How to know if a mortgage offering is a good deal?

**Mateo1041** · 04-11-2010, 07:17 PM

Hi all,

My wife and I have excellent credit (790+) and recently made an offer on a $120,000 or so house. The seller is paying closing costs and we're being offered a 4.875% rate (5.621% APR) for $637 per month (principal & interest). With insurance and taxes, this comes to roughly $973 per month. We're looking to put 3.5% down on a 30 year fixed FHA loan.

My question is: Does this seem like a good rate and amount per month to pay? It's been hard to find a good average when researching online. Just looking to get a good deal!

Thanks,
- Matt

**bpoagent** · 04-11-2010, 07:25 PM

Yes, this seems to be correct, but do check if they are charging mortgage insurance

**Mateo1041** · 04-11-2010, 07:47 PM

Yes, it's about $50 and included in the full $973 price.

**maui** · 04-12-2010, 02:39 AM

Mateo, the terms seem reasonable. If you don't mind me asking, where is this property located? The reason I ask is what seems to be pretty high tax rates, so it peaked my curiosity. Thanks.

**Greg** · 04-12-2010, 06:08 AM

Stop looking online. If the loan you have set up is online put it on hold.

Talk to some local lenders. They will be able to match or beat the online lenders and when it comes to closing it is better to have the lender within arms reach, so you can choke them, if things start to get screwy. Not to mention the time difference problems.

I have had too many problems with lenders from other parts of the country.

**Mateo1041** · 04-12-2010, 06:47 PM

Thanks, everyone.

Located in New Prague, MN. Property taxes are around $2,500, although that might go down once the house is sold if we notify the city and press our case. Taxes in MN are way cheaper than WI, though, where we came from. Wisconsin is a tax sinkhole.

Yep, this is from a local lender. Thanks for the advice about online vendors, though.

**Urban Edge** · 04-14-2010, 12:36 PM

Mateo,

The real question now is are you a Vikings fan or a Packers fan?

**Mateo1041** · 04-14-2010, 07:17 PM

A Packers fan living in hostile territory. :-)

**amasters** · 04-16-2010, 01:06 PM

Originally Posted by Mateo1041

Hi all,

My wife and I have excellent credit (790+) and recently made an offer on a $120,000 or so house. The seller is paying closing costs and we're being offered a 4.875% rate (5.621% APR) for $637 per month (principal & interest). With insurance and taxes, this comes to roughly $973 per month. We're looking to put 3.5% down on a 30 year fixed FHA loan.

My question is: Does this seem like a good rate and amount per month to pay? It's been hard to find a good average when researching online. Just looking to get a good deal!

Thanks,
- Matt

The best way to know is to check out other lender's posted rates. Of course, rates fluctuate on a daily basis, and so unless your lender has already locked in your rate it could be subject to change.