mortgage interest rates

[momz]

I was talking with a casual acquaintance briefly today. She was in a hurry so couldn't talk long as she needed to go sign papers for her refinance of her mortgage. I asked her what the interest rate is these days. She said her new mortgage is at 8%! What are you seeing in your area for interest rates?

 

[ronandannette]

Wait - what?!? 8% sounds insane. Granted, mortgage rules in Canada are a bit different and generally have more stringent qualifying but even so, our rates usually run fairly close to one another. Here are today's rates from the country's 5 largest chartered Banks. It's very likely one could even do better through a broker:

 

[sam_gordon]

8% seems awfully high to me. Here's a quick google look at my state...

 

[Mackenzie Click-Mickelson]

I'd need more information but not even the national average is at that rate or close to it.

Maybe your friend has something going on you're not aware of.

 

[GreatLakes]

Are you sure it was a refinance and not a second mortgage? A 2nd lien position mortgage will come with a higher rate due to the added risk and while 8% is still high for even that it might be due to other factors. 8% in that situation isn't out of line with the current state of affairs.

 

[Meriweather]

Here 4.6-5.8

 

[dvcgirl67]

Are you sure it was a refinance and not a second mortgage? A 2nd lien position mortgage will come with a higher rate due to the added risk and while 8% is still high for even that it might be due to other factors. 8% in that situation isn't out of line with the current state of affairs.

Yup, that's what I was thinking. I read somewhere last week...WSJ maybe, that HELOCs are now over 7% for a 20 year pay-off. So, depending on credit...8% is not out of the ballpark at all.

 

[luvsvacation]

We refinanced in January for 2.75 I had no idea interest rates would be heading up the way they have! I’m so glad we are locked in and only 10 years left to pay! I looked at the bank online just now and they are at 5, that’s almost double in just a few months!

 

[mrodgers]

Bought a used car a month ago, rate was in the realm of 4.5%. Helped someone buy a used car yesterday, her rate is 6.5% a month later. Similar income, similar credit rating. My loan was for more money after a down payment between the trade and cash equal to her total price of the car minus $1000 trade.

 

[john7994]

Yup, that's what I was thinking. I read somewhere last week...WSJ maybe, that HELOCs are now over 7% for a 20 year pay-off. So, depending on credit...8% is not out of the ballpark at all.

Agree, when I saw it earlier - was thinking HELOC

 

[leebee]

We rolled over our HELOC in January. Rate went from 5% down to 2.3%. I'm feeling pretty good about that as the combined estimate for replacing our furnace (converting to gas) and repairing the retaining wall is $23456

 

[CdnCarrie]

We just resigned for 5 more years- and it will be paid off woot!

Our rate is 2.4%!

8% is insane!

 

[Skippy918]

How’s her credit score? Poor credit is going to give you higher rates. Those good rates you see out there are usually for A and B credit ratings. C,D, E or no score you are going to pay much higher interest rates.

 

[Pea-n-Me]

They can also be higher if she put down less than 20%.

 

[Mackenzie Click-Mickelson]

They can also be higher if she put down less than 20%.

Doubtful It'd be that high under that circumstance alone.

 

[Pea-n-Me]

Doubtful It'd be that high under that circumstance alone.

Maybe I should’ve said ”in addition to other factors” like a lower credit score. It’s like buying a car with bad credit. You can, but they’ll get you good on the interest rate.

And just offering that as one possibility. We had a one point higher interest rate ourselves when we put down less than 20% on our home originally, just to get in.

 

[EACarlson]

I close in three weeks on an FHA loan with 2.25% down and our rate is 5.75%, I think next year it will be 8, but it's not there yet in anyplace I'm aware of.

 

[RamblingMad]

Sounds like your friend has bad credit.

 

[goofytinkerbell]

1

 

[momz]

OP here. I’m happy the rates are nowhere near what she said. I think either her credit score is in the gutter, or she has no idea what she’s talking about. Either or both are likely to be true.

I’m kind of floored by how financially inept she must be.