I’m in the market for a new home and planning to sell my current one. My credit score is over 780, which I thought would get me a great mortgage rate. But when I talked to a lender, they quoted me 7.5% for a 30-year fixed conventional loan. This seems high compared to the rates I’ve seen online, which are around 7-7.2%.
The lender mentioned stuff like UMBS, bp, and points adjustments. I’m lost with all these terms. I thought my high credit score would lead to a better rate, but it doesn’t seem to make much difference.
I’m putting 20% down on a $600k house. We need to move because of our child, so waiting for rates to drop isn’t an option.
Can someone explain why my rate isn’t lower with such a good credit score? What do all these mortgage terms mean? How can I get a better deal?
Update: I got a quote from another lender for 7%. That’s more like what I expected. I guess shopping around really does help!
Hey there! Shopping around really paid off, huh? That’s awesome you got a better rate! Have you considered adjustable-rate mortgages? They might offer lower initial rates. What’s your timeline for staying in the new home? Shorter-term loans sometimes have better rates too. Just curious about your thoughts!
hey chris, glad u found a better rate! shopping around is key. those terms are confusing AF, right? UMBS and bp stuff is just market jargon that affects rates. even with great credit, other things like the economy impact rates too. keep comparing offers, and maybe look into different loan types. good luck with the move!
I understand your frustration with the process. The current market conditions significantly influence the rates lenders offer, regardless of an excellent credit score. High credit scores help, but other factors like loan type, property value, and broader economic trends also come into play. Terms like UMBS and basis points represent market mechanics that modify a loan’s cost. It’s good to see you got a lower rate elsewhere; comparing different lenders can reveal more favorable options. Adjusting loan details might also improve your terms.