feeonlyindy

Primetime,

You can find estimates of current mortgage rates for your area online at http://finance.yahoo.com/rates/query?t=m or www.bankrate.com. Ultimately, you'll have to apply for a loan from a lender or broker to know exactly what rate you qualify for. The lender/broker will provide you with a Good Faith Estimate (GFE). The GFE shows an itemized breakdown of all of the expenses associated with getting a mortgage and purchasing a home. There are many costs beside the rate you get, so pay close attention. The GFE allows to you compare different offers in a standard format.

With a score of 750+, you will likely qualify for the best rates (around 6.1%-6.625% as of 7/24/08), but be sure to shop around and get at least 2-3 quotes from different banks/brokers (not just Wachovia). There can be a lot of "other" fees that get charged at closing that are not included in your rate - many are legit and reasonable, but other may be inflated, unnecessary, or rediculous.

Buying a house is probably the biggest purchase you'll make in life, so take your time to shop for the best mortgage deal! That goes for buying the house too...shop around, get to know your local housing market and be sure to negotiate on price when you make an offer. Don't offer asking price, especially in this market. A good real estate agent can be very valuable guide, especially if this is your first home purchase.

You sound like you're in good shape with a 20% down payment. 20% down will help you get a good interest rate and also avoid private mortgage insurance (PMI). Keep in mind closing costs, which I would suggest paying for out-of-pocket instead of rolling them into your loan.

Hope that helps.

Brent