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We locked at 4 5/8% for a 30 year fixed a couple of weeks ago. What are rates today? We get a "free" float down if the rate goes down 3/8 or more. When we "lock" are we obligated to go with that lender if they aren't offering the best deal any more?
Smart money - The problem is, the home is 1,200 miles away and we have to close on the 29th of this month because we already have our plane tickets, time off work etc. (It's a short sale, the bank needs it done by the end of the month. They told us when it was approvd it would have to close within 30 days and that was on Dec 29)The mortgage person we have is a broker, so he shops all the different loans. Believe me I call him every other day or so and he said if he finds a lower rate he can get us that as long as it's not closer than 10 days or so to closing. It's hard being far away and trying to do all this over the phone.
First, your broker has zero motivation to find you a better rate. The closer you get to your closing date, the motivation dwindles even more. The only way to make sure you are getting the best rate is for you to get in touch tomorrow with a small bank that can move fast - a bank that approves and closes their own loans. (Probably too late now for your loan to make it start to finish with another broker). Get a duplicate loan app rolling, including appraisal. Yes, you will have a duplicate appraisal fee. But, come the 23rd, you will be able to call your bluff when your broker says he can't find you better. Then like magic, he will have better rates for you.
The question is, are you motivated to act for the better rate - major motivation required, because after then next 48 hours, the broker knows he has you over a barrel.
(If your loan is FHA, slightly different game plan, but still one where you can have the upper hand).
Location: central, between Pepe's Tacos and Roberto's
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Quote:
Originally Posted by rubber_factory
BB&T is offering 4.77% on new 30-yr fixed here.
I'm reading that spreads (I guess vs. mortgage bonds?) are higher than normal, is that correct?
That is true, but there is no way of knowing if or when spreads will return to normal, if they do. Even if they do, latest news is that Citibank agreed with the Senate to allow bankruptcy judges to modify mortgages via what is called a cram down. The bankruptcy judge basically orders the lender to write down the principal of the loan. Now that this has hit the news, I'm not sure that the excellent bond pricing we are seeing now will remain as not only do bond holders and mortgagors have to worry about prepayment and repayment, they now have to worry about court ordered writedowns.
Well thats true, he doesn't have motivation to find me a better one. He charges a half a percent to do the loan, which was less than some places. Oh and also he is a relative of my real estate agent, which makes it hard. I will call tomorrow and check around and then call him if I find lower and see what he says.
My mortgage called called me back and said 4.6 is with 1 point so it probably isn't worth doing, since we are at 5.1 and 20 days till we close. It would only bring our payment down 30.00 and cost 1,000. It would be great if rates got below 4, I wonder if they will. It will be too late for us though, unless it's in the next 10 days.
Seems like everyone has got pretty good rates, from the posts I have read on here.
I remember back in the "old days" 1980....we paid 13%
If 1 point is $1000 for you, then relatively speaking you have a "small" loan. Some people here have car loans that big. That's probably part of the reason for the higher rate than other people are talking about. It would take you almost 3 years to get payback from that 1 point (with savings of about $10k over 30 years), so it depends on how long you expect to stay. Either way, the total difference in your cost is fairly low because the principle amount isn't that large.
FYI, you can go to websites like Bank of American or Washington Mutual, etc... and get their rate info.
If he's not motivated to change his fees then someone else will do the loan. Banks on the other hand have a tougher time lowering their rates/fees
Quote:
Originally Posted by SmartMoney
First, your broker has zero motivation to find you a better rate. The closer you get to your closing date, the motivation dwindles even more. The only way to make sure you are getting the best rate is for you to get in touch tomorrow with a small bank that can move fast - a bank that approves and closes their own loans. (Probably too late now for your loan to make it start to finish with another broker). Get a duplicate loan app rolling, including appraisal. Yes, you will have a duplicate appraisal fee. But, come the 23rd, you will be able to call your bluff when your broker says he can't find you better. Then like magic, he will have better rates for you.
The question is, are you motivated to act for the better rate - major motivation required, because after then next 48 hours, the broker knows he has you over a barrel.
(If your loan is FHA, slightly different game plan, but still one where you can have the upper hand).
If 1 point is $1000 for you, then relatively speaking you have a "small" loan. Some people here have car loans that big. That's probably part of the reason for the higher rate than other people are talking about. It would take you almost 3 years to get payback from that 1 point (with savings of about $10k over 30 years), so it depends on how long you expect to stay. Either way, the total difference in your cost is fairly low because the principle amount isn't that large.
FYI, you can go to websites like Bank of American or Washington Mutual, etc... and get their rate info.
So what you are saying then is the smaller the loan the higher the rate? If I am understanding you correctly. If I was going to have the loan for a long time I might worry about paying down for a lower rate, but our plan is to pay if off in 3 years. I still feel pretty good about 5.1.
If he's not motivated to change his fees then someone else will do the loan. Banks on the other hand have a tougher time lowering their rates/fees
My point exactly. He's complacent and every day, that complacency is stronger.
The problem now is finding someone that can turn it around in 14 days to call his bluff. CW, BofA, and WF are all taking 21 days retail for purchases (60 days on refinances!) and on their wholesale side, 4-7 business days to underwrite. Some investors are at 3 days, but not many. Time is almost up on this one and the broker knows it.
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