Mortgage brokers... (loan officer, premium, credit, 30 year fixed)

[ufcrules1]

I just sent an email to a company I'm thinking about using to re-fi. This is what he came back with below. However, I've been watching the 10 year treasury notes and I've seen it much lower than 2.72. This isn't my field so I don't know exactly how the rates work, but I do know they are tied to the 10 year T-NOTES. Please chime in....

"Market extremely volatile right now, but you picked the right day, will be historical lows. Investors are holding off on rates, but we should have some numbers in the next 30 minutes. When the rates come out, they will most likely last for a very short period of time as locks will be rolling in from all over the country."

[Daddys///M3]

Mortgage rates are NOT tied to Treasurys. The only thing that sets conventional and government mortgage rates are mortgage bonds, or mortgage backed securities.

I just got my company's pricing about 5 minutes ago and although I wouldn't say it's historical lows (think about a week in Jan and a week in Nov that were very low) it is very good. I personally will be looking to lock a couple today.

[ufcrules1]

Daddy's,
What kind of rate can you get?

[AndrewSoss]

Originally Posted by ufcrules1

I just sent an email to a company I'm thinking about using to re-fi. This is what he came back with below. However, I've been watching the 10 year treasury notes and I've seen it much lower than 2.72. This isn't my field so I don't know exactly how the rates work, but I do know they are tied to the 10 year T-NOTES. Please chime in....

"Market extremely volatile right now, but you picked the right day, will be historical lows. Investors are holding off on rates, but we should have some numbers in the next 30 minutes. When the rates come out, they will most likely last for a very short period of time as locks will be rolling in from all over the country."

While what he's saying is technically right, or at least close to right, he gives a pretty smarmy used car salesman vibe which I tend to avoid. He probably sends the same response to every prospect.

Find someone local to meet with face to face, get a referral, go on yelp.com. I've said it before, but:

Good Broker is better than a credit union is better than a bank is better than a bad Broker.

Finding the good brokers vs. bad brokers can sometimes be problematic, but high pressure is a pretty big red flag.

[Daddys///M3]

Originally Posted by ufcrules1

Daddy's,
What kind of rate can you get?

I would need quite a bit more information to answer that question.

Loan amount?
Property value?
Property type?
Occupancy type?
Location?
Rate and term refi or cashout?
FICO score?

[Daddys///M3]

Originally Posted by AndrewSoss

While what he's saying is technically right, or at least close to right, he gives a pretty smarmy used car salesman vibe which I tend to avoid. He probably sends the same response to every prospect.

Find someone local to meet with face to face, get a referral, go on yelp.com. I've said it before, but:

Good Broker is better than a credit union is better than a bank is better than a bad Broker.

Finding the good brokers vs. bad brokers can sometimes be problematic, but high pressure is a pretty big red flag.

Although I agree with the majority of this post, once should be careful not to confuse high pressure salesmanship with a sense of urgency. Because the market is so volatile right now, if you are working with someone who you have a pretty good professional relationship with and they inform you that rates are really good right now but have a chance of moving upwards over the next couple of days (they should be able to explain to you why they feel this way based on analysis they have done on technical data, hunches don't cut it) then by creating a sense of urgency they may actually be looking out for your best interests. This type of LO will always give you options as well, for example "Rates are very good this morning and if you were to lock today I could deliver x.xxx%. However, in my opinion based on mortgage bond data that I have been seeing the chances for profit taking and selling off are currently higher than the chances of any more big buying trends due to the current premium pricing of said mortgage bonds. Due to this I believe that rates have a chance of getting worse over the next week or two. If you would like to float we can definitely do that, but it may be a gamble, or we could lock today and guarantee your rate of x.xxx%. How would you like to proceed?".

If, as Andrew mentions however, the response seems canned as if it were a standard response to every prospect and said LO can't give you any reasons why they believe that rates will start to go up than it would seem to me like high pressure salesmanship. In a case like this it may be likely that the LO just wants to close as much as possible, disregarding the potential benefits to prospects and borrowers.

I also agree with Andrew's point about good brokers vs. bad brokers, which is why family, friend, and coworker referrals can be such a valuable tool when shopping for a mortgage professional to work with.

[ufcrules1]

Loan amount? 268k
Property value? 352k (appraised in Nov 08"...hasnt gone down)
Property type? SFH
Occupancy type? We live in it. Main dwelling
Location? Lewisville, Tx
Rate and term refi or cashout? I want to refi. Looking at 30 years fixed with 1 point and 30 year fixed no points.
FICO score? close to 800

[ufcrules1]

This is the email this mortgage broker just sent me. Wow.. I didn't realize GFE'S took that long.


"I am sorry but I don’t have the time for a formal GFE right now. Rates are out and outstanding. I can give you 4.65% with no points and 4.375% with one. Total lending charges, section 800 of the GFE will be about $1000, the rest is all title related and will be the same with anyone. Let me know if you would like to proceed?

[dad2jules]

Originally Posted by ufcrules1

This is the email this mortgage broker just sent me. Wow.. I didn't realize GFE'S took that long.


"I am sorry but I don’t have the time for a formal GFE right now. Rates are out and outstanding. I can give you 4.65% with no points and 4.375% with one. Total lending charges, section 800 of the GFE will be about $1000, the rest is all title related and will be the same with anyone. Let me know if you would like to proceed?

Rate and fees sound good, but the customer service obviously leaves something to be desired.
Your getting the Walmart version- cheap but no customer service- instead of the Saks version- prices higher but they'll do everything but shampoo your dog for you.
It's ultimately up to you who you want to work with. I'd look for the Macys version of a Loan Officer- maybe an .125% higher but they'll give you reasonable customer service.

[ufcrules1]

Agreed. When rates are good and they have plenty of business coming in the customer service falls off the planet. Its like that almost anywhere. I would never be that way with my customers but I see it everyday. Such is life....