Posts Tagged "6.5%"

I am applying for a FHA home loan. The mortgage broker says the rate is 6.5% but the document states APR 7.5%?

on Sep 19, 2012 in FHA Information | 4 comments

Question by George: I am applying for a FHA home loan. The mortgage broker says the rate is 6.5% but the document states APR 7.5%? The broker says my rate will be around 6.5% but they have to state APR 7.5% because it has to includes Mortgage insurance because of not putting 20% down. Is this correct? I understand I have to pay the PMI but should my APR be around the 7%? The loan is around $ 400K 3% down. Best answer: Answer by Beverly SIt’s not just the mortgage insurance- it’s any closing costs involved which are classified as interest- so any points etc. are added to the APR & that rate is your 1st years combined rate. However, site a whole 1% difference seems excessive to me. Mine are usually about 1/2% higher. Sounds like they are hitting you pretty hard on closing costs. Also, mind I don’t like the sound of your broker saying your rate will be “around 6.5%” tell him to Lock it- FHA rates are rising 6.5 % is actually really good right now. Good luck! Give your answer to this question below! I am applying for a FHA home loan. The mortgage broker says the rate is 6.5% but the document states APR...

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