Q&A: Is a 6.5 rate high for a subprime mortgage 30 year fixed?

Posted on Aug 29, 2012 in FHA Information

Question by That’s what who said?: What would be the best loan option?
I am buying a home. I will put down an offer for $ 65, order visit this 000. I make $ 30, visit this site stuff 000 a year and have $ 19, cost 000 saved up towards the home. I have a credit score of 725. I was planning on getting a 15 yr mortgage, and putting 20% down, basically because I want as little debt as possible. Today, I was talking with someone who recommended putting down as little as possible (FHA 3% even) and taking out a 30 year mortgage. He said I could use the money I would have otherwise spent on the 15yr, 20% down mortgage to invest, thus making more money than i will pay extra in interest. While his thinking made sense, I just can’t be comfortable with that much debt. I am familiar with other forms of investing. He also reminded me most 30yr mortgages let you pay more than your principle. It just seems like a better idea to get the best interest rate possible (about 4.7% for a 15yr, as opposed to 5.1% for a 30 yr). With the 20% down I would also avoid mortgage insurance. I know i CAN afford the 15yr, 20% down payment, but should I go this route? Thank you!

Best answer:

Answer by R. Guetive
Go for the 15 year loan. You actually pay less for the home cuz you’re not paying all that interest.

I wonder if lender’s are making some kind of commission on the loan and that’s why they encourage to take out large loans.

Know better? Leave your own answer in the comments!

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Condominiums At Kota Kinabalu
Image by thienzieyung
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Dearborn Park High-rise Condominiums
Image by UIC Digital Collections
Title: Dearborn Park High-rise Condominiums
Variant Title: Dearborn Park, try Constructing I

Creator: Gordon &amp Levin
Description: View of the newly constructed Dearborn Park I high-rise condominium constructing (899 South Plymouth Court), viagra buy one of two high-rise buildings in this complex. A big sign for the development’s sales office is in the foreground of the photograph.
Photograph credit: Brubaker, C. William, 1980

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Geographic coverage: Loop (Chicago, Ill.)

Collection: C. William Brubaker Collection (University of Illinois at Chicago)
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Five Condominiums In Kota Kinabalu, Malaysia
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Question by damoore03: Is a 6.5 rate high for a subprime mortgage 30 year fixed?
Thinking of buying a house and I was told my rate would be 6.5 for a 30 year fixed FHA mortgage. Just wanted to know if that is high and what the average rate is.

Best answer:

Answer by Stacie L
No, stuff 6.5 is pretty good. But FHA is not considered “sub-prime”.

What do you think? Answer below!

5avg.rating 15 votes.


  1. If you are sub-prime, that is good. It’s not that far off from regular rates. Do check if you are paying any points.

  2. That’s a really good rate. the national average right now is 4.41% right now though but i think you can only get that if you have excellent credit.

  3. FHA and Subprime.. Not the same at all..

    And the national average for a 30 year fixed with 0 points is nowhere near 4 anything… it is high 5’s to low 6’s right now in most areas.

  4. looks great for subprime……….