Flexibility on rates (loan, fixed rate, foreclosures, credit card)

[sbanawan]

How flexible are lenders these days? We're closing on our house in about 8 months, so I know there's no way to know what rates will be then, but how flexible can a lender be when the borrowers:

- both have median credit scores in the 790's
- have no credit card debt and pay all cc bills in full
- have one very small student loan and more substantial one
- have one car payment

?

We're going to put 20% down and have quite a bit in savings and stock/mutual funds. Could we expect a lender to try to "make us a deal"? I figure we're safe money...

[f_m]

That's really too far in the future. However, I suspect a mortgage broker is more likely to deal if you have high credit.

[renriq02]

You'll probably get par rate.....and pay 1 origination fee

or

Pay a higher rate with no origination fee.

[sbanawan]

Originally Posted by renriq02

You'll probably get par rate.....and pay 1 origination fee

or

Pay a higher rate with no origination fee.

So are you saying that there's no real flexibility or that we wouldn't "qualify" to get a lower rate?

[renriq02]

Par rate is the lowest rate you can get.
Getting 'par rate' and paying no fees is unheard of.

A lender needs to make money by charging fees, charging a higher rate, or both.

It's not about 'qualifying'. It's about negotiating.
You will need to find a happy medium that will help you make a decision.

Some people rather pay 1 point, and have par rate.
Others would prefer no points, and receive a higher rate.

Originally Posted by sbanawan

So are you saying that there's no real flexibility or that we wouldn't "qualify" to get a lower rate?

[sbanawan]

Originally Posted by renriq02

Par rate is the lowest rate you can get.
Getting 'par rate' and paying no fees is unheard of.

A lender needs to make money by charging fees, charging a higher rate, or both.

It's not about 'qualifying'. It's about negotiating.
You will need to find a happy medium that will help you make a decision.

Some people rather pay 1 point, and have par rate.
Others would prefer no points, and receive a higher rate.

Ah. That makes sense. Thanks.

[C5Aprea]

Gee,
It's a shame that the banks dont make money off my loan the first 10 years I pay on it while im only add about $125 dollars a month into equity

Originally Posted by renriq02

Par rate is the lowest rate you can get.
Getting 'par rate' and paying no fees is unheard of.

A lender needs to make money by charging fees, charging a higher rate, or both.

It's not about 'qualifying'. It's about negotiating.
You will need to find a happy medium that will help you make a decision.

Some people rather pay 1 point, and have par rate.
Others would prefer no points, and receive a higher rate.

[renriq02]

not with ppl refinancing every 3-4yrs...and foreclosures...

Originally Posted by C5Aprea

Gee,
It's a shame that the banks dont make money off my loan the first 10 years I pay on it while im only add about $125 dollars a month into equity

[chet everett]

renrig02 is correct. Everybody has to make money.

There is more than one way to skin a cat. I have seen deals where lenders give loans "below par" to a special class of customers. This is not something that may be available to you but virtually all the major banks that have a "private banking" division that deals with "high net worth individuals" are capable of doing this. The mortgage will go into their "retained portfolio". Your stocks and funds would be in trust with the bank. Ideally you'd also have some kind of business banking and/or estate planning needs that the bank would provide. Most banks have a floor of about $500,000 cash equivalent net worth before you are even of interest to their private banking dept. The "wealth mgnt." side of the business generates fees for managing the trust. The business banking side generates fees from doing you commercial bank operations. The mortgage is not really a money loser, as the bank just chalks up the "no fees" to "business acquisition expenses". If that student loan was for a Harvard Business School MBA and you then go on to steer all your firm's business through the bank it is probably a good way to start off a profitable relationship for both of you...

[oceanjunkie]

We're just coming up to closing now, and were in athe same boat when we were looking for financing. Since we were good candidates for a mortgage and we were looking for a conventional 20% down fixed rate loan, we skipped the brokers and went direct to the banks. They seemed to be eager for our business. The bank we went with was able to offer us competitive rates, plus we don't have to pay any discount or origination fees, which we probably would have if we went with a broker.