Rock, AR 72212

     For Sale: $284,900

    • Beds: 3
    • Sqft: 2584
    • Baths: 3.0
    • Lot: 12502