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 10-16-2008, 01:43 PM
 
181 posts, read 553,200 times
Reputation: 77

Advertisements

Hi All,

I'm in the middle of applying for a FHA mortgage. I haven't locked my rate as yet . I was wondering do mortgage brokers put a % on the rate? How can I insure that I get the best rate that they have?

Thanks.
Reply With Quote Quick reply to this message

 
Old 10-16-2008, 02:49 PM
 
Location: Orlando FL
1,065 posts, read 3,673,280 times
Reputation: 424
Yes mortgage brokers can up your rate to make more money on the back end, called yield spread. (the higher your rate the more the lender will pay the broker at closing)

The only way to ensure you get the best rate is to shop around, or to simply TRUST whom is doing your mortgage. An honest person will tell you how much they are making on your loan and tell you why they are making that much or that little. Many states make brokers disclose what the yield spread is, however there are correspondent lenders, mortgage bankers, and probably another few classifications that this rule will not apply to and they don't have to tell you anything.
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 03:04 PM
 
181 posts, read 553,200 times
Reputation: 77
Default oh poo!!!!!!!

I thought so. I'm hopefully closing in 2 weeks and yesterday the "rate" was 6.75 "down from 7%"!!!!!!!!!! It's hard to argue because its "the market"
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 03:15 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,098,996 times
Reputation: 1008
What is your credit score, and loan amount, and your state?

Quote:
Originally Posted by Gessa View Post
I thought so. I'm hopefully closing in 2 weeks and yesterday the "rate" was 6.75 "down from 7%"!!!!!!!!!! It's hard to argue because its "the market"
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 03:34 PM
 
181 posts, read 553,200 times
Reputation: 77
My score is 643. 513615 and NJ.
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 05:05 PM
 
Location: Plano, Texas
1,676 posts, read 6,335,592 times
Reputation: 684
You should get a much better rate then that. Are you paying any points?
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 05:10 PM
 
181 posts, read 553,200 times
Reputation: 77
No points..
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 05:12 PM
 
Location: Plano, Texas
1,676 posts, read 6,335,592 times
Reputation: 684
with no points, you should get a slightly better rate. If you are keeping this home for a few years, i would suggest you call your loan officer, tell them you want to pay 1 point origination and ask what the rate would be. It should be about .375% lower.
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 05:24 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,098,996 times
Reputation: 1008
6.5% with no points?

That is a really good rate.

Also, you indicated that this loan is a FHA Jumbo loan.... the rate should be higher than what you're getting.
Reply With Quote Quick reply to this message
 
Old 10-16-2008, 05:26 PM
 
Location: Plano, Texas
1,676 posts, read 6,335,592 times
Reputation: 684
Quote:
Originally Posted by renriq02 View Post
6.5% with no points?

That is a really good rate.

Also, you indicated that this loan is a FHA Jumbo loan.... the rate should be higher than what you're getting.
I apologize, i didnt realize the loan amount. that is a really good rate with no points. Is there a broker fee or discount?
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