First time home buyer looking at mortgages and having a hard time understanding the difference between good and bad on rates.
On a loan estimate I have been quoted 4.75% rate(seems high?) and 5.795% APR on a 30 year mortgage.
What factors should I be looking at to understand if this is a good deal or not? This is on an FHA loan with 3.5% down and my credit score is just below 680.
I am also trying to understand points. On this estimate it looks as if my origination fee is 1 point.
I've read basics such as: https://www.bankofamerica.com/home-loans/mortgage/finding-the-right-loan/apr-vs-interest-rate.go
My main question is what should I expect for the difference between APR and rate from a lender? On an FHA loan with 3.5% down should I always expect to be paying down in points?