[wwu123]

OK, I know this question isn't specific to Las Vegas, but since a fair number of discussions here are about buying a home to occupy or invest in, and my reason for asking is because I'm closing on a Henderson home in two weeks, thought I'd just ask the experts here.

So hear me out. Obviously shopping different banks and mortgage brokers to compare mortgage rates should be the answer to getting the best mortgage rate. But here's what I'm experiencing, and what I'm annoyed about is that this is my 2nd mortgage with the same lender that I'm frustrated about:

So after going into contract on a home, I check with several lenders to see what their rates are and I get daily calls or e-mails from them for a week. A few seem to be competitive with the best rate, so I choose one reputable lender and fill out an application, but don't lock in.

Now this is the part that concerns me. How can ensure that I'm getting quoted the best rate? It seems once I choose a lender, they can quote me anything they want. What they may have is a public rate published daily, but it is higher than what I'm quoted - to get the competitive rate I have to call, and they tell me something. Both this time and in the past, the public rates and related indexes go up and down, but in both times have trended down about 0.125-0.25% (125-250 basis points). However, once I start the application, I'm never told the rate has gone down, only the same or up.

So this time, on 2/16 I get a personal rate 4.25% (15-year fixed). On that same day, their "public" rate is 4.375%, the 10-year Treasury is 3.621%. Last week, they lock me in at 4.25%; on that day, their "public" rate is 4.25%, the 10-year Treasury is 3.492% (0.129% lower than 3/16). Basically every other lender rate or index that I can verify is 0.125% lower in this timeframe, but I'm told my rate has not dropped.

How do you know they're being honest, after all if they charge a higher rate, they make more money? Threaten to go to another lender? That's what I did last time, to force them to drop my rate, but I can't risk it this time with only two weeks til closing. Or have two or three applications with different lenders? But then I have to pay for multiple application fees and appraisals.

[Robustus]

Quick, add "in Las Vegas" to the title of this thread before the mods move it (they're terrible about de-contextualizing threads)!!

[airics]

why are doing the 15 instead of a 30... When we bought in 2006 and 2008, i chose the 5yr interest onlys..... and it (at least on the 2006 purchase) was a great move (the 08 resets in a couple years).. At the time of the 06 purchase the interest rate was 5 7/8ths%... the reset was based on the Libor.... it reset last month... this year, i am at 3% my total payment including principle went up a whole 30 bucks....

[wwu123]

Originally Posted by airics

why are doing the 15 instead of a 30... When we bought in 2006 and 2008, i chose the 5yr interest onlys..... and it (at least on the 2006 purchase) was a great move (the 08 resets in a couple years).. At the time of the 06 purchase the interest rate was 5 7/8ths%... the reset was based on the Libor.... it reset last month... this year, i am at 3% my total payment including principle went up a whole 30 bucks....

15-year fixed instead of 30-year fixed: Most analyses that say you can turn a 30-year fixed into a 15-year loan by making additional payments assume that the rate spread is small, between 0.25% to 0.5%. Currently the rate spread is 0.75-0.875%, pretty huge, and the downside and risk of the higher 15-year payments is worth it to me for the lower rate.

Fixed rate instead of adjustable: Just because one got a great rate on a adjustable loan in 2006 or 2008 doesn't mean you can get the same today. I have a HELOC from 2008 that is currently at 2.5%, can't get anything near that today. But I didn't look at any ARM's because my view on future interest rates is pessimistic. Also I view the main benefit of ARM's for shorter holding periods, my family mainly keeps both residence and rental properties for at least 10-30 years.

[Caltovegas]

Here's a great site for some info. Home