Posted by stated on December 29, 2005 at 17:01:11:
No, not because it’s a stated loan per se. Unless you really don’t have the income, it’s just likely you ran across a greedy loan broker. They are especially prevalent in the sub-prime marketplace. If you do have the income, seek out a reputable banker/broker.
However, what is your stated income exactly? Do you have tax returns or profit and loss statements to back up your claim? Stated loans are for people who actually make an income - don’t commit fraud by stating false figures even if an unscrupulous broker goes along with it. If you actually don’t have the income you should seek out a no income/no asset loan, not a stated income loan. These loans can run as high as 3 percentage points higher than regular rates which could put you into the 9% range. However, if you are putting 10% down and you have good credit, I’d be searching and negotiating hard for a better deal than that.
You also might consider getting a first place loan of 80%LTV without PMI which also should have a lower interest rate and get a second place loan for the extra 10%, also without PMI but at a higher interest rate which you could possibly start to pay extra on to get rid of it quickly. Since interest rates are low right now it would be better to get the bulk of your mortgage at the lowest rate you possibly can.
I’m not understanding 3 points on an owner occupied property. I do know that the interest changes with the pre payment penalties. Is there a reason why you want no pre payment penalty? Do you have a copy of your credit report? 9% interest on owner occupied seems high with your credit. The high interest may come from some variables that I don’t know.
If you have any questions or need any help, let me know cynthia@skyviewmail.com
Re: 9.3% rate AND 3 points: Am I paying too much? - Posted by RJ Baxter
Posted by RJ Baxter on December 28, 2005 at 19:22:37:
What is the loan amount and what % LTV are you borrowing? Is this 100% financing, one loan? It seems like an extremely high rate, but it depends on a lot of factors.
Re: 9.3% rate AND 3 points: Am I paying too much? - Posted by J. Bolden
Posted by J. Bolden on December 28, 2005 at 16:55:49:
With a 680 credit score i will seek out another broker or lender. Your credit score is good for a lot of better loans out there. Try also to avoid prepayment penalies or at least find out how much is the penalty and decide if you would’nt mind paying it down the line.
Re: 9.3% rate AND 3 points: Am I paying too much? - Posted by DeeDee
Posted by DeeDee on December 29, 2005 at 19:25:33:
I agree with Phil, it depends on where you are located, but that still seems kind of high. I’ve got a no doc loan on an investment property at 7.6%.
9% and above usually gets into higher risk borrowers. But if you are putting down 10%, I just don’t see why on an owner occupant property your rate would be so high. I’d shop around, see if you can get a copy of your credit reports and take them to another lender. Try going directly to a bank, their fees are usually much lower.