my mortgage company offered my a 8.75% interet rate to refi My credit score is 589. My debit is to high?
by Mortgage Rates on Sunday, November 7th, 2010 | 5 Comments
-
Mortgage Info
-
Updates
-
Useful Links
-
-
Tags
2010 About article Auctions bank banks best Business buyers change Credit Debt Equity Financial First fixed Foreclosure From good Government Help Home house Housing interest Loan Loans Market more Mortgage Mortgages Need News options qualify Rate Rates refi refinance Refinancing should this Time variable would-
Meta
That’s about right.
Actually, that’s a really good rate given your credit score.
Your property taxes and insurance are being set-up in an “escrow” account. That’s actually pretty average with mortgages these days. Depending on the bank you may have the option not to escrow, but if that’s the case they normally give you a break on the rate for having escrow (which is probably what they’ve done here).
It sounds like a fair deal based on that credit score alone. However, there are many other factors that will determine how good of a deal that is. What is your Loan to value (how much you are borrowing compared to the value of your home), do you have any money put away anywhere (checking/savings, retirement, IRA, 401k, mutual funds, etc…), what is your debt ratio before paying off those 3 accounts and after paying them off, how much are your closing costs? Most people like to have their insurance and taxes set up in an impound account and there is nothing wrong with that. Actually most lenders require it if your LTV is over 80%.
I suggest you take a look at http://www.restructureyourmortgage.com we can not only beat that interest rate but have you closed in 7 days. I wish you the best of luck.
What DZWRECK said is 100% correct… It’s not all about your score… It’s about what made your score the way it is… Do you have money put away somewhere… How much do you owe on your home and how much is it worth…
I can tell you right now that if you have at least 20% equity in your home, have a few thousand in the bank and no judgements or major no nos on your credit report, that rates a little high…. otherwise, it sounds about right.