Is 5.25 % mortgage for 80 K on a 160 K home for 30 years with no points a good deal today?
by Mortgage Rates on Saturday, November 20th, 2010 | 4 Comments
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If you aren’t paying any fees that sounds like a pretty good deal. You might call some of the big banks like Bank of America or Wells Fargo, also check rates online at bankrate.
Watch fees as well as rates!
That does sound pretty decent relative to what I’ve seen out there, especially with no points. You might be able to shop around and find a better deal. $80k isn’t an especially huge amount; if you can wing an extra $180 or so a month, a 15-year mortgage will get you a better rate and you’ll save tens of thousands in interest.
First of all, “internet” lenders are not unreputable; having a website does not make one an internet lender, assuming there is a brick and mortar to back it up it’s no different than Joe down the street. Secondly, if you got this with NO FEES, then it would be excellent, if you got this as NO POINTS, then it’s terrible. You need to clarify what it is you got, they are very different. You can get 4.75% with no points today.
As a Mortgage Banker based on what you said I would say its a fair deal. If you really hunted and searched, you could I am sure find a slightly better rate but there would most likely be fees. You see this is how pricing on loans work. The higher the rate generally the lower the fees because the lender is compensated by what is called a service release premium. Its great if you are strapped for cash to close. However, there is also an adjustment to the pricing when the loan about is below 100K.
You know, you can always ask the bank if they can give you a better rate with no increase in fees. All they can do is say yes or no (then risk loosing your business). Make not mistake, they want your business, especially if you have excellent credit. Banks as you know, are in Business to do loans.
Hope this helps.