790/800 credit score.. What should today's mortgage rate be?

Question

We're closing soon on a conventional mortgage for our primary residence. The mortgage broker is claiming that 4.25 is the best available rate today. Sounds high to me. Any thoughts on the rate? Am I way off base thinking that's 1/2 to a full point high?

Russell Brazil · Answer

Is the credit score you are giving the actual mortgage enhanced version, and is it the middle score of the worse of the 2 borrowers? Whats your DTI ratio? Is this a Fannie or Freddie product? If it is a Freddie product, why is it a Freddie Product? Whats the price point of the property? Whats the location of the property? There is a lot more that goes into your rate than just 1 credit score.

Chris Mason · Answer

In the last 60 days, I've done 2.875% and 5.875%, >740 FICOs in both of those extremes, both 30YF. So a little more info is needed to be accurate.

I'll give you a hint for the lower end: call 1-800-Marines & be missing a leg when my alma matter is done with you. Hey, if you want the lowest rate/fees possible, that's how you get it. VA loan w/ waived funding fee due to being disabled. :)

Higher end hint: be a flipper or BRRRR-er and tell me you don't care two squats about the rate, you want the lowest fees possible, heck you want the lender to cover 3rd party fees too.

FICOs over 740 are all treated the same; my average "representative" borrower FICO score (meaning: lower FICO score of the 2 borrowers if there are 2) for the quarter to date is 751. Basically, everyone has FICOs in the mid to high 700s these days, it's no longer anything to brag about, it's the standard. Kind of like if I were to brag that I went to college in 2019 -- ok, great, who didn't? But in 1975, that would have been a valid boast and I might have expected that to get me something special.

Something that happens when rates are low, is folks find it more enticing to buy down the rate (discount points). So when folks aggregate "average" rates, the average they arrive at ends up way lower than actual "no points" rates when rate are down. The inverse happens too, most people don't buy the rate down when the 'starting' rate is higher. So when rates drop a bit, the news reports that they drop a lot. When they go up a bit, the news reports that the world is ending.

Kurt Brauner · Answer

I just paid 3.75 on a 30 year conventional loan in Las Vegas.

Noel Serrano · Answer

Recently got my refinancing for a SFR approved at 4.125% 30 years with 484K loan with the broker I have worked with for many years.

Rick G. · Answer

Thanks All.. This is only my second loan with this Broker. I just wanted to do a little checking. "Trust but verify" ! I appreciate all of the responses!

Noel Serrano · Answer

@Chris Mason

Tim Johnson · Answer

Thats about right then if he locks today. I'm not from your area but that loan amount might be throwing you into the jumbo conventional so that could be reason behind it. But its not far off you could probably get quarter point lower but not much.

I would ask him if its jumbo or standard? In my area your jumbo at that level

Rick G. · Answer

Sorry I was cryptic. 20% down making the loan amount $484K. Wife has an 800 and I have a 790 Fico score. It is a conventional loan on a SFH in a guard gated Henderson NV community. Nothing special here. Just a home purchase.

Tim Johnson · Answer

without seeing everything on your file like loan amount and ltv price sounds about right. Rates jumped last week

790/800 credit score.. What should today's mortgage rate be?

790/800 credit score.. What should today's mortgage rate be?

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