Interest rate with good credit.

**primetime** · 08-19-2008, 06:07 PM

Looking to invest in a first home. First time buyer here. Recieved quotes from 3 different lenders. I'm surprised that 6.375 is the best that the banks can do, with a 1-0.5% origination fee on a 30 year fixed. I have 0 debt, no car payment, my credit scores are 806,802,806 and my yearly salary is over 80K gross. Perhaps I can get a better rate with 20% down?

**stan Jensen** · 08-19-2008, 07:34 PM

Believe it or not that's a good rate for a conforming loan and it's going higher. Lenders are trying to recap their losses . . .

**jamesww** · 08-19-2008, 08:42 PM

Not only are they trying to recoup loses but the interest rate risk is very high right now as many nations are experiencing high inflation.

**primetime** · 08-19-2008, 09:02 PM

Should I wait, or is it a 50/50 gamble? Before the election? After the election but before April to get the 7500 tax credit? I don't HAVE to buy right now, but it would be nice to not give money away every month because of living in an apartment.

**01formulaaj** · 08-20-2008, 06:06 PM

Originally Posted by primetime

Should I wait, or is it a 50/50 gamble? Before the election? After the election but before April to get the 7500 tax credit? I don't HAVE to buy right now, but it would be nice to not give money away every month because of living in an apartment.

Sounds like it's right in the ballpark. I just locked in a 6.5%, 0 down, 0 loan origination, and .125 points coming back to me on my first ever home purchase. You might be able to do slightly better because your credit looks a little cleaner than mine (high 600's), but most likely not much.

Also, it was my understanding the 7500 tax credit was more of a tax "loan", as in, you had to pay it back. Any insight into this?

**primetime** · 08-20-2008, 08:48 PM

It's a 0% intrest free loan payable at $500 per month over the next 15 years.

**Nco** · 08-28-2008, 08:09 AM

I am going to be a first-time-home-buyer too, looking to get into something before ~march 2009. I am going in to get prequalified next week to see what I should be looking at.

With your stats, how much of a loan did you qualify for?

Also, how does that 7500 0% interest government loan work? $500/month for 15 years doesnt seem right... was it $500/year for 15 years? Where do I sign up!?

**primetime** · 08-28-2008, 11:17 AM

It's $500 a year, not per month (small typo

) No need to sign up, you just claim it on your taxes as a credit. I'm not sure how much I qualified for as a max, as I only asked what the rate would be on a $215K loan, 30 year fixed.