We just bought a house. Our fixed interest rate is 5.5% for a 30-year mortgage. Is this good?

Update:

We went with a VA loan which means we paid no points or down payment.

Update 2:

We went with a VA loan which means we paid no points or down payment. We are also first time home buyers and will receive the $8,000 tax credit.

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  • 1 decade ago
    Favorite Answer

    It's awesome - one of the lowest rates in the last 40 years. Now just make sure to pay it on time every month so you aren't in a situation where you could lose the house and you will be fine.

    The only sort-of bad thing about a loan this great is that if you want to move, you can't take the rate with you, so it will make your next house more expensive if it has a higher interest rate.

    But, that's a maybe far in the future. For now, enjoy your house.

    When you get the $8,000 tax credit back stick it into a safe savings account somewhere and keep it there for the day when something needs to be repaired or replaced in your house. Many first time homebuyers underestimate the ongoing maintenance costs of owning a house, and underestimate how many mechanical things can break over time. Having this safety net savings account will be a blessing on the day you wake up to discover something big has broken.

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  • Anonymous
    1 decade ago

    Wow, that is a really great deal! You must have great credit. Also, be sure to review your mortgage terms and agreements for any loopholes they can pull on you though. If your credit rating goes down too much at anytime or you are late/miss on any payments, they could charge further fees that can be painful to your mortgage payment and certainly hurt your credit score - just like credit card companies do. Though it may only seem like a little almost worthless of notice sort of change at first (even as simple as maybe your payment going up by a penny a month), they will keep a constant eye and "review" often enough over the 30 years that it can hurt quite a bit in the long run overall. My parents made this mistake with their first house after my father retired from the Army and got such a loan, then they started getting into credit problems and also hurt themselves by getting a second mortgage, thus making their $500 a month payment of 14 years ago turn into almost $900 before they knew it.

    Congrats and Good Luck in your new home!

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  • 1 decade ago

    Yes, that's a Great rate.

    A 0% down loan is good in getting you into a home, but BAD in that you have NO equity, NO ownership interest in your home. Hopefully you are putting Most or ALL of the first time buyer's tax credit into the home as additional principal payment. It will give you equity in your home and GREATLY reduce the amount of interest you pay over the life of the loan. Otherwise, for the first 10 years you are paying INTEREST, Interest, Taxes, Insurance every month, and just pennies in principal. You will pay up to 10 times the purchase price of the house with all the interest you have agreed to pay UNLESS you make additional payments of principal, and those made during first 5 years have HUGE impact on how much you pay totally.

    Source(s): real estate investor
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  • Anonymous
    1 decade ago

    It doesn't get any better than a VA loan, esp topping it off with a first time home buyers. I took out a second VA load after selling my first house but the guarantee wasn't as high as the first one. But mortgage companies and big banks love them. Mine has been bought 2 or 3 times and now Chase has it.

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  • 3 years ago

    hi rlc - i'm hoping you examine this at present. The very own loan sponsored bonds are procuring and merchandising bigger and pricing is actual extra suited at present, Friday the twenty eighth. communicate on your guy or woman loan adviser and ask what his take is obtainable. a genuine very own loan expert examine the markets and subscribes to centers that provide suggestion on whilst it is great to waft (wait on industry transformations) and whilst to fasten. yet 5.875 looks like an extremely aggressive fee. additionally, be valuable you ask on your sturdy faith Estimate and fee lock confirmation. Your GFE would desire to provide help to already know if the fee is costing you something and your fee lock confirmation is purely that, a paper from the lender making certain the fee for a volume of time. sturdy luck!

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  • Anonymous
    3 years ago

    It's possible yes

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  • 1 decade ago

    pretty good for 30 year assuming you paid no points.

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  • Anonymous
    1 decade ago

    You did very well. Your rate is among the lowest in the industry.

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