Lock the rate at 4.25% with 0 points (scores, lender, payment, assets)

[thelopez2]

Originally Posted by ncole1

Ok.

Why, if it would save you money and your utilization and DTI wouldn't be too high?

1)Some underwriter will treat it has borrowed money.
2) It can lead to an additional credit pull
3) if under contract with deadline you don't want to do anything that might extend it.
4) you'll have to generate the paper trial for anti money laundering

[ncole1]

Originally Posted by thelopez2

1)Some underwriter will treat it has borrowed money.
2) It can lead to an additional credit pull
3) if under contract with deadline you don't want to do anything that might extend it.
4) you'll have to generate the paper trial for anti money laundering

If you got the CC loan more than 60 days before the home loan, it's seasoned, right?

[PeteATL41]

How about save an extra 1%?? Good grief if you're that low on cash why are you buying a house that will cost $$$ to maintain???

[thelopez2]

Originally Posted by thelopez2

A smaller down payment can have a significant impact on rate especially if you go from 20% down to 19% down.

Let's change it from 19% to 14% to end the discussion.

[Bette]

Originally Posted by Saory

Hi,
I'm about to lock my interest rate for a home loan of 198K - 30 Years, in Houston, TX.
It will be at 4.25% with 0 points.

Do anybody know what "0 points" means?
and, does this seem like a good rate?

How much down?

Is your lender buying out the mortgage insurance if conventional and less than 20% down?

Credit score?

I'm a mortgage broker in Florida, not Texas, but the rate seems high.

[SmartMoney]

I agree, even at 5% down, it's high, unless the scores are low.

[thelopez2]

Originally Posted by ncole1

If you got the CC loan more than 60 days before the home loan, it's seasoned, right?

When asked, is any of the down payment borrowed money, what would you say? But yes 60 days would be seasoned funds.

[Saory]

Originally Posted by thelopez2

Unless you post your credit score, downpayment, source of income, credit history, type of property, assets, their isn't enough information.

Points are talked about in two manners. By definition 1 point is 1% of the loan. Points are also referred to as "Discount Points" where you pay to possibly reduce your interest rate. You can pay various amount and is not restricted to just 1%. There are some tax strategies in paying discount points in the purchase.

Thank you for all the replies.

Our downpayment is 20% of the selling price, it's all saved money.
Credit Score is 696 (My husband's is 718, but they are using mine because of some middle point rule)
Source of income is our daytime jobs
Type of property is single home
our assets are our cars and saving account(where the downpayment is saved)
The lender is paying $4k of the closing costs and the Title.

[ncole1]

Originally Posted by thelopez2

When asked, is any of the down payment borrowed money, what would you say? But yes 60 days would be seasoned funds.

It is an ill posed question because money is fungible. If I had $4k in paychecks and $4k in CC advances go into my account and then made a $4k down payment, was the money borrowed? The question is nonsensical because you cannot specify which dollars are which with an electronic account balance. Did my paychecks pay for my food or did the borrowing pay for it?

[ncole1]

Originally Posted by Saory

Thank you for all the replies.

Our downpayment is 20% of the selling price, it's all saved money.
Credit Score is 696 (My husband's is 718, but they are using mine because of some middle point rule)
Source of income is our daytime jobs
Type of property is single home
our assets are our cars and saving account(where the downpayment is saved)
The lender is paying $4k of the closing costs and the Title.

What's the DTI ratio?