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.
Your loan will be priced (determined) based on the median (middle) score of the lowest borrower. So, absolutely, if your fiancee is qualified on his/her own, it may be best to leave you off the loan.
Many factors are in play when quoting a customer a rate. Besides credit score, location of the property (state), loan amount, length of lock required are all considered when locking a loan. In your case, if your score is below 600, it could add as much as 1.5 discount points to the cost of the loan. Example: Let's say today I have a quote at 6% with zero points, provided the score is above 620. However, if there is one borrower w/ a score of 580, I have to add 1.5 points, so now that quote is 6% and 1.5 points. So, if you want zero points, my only solution is to increase the rate.....and it can be as much as .75 (high) to .50 (typical) in rate.....so now, because of the low score, that 6% is now a 6.50% with zero points. That is why it is so dangerous to go to a site, even bank rate, to find your rates.
How dangerous? Because the quotes you get are one shot deals...one shot wonders. The individual on the other end of the phone may not care if they screw up your loan or not. The individual may not care if that real estate agent makes sure none of her clients ever use you. (If they are 1/2 across country, especially).
Consumers can be what my mother use to call "penny foolish" by being obsessed with the best rate. (I know that is not your case, your post referred to "fair" rate which is almost never heard from a consumer, it's always "best.") Let's face it, it's human nature to want the best.....but the best is only good if it is delivered. I can think of two examples w/out busting any braincells. First, that lender you call online......and the entire time you are quoted the 6%, with the 1.5 point add-on not mentioned. Everything is pulled together and they submit to the investor. Good news, your loan was approved. The bad news? Your loan was penalized 1.5 points for the low score. Second example: Your contract offer was accepted to buy that foreclosure you really, really wanted. The seller came back and said you had to close by the end of the month (say it's the 12th). If you don't close on the 30th, you could either forfeit your $5,000 earnest money, or, you could be penalized $100 per day until closing occurs. So, all is well and good, but the loan officer forgot to tell you underwriting and processing is backed up and no closings are occurring in under 3 weeks (true, absolutely true of the national lender I just left - but they had the best rate on the streets).
So what is a wanna be homebuyer to do? Ask for referrals...Everyone assumes the real estate agent is getting kick backs from the lender. Only if they are married. (Oh, I am sure it happens somewhere, but it is very illegal). The lender refers that lender for 2 reasons: reputation and they want the deal to close. Only a trustworthy referral insures that result. Or, ask someone you respect if they know of a good loan officer. It's sad, but those with the most horrible experiences make sure everyone in listening distance knows how bad they had it in a transaction. But the ones that are quiet are usually the ones that had the great experience. And finally, call around in the area you plan to buy...call the local real estate offices and tell them you are looking to refinance and who would they (the person on the other end) recommend to their <mother, brother, child, boss>. This may take a bit more leg work, but one name will come up more than once. (And, I would recommend you do not work with anyone connected to a real estate owned mortgage company.....your agent could take that as a slap in the face).
Feel free to DM me for some sites to use AS A YARDSTICK, no more, no less. As for your fair quote, not knowing your score, I would estimate at zero points you are looking at 6% BEFORE any add-ons for low scores. Trust your gut about people......it's only when we let someone persuade us we find we usually make a mistake.
615 should not receive a penalty. 10% down is considered a compensating factor, so that is only good in when it comes to underwriting. This morning, 6% w/ zero points would have been typical.....we are seeing wild swings, so who knows at the end of the day...I haven't had a chance to read the various report for today, but suspect we won't see any rate improvement until Congress gets this massive rescue package through....otherwise, money is going to be very expensive.
One thing you may want to consider or have your loan officer review.....what happens if you take just 5% down and use the other 5% for points for a permanent rate buydown.........
For the naysayers.......wait a minute.........
Okay, it's about a $54 difference for the increased loan amount....but did you know all the discount points are tax deductible? If it makes the difference between 5.25% and 6% that gap in difference will narrow.
I am not saying to do it.....I am, however saying, you should have your loan officer run the analysis. It's worth reviewing the numbers.
there is more than the rate that you have to look at.
Someone can quote 6% with no points but are they charging 2-3k in other fees?
Make sure to review all good faith estimates, and compare the 800 lines.
Some lenders calculate the APR differently so you may see different APRs for the same rate/fees.
If you want you can post your good faith estimate here, and we can help you out.
Also, be weary of anyone that sends you a direct message or asks you to send a direct message.
This IS against TOS. //www.city-data.com/forum/mortg...iscussion.html There are large sites that can assist you with rates or you can post your rates here for others to critque.
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.
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.
