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Old 01-19-2009, 11:11 AM
 
91 posts, read 239,840 times
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I am just curious about mortgage brokers. We should be closing on our house in Feb, and I am seeing mtge rates at 5.1%. We have 20% down and credit scores in the high 700's. Why is my mtge broker telling me that the rate is 5.6%? This is an $86 diff a month from 5.1%. Please help me understand, I thought brokers shop around for the "lowest" rate.
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Old 01-19-2009, 11:36 AM
 
12,302 posts, read 14,717,305 times
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Quote:
Originally Posted by jen919ifer View Post
I am just curious about mortgage brokers. We should be closing on our house in Feb, and I am seeing mtge rates at 5.1%. We have 20% down and credit scores in the high 700's. Why is my mtge broker telling me that the rate is 5.6%? This is an $86 diff a month from 5.1%. Please help me understand, I thought brokers shop around for the "lowest" rate.
Get your loan through a bank or credit union, ditch the broker.
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Old 01-19-2009, 04:41 PM
 
Location: East Northport
3,350 posts, read 8,787,286 times
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Where are you seeing the other rates? If it's from ads, it might be a week or two old. Check out bankrate.com.

I agree with dman72. It does not sound like you need the services of a mortgage broker. You could do just as well on your own by shopping around a bit.
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Old 01-19-2009, 04:50 PM
 
Location: Long Island
9,449 posts, read 20,276,453 times
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Quote:
Originally Posted by jen919ifer View Post
I am just curious about mortgage brokers. We should be closing on our house in Feb, and I am seeing mtge rates at 5.1%. We have 20% down and credit scores in the high 700's. Why is my mtge broker telling me that the rate is 5.6%? This is an $86 diff a month from 5.1%. Please help me understand, I thought brokers shop around for the "lowest" rate.
As Tom said, it could be an old ad. Also, some lenders advertise low rates and in the fine print (or at time of application) you'll find they charge points, bringing the actual interest rate up higher than what you thought you were getting.
Various fees and points can add significantly to the presumed "interest rate" - it's important to look at the whole picture.

Also, as Tom indicated, rates change frequently, sometimes twice a day, so a comparison is not easy
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Old 01-19-2009, 10:06 PM
 
91 posts, read 239,840 times
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I look at yahoo everyday, and I believe they use bank rate. There has to be fine print in the rates that are posted and that it why they seem so low. if I go on the countrywide or wells fargo stes, they are around the 5.4 & 5.5 range so..
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Old 01-19-2009, 10:35 PM
 
Location: FL
19,029 posts, read 10,170,912 times
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Shop a few different lenders. My brother just did a refi last week for 4.75% for 20 years. In the high 70's you should be able to get that rate also. Look around.
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Old 01-19-2009, 11:07 PM
 
Location: Long Island
9,449 posts, read 20,276,453 times
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Originally Posted by Donna-501 View Post
Shop a few different lenders. My brother just did a refi last week for 4.75% for 20 years. In the high 70's you should be able to get that rate also. Look around.

Different rates for different time frames - 20 yrs. vs. 30 yrs.
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Old 01-20-2009, 07:51 AM
 
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We just did a re-fi with BFCU for 4.875% over 30 years, no points. You shouldn't have a problem finding low 5%'s
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Old 01-20-2009, 08:13 AM
 
5,033 posts, read 4,665,236 times
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yeah but as a refi, please make sure that yu have the equity in the house. We dont and so even though our credit is in the 700's, never missed a payment, we cannot refi as the equity is gone. We put down 20%, but BOA state that the prices are down so our equity is gone, gone, gone.
dd
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Old 01-20-2009, 09:08 AM
 
Location: NY
1,416 posts, read 5,192,939 times
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Quote:
Originally Posted by Elke Mariotti View Post
Different rates for different time frames - 20 yrs. vs. 30 yrs.
Yes, the shorter the term the lower the rate. Last week we were quoted two different rates for the same loan: 4.25% for the 15 year term and 4.625% for the 20 year term. We would have to pay one point to get either rate.

To the OP: What bank do you use for other things? Many banks (such as Chase) give a discounted mortgage rate to customers. Chase's discount is a quarter of a percent (the rates I quoted above do include that discount).
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