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 01-22-2008, 06:58 PM
 
Location: Durham, NC
1,364 posts, read 5,451,353 times
Reputation: 756

Advertisements

If I am preparing to sign a contract to build in the next month for a house with a delivery time of 6-7 months from signing, what is my situation with a mortgage?

Am I essentially a slave to the rates at 1-2 months prior to closing date when I can lock in? Is this the situation with any new build...that you take a leap of faith on rates?

With market volatility as it is right now, this concerns me a bit.
Reply With Quote Quick reply to this message

 
Old 01-23-2008, 08:40 AM
 
Location: Durham, NC
1,364 posts, read 5,451,353 times
Reputation: 756
Bump for some help please
Reply With Quote Quick reply to this message
 
Old 01-23-2008, 08:44 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,102,357 times
Reputation: 1008
ask your builder's lender if they do long extension locks.

A lot of lenders do BUT they require you pay 1% upfront as a cost to extend it 180days. Otherwise...you're at the mercy of the market.
Reply With Quote Quick reply to this message
 
Old 01-23-2008, 08:56 AM
 
Location: Dallas, NC
1,703 posts, read 3,454,770 times
Reputation: 807
It really depends on the mortgage you are getting. You need to contact a mortgage broker or bank and see what they say. I am using one of my builder's lender and to get the best interest rate for the program I am doing, I can't lock until 70 days out so in essence, I am a slave to those rates until March. I wouldn't want to lock too far out since the rates seem to still be fluctuating up and down a little.
Reply With Quote Quick reply to this message
 
Old 01-23-2008, 09:27 AM
 
Location: Durham, NC
1,364 posts, read 5,451,353 times
Reputation: 756
Is there any penalty for not taking a loan you've locked? If you do a pricey 180 day lock as an insurance policy (pricey in that the rate is higher), and then in 5 months the rates are down a point, can you just abandon that one and find a new lender with the current market rate? Or are you contractually obligated to the locked lender in any way?
Reply With Quote Quick reply to this message
 
Old 01-23-2008, 09:31 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,102,357 times
Reputation: 1008
this is why most lenders required you pay 1% upfront.
If your loan amount is 180k...you will pay 1800 upfront to lock in the rate.
You can walk away...because you already paid for the 1800. You will lose it either way...as it is already out of your pocket.

Quote:
Originally Posted by sneezecake View Post
Is there any penalty for not taking a loan you've locked? If you do a pricey 180 day lock as an insurance policy (pricey in that the rate is higher), and then in 5 months the rates are down a point, can you just abandon that one and find a new lender with the current market rate? Or are you contractually obligated to the locked lender in any way?
Reply With Quote Quick reply to this message
 
Old 01-23-2008, 09:34 AM
 
Location: Durham, NC
1,364 posts, read 5,451,353 times
Reputation: 756
Quote:
Originally Posted by renriq02 View Post
this is why most lenders required you pay 1% upfront.
If your loan amount is 180k...you will pay 1800 upfront to lock in the rate.
You can walk away...because you already paid for the 1800. You will lose it either way...as it is already out of your pocket.
At what lock point are you no longer charged an up front fee?
Reply With Quote Quick reply to this message
 
Old 01-23-2008, 09:37 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,102,357 times
Reputation: 1008
Usually around 90days.....if it's 120...some lenders will require a fee upfront

Quote:
Originally Posted by sneezecake View Post
At what lock point are you no longer charged an up front fee?
Reply With Quote Quick reply to this message
 
Old 01-25-2008, 01:48 PM
 
2 posts, read 10,693 times
Reputation: 12
my husband and i just received the 'stip sheet' from our agent on the things that they needed before we can close next thursday.....first off, papers were just signed on the 21st and we are trying to close by the end of the month to avoid paying interest for going into the next month...is this a feasible time line to close or are we asking for too much.....the pmi is a big concern for us...we tried to get the lender to do a self insured mortgage for the pmi but the agent told us we didnt qualify for this b/c the credit score did not fall in the range.....we got the interest rate locked in at was pretty high....6.7%...but the closing deal was very good so with all things considering...we want to know if the Tax Code changed this year and made provisions for pmi to be tax deductible or if there is a website that lets u plug in credit score and loan value info to get pmi quotes urself....the agent is basically giving us this info and i wud really like to see this for myself....so does anyone know of anything involving pmi quotes and would like to refer us to a good site for further reading.....thanks
Reply With Quote Quick reply to this message
 
Old 01-25-2008, 03:29 PM
 
Location: out there somewhere in the sticks
133 posts, read 330,493 times
Reputation: 49
Quote:
Originally Posted by griffinll View Post
my husband and i just received the 'stip sheet' from our agent on the things that they needed before we can close next thursday.....first off, papers were just signed on the 21st and we are trying to close by the end of the month to avoid paying interest for going into the next month...is this a feasible time line to close or are we asking for too much.....the pmi is a big concern for us...we tried to get the lender to do a self insured mortgage for the pmi but the agent told us we didnt qualify for this b/c the credit score did not fall in the range.....we got the interest rate locked in at was pretty high....6.7%...but the closing deal was very good so with all things considering...we want to know if the Tax Code changed this year and made provisions for pmi to be tax deductible or if there is a website that lets u plug in credit score and loan value info to get pmi quotes urself....the agent is basically giving us this info and i wud really like to see this for myself....so does anyone know of anything involving pmi quotes and would like to refer us to a good site for further reading.....thanks

PMI is now tax deductible but check with your cpa or tax person for clarification - 6.7% seems very high, but I do not know your entire situation. Many lenders offer a float down option in case the loan is lower. If you have not paid anything to the lender up front, shop the loan prior to closing.

For information on PMI or MI you can go to fanniemae.com or mgic.com or radian.com
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
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