What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?

I am looking for a first home. I am four years post-bankruptcy. Sure, I could continue to try to build stronger credit, but life is short, and home ownership is an important goal for me to reach in the near future.





In my area, I have heard that first-time home owners can get rates for 30-yr mortgages around 5.8%. What kind of rate can I expect to qualify for? I know it depends on lots of other factors I'm not going to get into here. But what is a rough estimate? 7%? 9%? 12%?





I have no savings for a downpayment (a strike, I know), but my debt-to-income ratio is reasonable.What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
You're right on track with your own assesment. The ';no savings'; certainly hurts on interest rate but you can, and should, still buy a house.





The last answer was correct that one of the main benefits of owning a home is gaining that equity. When you continue renting you are netting 0% equity. No matter if your rate is 3% or 12% you are not paying much down on your principle for the first few years anyway. Your equity is gained by the increasing value of YOUR home. So I suggest you buy now.





First, check out my blog to learn more about the mortgage process: http://explaintome.blogspot.com





Find a mortgage broker that will walk you through this process.





Your situation puts you into two different loan categories. You could possibly qualify for a rate of about 6% but since you are borrowing more than 80% of the sale price, you would have to pay PMI. That can be very expensive. That's why you should never concentrate completely on rate. Look at your total payments.





Most likely you'll fall into a non-conventional, or subprime, loan. You'll be between 7.5% and 8.5% on your first mortgage of 80% and around 10% on your second. If you can afford the payments, it may be worth it to you. After two years or so you can refinance. Hopefully your credit is in better shape but you can use your equity in the property to give you the best rates available at that time.





Best of luck!What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
With no down payment and a bankruptcy in the near past, any rate you get, if you can get a rate, will be unreasonable. The goal of ownership for most people is to have a sense of security. This sense of security comes from the equity in the home which continues to build over time with payments. If you have no downpayment and a high interest rate, this will not apply to you. You may be better off renting and saving that money in a bank or other investment (depending on your risk tolerance). In addition to the rate, you also consider the additional costs of private mortgage insurance (with less than 20% down), homeowner's insurance, maintenance and upkeep as well as your time involved in taking care of a home. Financially, it may make more sense for you to rent.





It does not sound like it will make sense financially.
It probably won't be a fixed rate, unless you get an apr for just a couple of years and then try to refinance. So, we're talking about something maybe in the 8s, or so, and if you do not have money for a downpayment you may need a second mortgage, where the interest will be considerably higher, maybe 10 or more.





I think Century 21 has one of those calculators you can run the numbers on...
It all depends on the lender as each lender has their own criteria for making loans.