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My friend is at the end stretch for buying a short sale home from a bank. after a lot of waiting to see her final rate and monthly amount she got an offer of 6.250%. She thought this is high and when she questioned it she got back this reply:
" The rates are based on several different factors right now. Down payment, credit score, designation of property (primary residence, second home, etc.), property location and also the loan amount. Your loan amount is the largest factor in the rate you have been quote as it is below $100K. Each lender has what they call tiered pricing for the property state and loan amount. Being hat your loan amount is between the $30,000 and the $49,999 loan amount mark, you will be subject to higher rates. This is something every lender we use does and unfortunately it is something I cannot control. If you want to "buy" your rate down to certain percentage, let me know what rate and I will see how many points you would have to pay in order to get that pricing
I wish I had better news, but with the market in a "credit crisis", a lot of Fannie Mae's rules have become more rigid and the lenders are making pricing changes each day. The rate is less though than when we originally spoke in October 2008, as the rate we discussed then was high 6's."
This this seem to be in line with current reality? I advised her to seek an independent broker not one from a bank as I have read a lot of folks post on this web site. The following was her reply:
"I don't want to do that. If I don't decide on this house because it's a short sale, someone else will probably bid for it. And it's a good buy. I don't want to divulge all my information again to another lender who probably will come up with a similar rate or not much lower.
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