whatever

What's considered a good interest rate in the US at the moment?

I have had a look at some real estate agent sites and they offer a calculator for working out your possible re-payments but the % they put in varies widely - I have seen from 4% to 8%... anyone got some words of wisdom on this subject?


Many Thank you's.

Manc

just bought a good 3 bedroom house (for 50k )
30 years 6%
mortgage including escrow, $396 per month.

awesome.

whatever

$50??????????????????????????????

Where are the other noughts?
Where do you live??????

Ranjini

Here's is a link which should give you an idea.
http://www.newsday.com/business/ny-b...ness-headlines
We were very lucky to refinance at 4.5% for 15 years when the market bottomed out around June this year...

shakermaker

Refinanced recently - 5.375% / 30 years. Which was nice.

Pulaski

The rate depends on the term, and which type of mortgage you qualify for - there are special deals for ex-military (veterans), first time buyers, low income, etc.

The standard terms are 15 or 30 years, 10 and 20 are also available. There are also "ARMs" (adjustable rate mortgages), which are for example "3/1", "5/1" which means the rate is locked for the first 3 or 5 years, and is then adjusted annually to the current market rate. At the moment the ARMs are vvery low, but the rate you could be paying when you reach the end of the fixed period may be much higher.

Taking a thirty year mortgage and paying down a little extra each month/ year can be a good way to shorten the term. If you are buying in a low cost part of the US (aren't expecting to "max out" on your mortgage payments) do check out the 15 and 20 year mortgages too, as you'll get a rate that is significantly lower and the extra cost per month migh be a surprisingly small price to pay for being free of debt (a novelty in the US!) 10-15 years earlier.

You can find more about mortgages, and see current rates, at this link from realtor.com.

NC Penguin

Give you a clue. K= 1000



NC Penguin

Taffyles

We have a 3.85% ARM 5/1 with a 2% cap annually and 6% cap over life of loan (30 yrs). At the end of 5 years our principal will have been reduced *much* more with an ARM mortgage and with the lower rate now, we can pay extra off each month as well. So even accounting for a possible full 2% a year increase after 5 years- we should pay off our mortgage in 8-9 years total.

30 yr fixed rate morgages are the most expensive really, considering most people move well before they really benefit from the "higher" 15 or 30 yr fixed rate.

Unless you plan to live in the house you buy for 30 years, take a look at ARMs and do your sums.

Manc

that's right, I bought a $50,000 house. 3 bedrooms finished basement. 2 storey 800 (ground floor) sq foot.

I live in Northern Michigan, the house is in a small village near the town of Manistee.

All you fools out in New Jersey and the rest of the east / west coast paying $10,000 per year in taxes, mine are $500 per year.

told you it was wonderful!

Ranjini

Do you have a long commute to work? We have a house down in a small town, but had to buy another in the city as commuting 1 hr. one way in winter can be quite deadly. Get rent from the other house, so it has worked out.

Manc

No, we work about 20 miles away.
we do have one of the few 'good' jobs in the area. very seasonal and low income area.
crime is virtually non existent, just not much to do here without driving 2 hours to Grand Rapids (back into civilisation)

whatever

Do you work in Grand Rapids? Not for Haworth or Herman Miller by any chance??

Manc

nope, work in Manistee Mich.

suebo

If you do not have a credit rating here, depend on coming in on around 8% maybe more. The longer you have been here, the lower the credit rate is. We have been here 3 years and have an excellent credit rate (in my mind-never paid anything late and always pay extra) and we have only just managed to get 6% and had to fight hard for it.

suebo

We have friends in Clearfield Pennsylvania, that paid $56,000 for a lovely 3 story, 3br 2bth house. lucky buggers