I am in college and thinking of buying a house.
What constitutes an excessively high mortgage rate today?
I got an offer of 7.5% APR, which I know is high. But with limited credit history but a great credit score, this is the best offer I have received.
Thank you so much!
You need real estate advice in your geographic area.
The mortgage rate is one thing, but what about the price you are paying? What is the resale value...in college, you will hopefully be moving on....
For these more important issues, I recommend you hire a professional agent..DO NOT RELY on the sellers agent.
When it comes to mortgage rates, what is considered excessively high can vary depending on the current market conditions and individual circumstances. However, in today's market, an APR of 7.5% is generally considered high. The average mortgage rate for a 30-year fixed-rate loan currently ranges between 2.5% and 4%.
To get a better idea of what rates are currently being offered in the market, I would suggest doing some research online or reaching out to different lenders to get rate quotes. You can also check with your local banks or credit unions to see what rates they are offering.
In your specific case, it's important to consider your limited credit history. Lenders typically offer lower rates to borrowers with a strong credit history, as it demonstrates their ability to manage debt responsibly. However, if you have a great credit score, that can still work in your favor and increase your chances of getting a better rate.
Keep in mind that mortgage rates can also depend on other factors such as the down payment amount, loan term, and the type of loan you're applying for (e.g., conventional, FHA, VA, etc.). It's important to consider all these factors when evaluating the overall affordability of a mortgage.
Ultimately, it's a good idea to consult with a professional mortgage advisor or broker who can help you navigate the lending landscape and find the best mortgage options for your specific situation. They will have access to a wide range of lenders and can help you compare rates and terms to find the most favorable offer.
In addition to the mortgage rate, make sure to consider the price of the house and its potential resale value, especially if you're planning to move on after college. Hiring a professional real estate agent can provide valuable insight into the local market, help negotiate the best deal, and consider factors beyond just the mortgage rate.
I hope this helps! Good luck with your house purchase and your college journey!