U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-11-2013, 11:00 AM
 
Location: Woodbridge, VA
31 posts, read 46,018 times
Reputation: 13

Advertisements

So initially I have posted a thread applying for a home mortgage loan which was approved through Navy Fed. This is what I am offered 5% fixed rate with 0 points borrowing $389k through Navy Federal Credit union as we are two weeks away from our closing date.

Is this a good deal with a 738 credit score as I don't want to shop around and getting my credit pulled. Any advise would be really helpful.
Reply With Quote Quick reply to this message

 
Old 12-11-2013, 11:23 AM
 
Location: Scottsdale, AZ
1,987 posts, read 3,785,721 times
Reputation: 2888
Well if you don't want to shop around, you will never get a lower rate. Interest rates change almost daily so once you get a low rate it is best to lock it in.

Since we don't have all the particulars about your loan program it is hard to judge, but I suspect that if you shopped around you could probably get a lower rate than 5%. But rate alone does not tell the whole story, a cheaper rate might come at the cost of higher fees.

Personally, I would do a little shopping just to compare and not worry about another lender pulling your credit. You will be able to make a better decision.
Reply With Quote Quick reply to this message
 
Old 12-11-2013, 11:38 AM
 
Location: Woodbridge, VA
31 posts, read 46,018 times
Reputation: 13
Quote:
Originally Posted by AZJoeD View Post
Well if you don't want to shop around, you will never get a lower rate. Interest rates change almost daily so once you get a low rate it is best to lock it in.

Since we don't have all the particulars about your loan program it is hard to judge, but I suspect that if you shopped around you could probably get a lower rate than 5%. But rate alone does not tell the whole story, a cheaper rate might come at the cost of higher fees.

Personally, I would do a little shopping just to compare and not worry about another lender pulling your credit. You will be able to make a better decision.
I tried with PNC and they gave me a rate of 4.5% however the payment was still $100 more than Navy Fed because they had included orgination fee and MI of $206 where Navy Fed is not.
Reply With Quote Quick reply to this message
 
Old 12-11-2013, 11:55 AM
 
Location: Southern California
4,350 posts, read 4,929,984 times
Reputation: 2129
You only have two weeks. If you were to find a new lender you might not be able to close on time which might be bad. There is a risk associated with locking, you lock when you are happy with the rate. If rates fall, you might now have time to go though the whole loan process again. As you already saw there is more to the story than just the rate. It is a little too late to shop if you need to close in 2 weeks. If you do talk to people, tell them you need to close in two week and see if they'll be able to close.
Reply With Quote Quick reply to this message
 
Old 12-11-2013, 02:14 PM
 
Location: New York
2,251 posts, read 4,160,232 times
Reputation: 1607
PNC - MI is $206 = FHA loan = life time mortgage insurance < No Good

5% fixed rate with 0 points borrowing $389k = $2088 monthly payment < Good Deal

No costing costs rolled into the loan = smaller loan. Gives you options later either to sell or refinance.

Suggestion - setup to send $174 extra each month knock off 7.5 years off term, reduce the net effective interest rate 2% less, the best is your reported as being more responsible, and your credit score can go into the upper 700's.

Always protect your credit score and seek to improve it. High credit = low bills vs low credit = high bills.

Your next step is to watch out for Home Depot - sales for new lawn mower's....lol!!!..

Good Luck
Reply With Quote Quick reply to this message
 
Old 12-11-2013, 03:11 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
Reputation: 8078
The interest rate is high, so I assume you are doing a no money down loan program? This loan program is pretty much nonexistent, so, it's hard to compare apples to apples. True, you won't find better without looking around, but you probably will not find the same program, either.
Reply With Quote Quick reply to this message
 
Old 12-11-2013, 03:54 PM
 
Location: In the city
1,581 posts, read 3,162,137 times
Reputation: 2353
Multiple lenders can pull your credit for 14 days while you shop your rate without you getting "dinged". Read up on some of the info about it on Credit Karma. If you shop your rate again in the spring or fall, you will have an issue, so be prepared to buy after that 14 day period.
Reply With Quote Quick reply to this message
 
Old 12-11-2013, 04:53 PM
 
3,317 posts, read 7,251,326 times
Reputation: 4095
Quote:
Originally Posted by BT00 View Post
So initially I have posted a thread applying for a home mortgage loan which was approved through Navy Fed. This is what I am offered 5% fixed rate with 0 points borrowing $389k through Navy Federal Credit union as we are two weeks away from our closing date.

Is this a good deal with a 738 credit score as I don't want to shop around and getting my credit pulled. Any advise would be really helpful.
How much of a down payment? What state are you buying in? Are you escrowing taxes and insurance? Is 738 the middle fico that THEY pulled? Is this for a 30 year fixed? Is it based on a 30 day Lock period? What do the rest of the origination fees look like? What is the purchase price? Is it a single family residence? Is it a primary residence?
Reply With Quote Quick reply to this message
 
Old 12-13-2013, 08:12 AM
 
Location: Woodbridge, VA
31 posts, read 46,018 times
Reputation: 13
Quote:
Originally Posted by Pfhtex View Post
How much of a down payment? What state are you buying in? Are you escrowing taxes and insurance? Is 738 the middle fico that THEY pulled? Is this for a 30 year fixed? Is it based on a 30 day Lock period? What do the rest of the origination fees look like? What is the purchase price? Is it a single family residence? Is it a primary residence?
Well according to loan officer all my scores were 735, 737,738. I am putting 5% down for a single family house in Virginia 30 years fixed, primary residence, price $410k
Reply With Quote Quick reply to this message
 
Old 12-13-2013, 11:22 AM
 
3,317 posts, read 7,251,326 times
Reputation: 4095
A No-MI loan at 95% at 5% is pretty strong. Navy Fed tends to have low fees as well.

A one time up-front Mortgage Insurance fee would be $8-9k to cover that situation. I would be well above 5.000% to get that done, closer to 5.25%+.

People might get you to try to hem and haw and overthink it, but it strikes me as a fair and solid deal. The Mortgage Interest write-off will be a good thing.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top