Hey everyone, my mom and I cosigned on a small home together (it’s for me while I’m in college, and it’s cheaper than renting after we made a down payment). We got a 6.375% rate last year. I have a 750 credit score and my mom’s is in the 800s. We’ve thought about refinancing but were told that 6.375% is already considered low right now and that it might be hard to get a better rate. Is that true?
A 6.375% rate is actually pretty good, especially with the way rates have been going up lately. Many lenders are offering higher rates, and you often need to buy points to bring them down. If someone told you 6.375% is low, they’re probably right for the current market.
I’d hold off on refinancing until rates drop significantly, but here’s a link for today’s rates from the top 5 banks if you want to compare.
@Nile
Thanks! It’s really reassuring to hear that. I don’t always trust what people in finance tell me, so it’s nice to hear it from someone without a stake in the deal lol.
Ray said:
@Nile
Thanks! It’s really reassuring to hear that. I don’t always trust what people in finance tell me, so it’s nice to hear it from someone without a stake in the deal lol.
I locked in the same rate—6.375%—when we bought back in January. It’s a 30-year conventional mortgage, and it’s probably the best rate you’ll see for a while. Some credit unions might offer lower rates, like around 5.9%, but that’s rare right now.
If it’s a conventional loan, 6.375% is pretty good. If it’s FHA, it’s even above average.
Darin said:
If it’s a conventional loan, 6.375% is pretty good. If it’s FHA, it’s even above average.
Oops, I forgot to mention—it’s a conventional 30-year mortgage.
I’m trying to lock in today, and I’d be thrilled with 6.375%. Rates have been creeping up, and it’s looking like 6.5% or even 6.625% for me, and I have similar credit scores and no debt.
6.375% for a 30-year conventional mortgage is a solid rate. You made a good choice going for that instead of renting.