Close

See current mortgage rates on Zillow Mortgage Marketplace

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
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
Why is my profile not showing up on a search for lenders?
Profile picture for Jason Hornsby
Latest answer by Jason Hornsby
January 13 | 2 answers
  • Asked by Jason Hornsby
  • In Mortgage
  • January 13
What can I do to get more (or better) quotes for my loan request ZR-YPGZZRJ?
Profile picture for Michael Ullmann
Latest answer by Michael Ullmann
December 26 2013 | 17 answers
I have FHA Loan in 4th year @ 5.3% I would like to refinance
Profile picture for Jay Armbruster
Latest answer by Jay Armbruster
July 12 2013 | 2 answers
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. 5423 Halifax Dr, Little Rock, AR Home For Sale
    5423 Halifax Dr, Little Rock, AR 72209

     For Sale: $65,000

    • Beds: 3
    • Sqft: 948
    • Baths: 1.5
    • Lot: 7860
  2. 510 Green Mountain Cir APT 96, Little Rock, AR Home For Sale
    510 Green Mountain Cir APT 96, Little Rock, AR 72211

     For Sale: $85,000

    • Beds: 2
    • Sqft: 1060
    • Baths: 2.0
    • Lot: --
  3. 26 Chimney Sweep Ln, Little Rock, AR Home For Sale
    26 Chimney Sweep Ln, Little Rock, AR 72212

     For Sale: $449,000

    • Beds: 4
    • Sqft: 4428
    • Baths: 3.5
    • Lot: 14505