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Old 09-09-2008, 07:18 PM
 
741 posts, read 3,208,465 times
Reputation: 395

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My mortgage guy locked me in over the weekend at a higher rate. When I heard about the takeover and the dropping rates I was furious. He knew this was happening. I kept calling and got no response. Today I went to a different bank and they offered me the rate for today with all closing costs paid. I called my original lender while I was at the bank and told him where I was and what I was doing. Well, I finally got a response! They matched the banks rate to keep my business. I saved $100. per month now with the new rate.

There's a way out of the mortgage lock. Plenty of banks want the business. So go get out of that higher interest rate lock , like we did.

I'm happy today.
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Old 09-09-2008, 07:26 PM
 
Location: Broward County
2,518 posts, read 9,696,055 times
Reputation: 1333
which bank offered to pay all closing costs if you don't mind me asking....
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Old 09-09-2008, 07:48 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,098,996 times
Reputation: 1008
congratulations! most lenders are willing to pay closing costs with a premium on the rate.

BofA used to offer this program...not sure if they still do.

Quote:
Originally Posted by NC little foot View Post
My mortgage guy locked me in over the weekend at a higher rate. When I heard about the takeover and the dropping rates I was furious. He knew this was happening. I kept calling and got no response. Today I went to a different bank and they offered me the rate for today with all closing costs paid. I called my original lender while I was at the bank and told him where I was and what I was doing. Well, I finally got a response! They matched the banks rate to keep my business. I saved $100. per month now with the new rate.

There's a way out of the mortgage lock. Plenty of banks want the business. So go get out of that higher interest rate lock , like we did.

I'm happy today.
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Old 09-09-2008, 09:17 PM
 
16,701 posts, read 18,925,010 times
Reputation: 6798
No such thing as "no closing costs"... they just increase your interest rates so that you pay the closing costs over time which means you pay all the closing costs PLUS interest... no thanks..
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Old 09-09-2008, 09:56 PM
 
Location: Cary, NC
1,036 posts, read 3,628,581 times
Reputation: 503
Quote:
Originally Posted by evilnewbie View Post
No such thing as "no closing costs"... they just increase your interest rates so that you pay the closing costs over time which means you pay all the closing costs PLUS interest... no thanks..
It works in some cases... like if the borrower does not have the money or needs it for down payment, repairs or to pay off higher interest rate debts.

Every situation is different. Of course it comes at a cost, there is no "free mortgage". You either pay for your fees yourself, roll them into the loan, have the seller pay (which means you pay a higher sales price and finance it into the loan amount) or the lender pay (which means you pay a higher interest rate).

Most lenders will allow you to renegotiate your rate once or twice if the rates drop by .125 - .25%. Of course they want to keep your business, but there are limits to what they can do as a lock is a commitment you make. I think it would be funny to have a lender call a borrower to renegotiate the rate HIGHER because rates went up....
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Old 09-09-2008, 10:36 PM
 
Location: Tennessee
84 posts, read 434,518 times
Reputation: 66
Default Me too!!! Me too!!

I finally got a hold of our mortgage lady. I had called her 2-3 times since Saturday & I still hadn't heard back from her. So I called today & left a message asking her to return my phone call, and asking why she was avoiding me & that I'd come into the office if I needed to to speak with her (in a polite way).

She called me back and I asked her if I could unlock the previous rate she herself had decided to lock in "for me" on Friday. She said she'd see what she could do & called back & emailed me stating that yes, she will lower it at NO CHARGE to us. Yipppeeee!!! I had already been calling around to other lenders just for a back-up plan!
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Old 09-10-2008, 02:59 PM
 
Location: New York
2,251 posts, read 4,163,764 times
Reputation: 1607
30yr rate today

6.000 -1.514 -1.264 -0.889 -0.639
5.875 -1.223 -0.973 -0.598 -0.348
5.750 -0.674 -0.424 -0.049 0.201
5.625 -0.087 0.163 0.538 0.788
5.500 0.222 0.472 0.847 1.097
5.375 0.664 0.914 1.289 1.539

If you really want to get a good rate - tell your broker you want to buy the rate down to 5.375% costing you 0.664%.

If your interest rate is higher than 5.75%, you are paying to much!!!!

I would hold off a few more weeks, because the rates are going to drop further. After the upcoming election, the rates are going to sky-rocket!!!

..

..
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Old 09-10-2008, 03:13 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,098,996 times
Reputation: 1008
so what if it's 5.75% no points?



Quote:
Originally Posted by Modification Specialist View Post
30yr rate today

6.000 -1.514 -1.264 -0.889 -0.639
5.875 -1.223 -0.973 -0.598 -0.348
5.750 -0.674 -0.424 -0.049 0.201
5.625 -0.087 0.163 0.538 0.788
5.500 0.222 0.472 0.847 1.097
5.375 0.664 0.914 1.289 1.539

If you really want to get a good rate - tell your broker you want to buy the rate down to 5.375% costing you 0.664%.

If your interest rate is higher than 5.75%, you are paying to much!!!!

I would hold off a few more weeks, because the rates are going to drop further. After the upcoming election, the rates are going to sky-rocket!!!

..

..
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Old 09-10-2008, 05:24 PM
 
Location: Cary, NC
1,036 posts, read 3,628,581 times
Reputation: 503
All hail the mortgage wizard with the 100% clear crystal ball of rates

Can you tell me, what if I have a 600 score? What about a 680 score? What if I am paying 0 points? What if its a no or reduced closing cost loan?

How about on a second home? What if I am doing 5% down? How about 20% down? How about 5% down with no PMI? Is this rate good in TX? How about NC? How about CA?

What if I want to lock my rate for 30 days, not the 15 you just quoted with those points? How about a 60 day lock? What if I need a stated income loan?

Its great to toss around zingers, our politicians sure love to do it. But be careful when you toss around interest rates without any regard to someones qualifications. The "one size fits all" advice the last few years (along with everyone "deserves" a home) is part of the reason for the mess we are in.

No one can say 100% what the rates will do in a few weeks, no one can say if they will go up or down in November. You are giving out advice that others might listen to with ZERO knowledge of their situation or liability if they take your advice and it proves to be wrong.

As lenders we need to be a little more cautious than that. Which is why its ILLEGAL to offer or advertise an interest rate without a corresponding APR. So... on your 5.375% rate what is my APR going to be??


Quote:
Originally Posted by Modification Specialist View Post
30yr rate today

6.000 -1.514 -1.264 -0.889 -0.639
5.875 -1.223 -0.973 -0.598 -0.348
5.750 -0.674 -0.424 -0.049 0.201
5.625 -0.087 0.163 0.538 0.788
5.500 0.222 0.472 0.847 1.097
5.375 0.664 0.914 1.289 1.539

If you really want to get a good rate - tell your broker you want to buy the rate down to 5.375% costing you 0.664%.

If your interest rate is higher than 5.75%, you are paying to much!!!!

I would hold off a few more weeks, because the rates are going to drop further. After the upcoming election, the rates are going to sky-rocket!!!

..

..
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Old 09-11-2008, 11:14 AM
 
Location: New York
2,251 posts, read 4,163,764 times
Reputation: 1607
Quote:
Originally Posted by rcarrillo View Post
All hail the mortgage wizard with the 100% clear crystal ball of rates
Can you tell me,

what if I have a 600 score? What about a 680 score?
If you have a lower score - then you want to go FHA. If you have a higher score, and you have equity and good credit score, good income, etc... Then you want to look at conventional lenders.

What if I am paying 0 points?
The interest rate will be a little higher. There will be title/filing, escrows/ county and state taxes that will be part of your total closing costs...

What if its a no or reduced closing cost loan?
Your closing costs are rowed into the loan, resulting in a higher interest rate.

How about on a second home?
It is different from lender to lender, I had a discussion last night with a client, looking to buy an smaller investment home that was over 100 miles away from his primary. I mentioned we should look at checking out the requires for applying for a 2nd home mortgage, which would result in a lower interest rate.

What if I am doing 5% down?
How about 20% down? How about 5% down with no PMI? Is this rate good in TX? How about NC? How about CA? Every loan is different, due to the borrower's income, credit, selling price, etc. If they apply for a FHA loan. These type of loans offer lower rates and less down for people with lower credit scores. Another advantage on FHA loans the mortgage insurance is cheaper then convention loan insurance. If a borrower's is putting 20% down, then you need to look at conventional loans, like the situation we are discussing in this post.

What if I want to lock my rate for 30 days, not the 15 you just quoted with those points? How about a 60 day lock?
The secret is having to 1003,1008, credit already approved with different lenders. Also having an appraisal company that can give a one day turn around. I have closed loans in less than a week, to secret is having everything organized.

What if I need a stated income loan? Yesterday looked at rate state for SISI and SISA loans, the rates were surprisingly low. However a 75% LTV or lower was required.

Its great to toss around zingers, our politicians sure love to do it. But be careful when you toss around interest rates without any regard to someones qualifications. The "one size fits all" advice the last few years (along with everyone "deserves" a home) is part of the reason for the mess we are in.
My answer to this question - if a person has good credit, good income, good value, and they need to lower their house payments. One wants to know what the lower interest rates that are out there. So when you are shopping for a loan, they can ask why that one particular bank/broker rate higher. If a person has bad credit, low income, upside down value - that is the persons I talk to everyday to help them save their homes.

No one can say 100% what the rates will do in a few weeks, no one can say if they will go up or down in November. You are giving out advice that others might listen to with ZERO knowledge of their situation or liability if they take your advice and it proves to be wrong.
As for predicting the interest rates - one has to look at history. When value is high, the rates are low. When value is low, rates are high. Except during an election year. The government normally schedules interest rate adjustments twice a year, June 15th and Nov 15. Interest rates tend to raise before those dates, and drop after those dates (except during an election year).

As lenders we need to be a little more cautious than that. Which is why its ILLEGAL to offer or advertise an interest rate without a corresponding APR. So... on your 5.375% rate what is my APR going to be?? The answer to this question is - the federal government requires lenders to quote APR because loans frequently are offered on different terms. APR takes into account some costs of getting the loan, including points, most loan fees and mortgage insurance. It does not take into account certain charges, including nonrefundable application fees, late payment charges, title insurance premiums, and fees for title examination, property appraisals and document preparation. The rates posted are no doubt par rates, which includes buying the rate down.

Guess what - the rates are still falling........

My mid score is 796, with 60 LTV. I currently owe $110k on 1st mortgage @ 4.75% fix 240mth and owe $75k on 2nd 6.75% 360mth. Looking to consolidate into one loan. I am watching these rate everyday!!!!



30yr rates 9/11/08
6.000 -1.829 -1.579 -1.204 -0.954
5.875 -1.426 -1.176 -0.801 -0.551
5.750 -1.092 -0.842 -0.467 -0.217
5.625 -0.696 -0.446 -0.071 0.179
5.500 -0.287 -0.037 0.338 0.588
5.375 0.238 0.488 0.863 1.113




..
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