What type of rates are USDA mortgage rates at now?
Has anyone recently bought a home and financed using a USDA mortgage? What kind of rate did you get? Do USDA mortgage rates vary when going to different banks? I know there are multiple factors that play into the rate but I have great credit and am looking to put 0 down.
And I put over 20% down on my first house, payed my mortgage on time for 5 years and still have to come to closing with another 10% to get out. That's my reason for not wanting to put money down again. Also with today's low intrest rates, I could get a better return on my cash if it wasnt tied up in a house.
- chatsplasLv 78 years agoFavorite Answer
0 % down is a BAD idea, and largely impossible except for VA and some USDA loans
One of major causes of mortgage meltdown
It means buyers have NO ownership interest, no equity in home
It means buyers will pay for home multiple times over, due to massive amounts of interest paid over life of loan. . . .run some mortgage calculators and see amount of interest paid over loan life
It means buyers will build equity in home very slowly, instead paying interest on interest on interest
It means buyers pay not only PITI, but also PMI, substantial extra payments
Conventional rates are 3.5% for those with excellent credit, and FHA requires minimum 3.5% downSource(s): real estate investor
- 7 years ago
In kentucky the direct usda loan will lend 80,000-147,000 ..We are approved for 95,000 at 3.2% ...BUT we are looking in a different direction since we want a cheaper mortgage