So, what's a good debt/income ratio?

[RPM]

7.25% when fixed is UNDER 6% is NOT a good deal. on a $200,000 loan, that is a difference of about $150 per month for 30 years. a total of $54,000.

as far as getting 2.25% adj at a 620 score, i dont know where you can do that. some of the best deals around right now for perfect credit are around 3% on an arm.

besides, arms are not a good deal right now anyway unless you are buying just to resell in the next two or three years, or your credit or income isnt good enough right now to get a fixed rate.

 

[sherman]

7.25% is not good for someone needing 100% financing? Not sure what world you live in!

2.25% is an option arm

 

[sherman]

RPM, I;m not trying to come across as a know it all, i just hate to see peopel get bad information

 

[chalkeater]

Sherman,

No offense, but 7.25 % interest rate on a 30-year conventional loan is NOT a good rate at this time. Many rates today, can be found below 6 % and this does NOT include any discount points.

I did stated income on my home mortgage, but I was told by my lending company (Countrywide Home Loans) that the minimum credit score for stated incomes was 720. Of course, this threshold may differ from lender to lender, but 720 was what Countrywide considered excellent credit (tier 1).

RPM is VERY knowledgable about this subject. Either he's in the industry or he reads a lot at bankrate.com!

Take care,

Chalk

 

[RPM]

7.25 is NOT good even for 100% financing. there are many ways to get around closing costs now a days. the easiest is to over pay for the home and roll them in.

with a 680 or higher score, and a reasonable debt to income ratio, you will have no problem getting prime rate, which is UNDER 6% right now.

fwiw, you are the one giving bad info right now.

 

[sherman]

7.25% with a 620 score STATED is a GREAT deal!
Minimum score for stated is not 720, not even for Countrywide...like I said I hate when people get mis information.

I am also in the business and like to think I know a little....

 

[WildBill]

Depends on the market Sherman and if the loan is adjustable. That is why I said "can be" because in markets where the prices aren't in overdrive, the subprime loans are very expensive. I know 9% is the going rate for a 644 for a loan I saw written in Missouri. My good buddy is a mortgage financier and works with people with such high rates by doing some structuring that reduces their costs for a commission.

 

[sherman]

they had a 640 score, not 680! (sorry i put 620 in my prior post, i meant 640)

 

[sherman]

so RPM, if someone came to you with a 640 and needed 100% financing and coudn't prove their income, you could BEAT the 7.25% I gave them?

 

[RPM]

if they came to me with a 640 score, i would help them get their score over 680 before doing the loan.

but with those circumstances, no, 7.25 isnt too bad i guess.

but wouldnt you agree that its better to get their score up before applying?

 

[RPM]

sherman,

for instance, someone with a 640 score, and very little credit cards, you could get their score up to almost 680 just by getting them a card with a $5,000 to $10,000 limit.

 

[RPM]

btw,

not being able to prove income is the hard part, not the needing 100% financing.

 

[sherman]

No I don't agree RPM. Had I come to you with a 640 score say 2 years ago and you advised me to wait and bring my credit scores up to a 680 or higher, in the time it would take me to do that, the price would have went up in value ALOT more than the higher interest rate would of. Besides you can always refinance you can't ever buy the home for less money down the road.

P.S. I find it hard to believe that someone calls you for financing with a 640 and wants to buy a house you turn them away.

 

[RPM]

not talking about turning anyone away. it is not hard, nor does it take long to raise credit scores. the majority of the time, scores can be raised significantly within 60 days, which is plenty of time usually.

 

[RPM]

advising someone to take a 7.25% loan is not good info.

 

[sherman]

I agree that NORMALLY is plenty of time but I still diagree. ANYONE that knocks on my door and says they want to buy a house, I will try to help them no matter what their score is.

 

[sherman]

Advising someone to buy a hosue with a rate of 7.25% is not good info? Again, what planet do you live on? Let me get this straight, you ARE in the business? or do you have an uncle in the business? you seem to have the people here at therx fooled, but don't include me in that.

 

OK guys wait I'm confused (sorry to interrupt). I haven't seen a 600 on my credit scores since the ice age thanks to some poor planning in the mid 90's but is it better to pay off your outstanding debt or to go in with a larger downpayment? I'm confused.

Thanks for your comments...I really need to get serious about getting my reports in order.

sb

 

[RPM]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by sherman:
I agree that NORMALLY is plenty of time but I still diagree. ANYONE that knocks on my door and says they want to buy a house, I will try to help them no matter what their score is. <HR></BLOCKQUOTE>


have you ever tried helping them get their score up?

 

[sherman]

Yes, if that's what THEY want. 99% of people looking to buy a house choose to pay a higher interest rate than wait to bring their scores up.