No. of Recommendations: 0
Does it matter how high an interest rate you are offered on a home loan?

I recently completed graduate school and have a pretty decent job (%60,000/yr). My housing expenses will be taken care of by my company until mid - january. If I buy within one year, my closing costs will also be taken care of.

However, my graduate student years have taken their toll on my credit rating. I currently teeter-totter around 600. I also currently have very little for a down-payment, so the rates I'm hearing are in the 6-8% range (or higher). Because I'm looking for something that costs less than $130,000 my payments would be less than $1000, approximately what I'd be paying in rent. I've paid mucho on rent in the past and have nothing to show for it. Doesn't it make sense to try to get into a house right away? I plan to live in this area for at least five years. Would waiting six months to buy make a difference?

Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.