How come Obama gets a lower interest rate on his 1.43$ million home and I have to pay 4% higher than him?

Question

Do the dems get sweetheart deals and then cover it up by saying something has to be done about our mortgage failures?

Answer 1

He locked in an interest rate of 5.625 percent on the 30-year fixed-rate mortgage. That isn't all that low. The average at the time was 5.93 percent. As such, it was a good deal, but not a sweetheart deal. Obama had received competing offers from another lender and, as a result, got a more competitive rate. As Oliver Willis, who used to work for a mortgage company, put it, "The idea that the lender gives a few fractions of a percent to a borrower of a jumbo loan is about as common as breathing air."

Answer 2

Maybe he has slightly better credit than you.

Answer 3

Guess what sport.........your mortgage interest rate is based on two things 1) Amount-the more you borrow the more interest you pay.  In order for people who can buy a 1.43 million dollar home, instead of just paying cash for a $400k home, mortgage companies have to entice them enough to get them to pay the fees associated with mortgage. 2) Credit Score-it is a fact that people with higher credit scores make more money than those who don't.

Your mortgage rate is based on your credit score and amount you borrowed, same thing as Mr. Obama's.  Now if your score was comparable to his and you were financing a similar amount I am sure your interest rate would be the same.  The only thing that matters to mortgage companies is getting someone to buy the mortgage, not political affiliation.  You should know that as a business liberal, right?

Answer 4

I don't think its the Democrats specifically.  It's just Politics as Usual.  He was in a position of political power, so the bank cut him a sweet deal.

I guess stopping that isn't the kind of "Change" he stands for, is it?

Answer 5

Many politicians get various sweetheart deals.

Answer 6

If you are paying 4% higher than anyone, you have a serious problem.  Either you have terrible credit, or you have an adjustable rate mortgage that reset (or a combination of both).  I have a 5.5% interest rate.  Besides your credit, down payment and points are what will effect your interest rate.  I would suggest saving at least ten thousand (maybe more or less depending on the amount you owe), and refinance at a low interest, fixed rate.  Buy points even, if you plan to stay in that house a while.

Answer 7

yeah... it sounds like you got ripped off... hahaha...

but he's a millionaire after his book sold well...

and millionaires all get awesome rates... because they, go figure, almost always pay it back... low risk loans get low rates...

common sense at work...

Answer 8

Don't blame him for your President's gifts to the wealthy.

Answer 9

Not to mention the $$$ he saved through Rezko getting him the mansion at well below market value.  Rezko is in jail now - fraud and conspiracy convictions.  Obama sure hangs out with a lot of losers.