Credit Low Interest

Why did he get such a low interest rate?

My husband's uncle just got approved for a mortgage, at 1%! Like how is that even possible. They said it was because his income is low. My husband and I make less than them and our interest rate is not 1%, and our credit score is about the same as his uncle if not a little better. How did he get a low rate?

Public Comments

1. I think there is some confusion here. Low income should mean a higher rate, not a lower one as it reduces your ability to repay. Eat Funyuns.
2. The main question is - was this a new mortgage or was this a re-finance? If a re-finance, under the new Mortgage Act, banks are supposed to work with borrowers to reduce interest rates until the new payment is equal to 31% of income. If a new mortgage, then something is fishy here.
3. I don't know how he could have received such a low rate, unless it is through some kind of government housing program or something. My brother just bought a house, his credit is rated excellent (close to 800), makes 80k a year and he went through the VA and his rate was 5%. I just don't believe he got 1% on a conventional mortgage... if he did I'm going to have my brother refinance.
4. WOW that's great but what company did he go with.. I'm buying a house soon.. I would love to get my mortgage with them