30 Year at 6% is that a good deal right now?

Brian in Mesa

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Sure. You're a first time homeowner. Nothing wrong with a 30 year fixed rate mortgage and 6% sounds pretty good. Saw some numbers at 6.11 and higher the other day. Ours is at about 6.75%.
 
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HeavyB3

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Lets?

Does mean we can raid your fridge at any time? Throw BBQ parties?

Im just trying to understand the "lets" part.. :D

If you want to help pay the mortgage, then by all means. Hey, throw in some cash for a pool too. I have plenty of room in the backyard.
 

nathan

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National average is around 5.8% (see bankrate.com), but of course you're a first time homebuyer and probably putting very little down so 6% is fine. Some lenders offset low interest rates with higher fees. What's the APR (fees would be incorporated in this number)?
 

82CardsGrad

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I think so... but lets make sure.

Jump on it... By all accounts, rates are about as low as they'll be for some time to come. The fed is growing more and more concerned about inflation and the rate-cutting days are over...

6% Fixed by any standard is a bargain... jump on it!
 

Brian in Mesa

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If you want to help pay the mortgage, then by all means. Hey, throw in some cash for a pool too. I have plenty of room in the backyard.

LOL - I looked up our house online the other day and it showed our entire neighborhood. On our street we are surrounded by homes with pools. Our house (no pool) is valued at least $5,000 more than each of those homes. :shrug:
 

Gee!

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If you want to help pay the mortgage, then by all means. Hey, throw in some cash for a pool too. I have plenty of room in the backyard.

Party At Heavy's house.. We'll be the family members that mooch ha!
 

jw7

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Not sure. Can't answer that question until you also include closing costs, points and origination fees.

Closing costs are things like registering the title and all the paperwork. Points are money paid up front to lower the overall interest rate. Origination fees are a fancy name of money you pay to the lender for giving you the loan. In most cases, the lender will sell your mortgage to a big corporation to service once you sign the deal. Make sure up front that the mortgage company allow pre-payments without penalty and automatic EFT if that is what you want.

All those numbers wash. By that I mean your mortgage is going to cost what it does. Most lenders will have different rates and give you a higher rate without the additional costs and blend it into the mortgage, or give you a lower rate and you pay more up front.

The good news is all that stuff is tax-deductible.
 

bankybruce

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We had the home builder buy ours ours down and have it at 4.85% fixed for 30 years. Paying $7 less a month to own.
 

Ryanwb

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Are you paying any points?

6% is pretty good if you aren't
 

nathan

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I guess I'm not taking into account property tax and insurance. So poo on me

$800 (mortgage)
$115 (PMI)
$85 (property tax)
$55 (homeowner's insurance)
_____
=$1055/month

Unless I got bad information, the property tax rates in Surprise seem to be lower than elsewhere.
 

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