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Old 08-28-2007, 05:58 PM
 
553 posts, read 1,820,443 times
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Quote:
Originally Posted by jrod4 View Post
I am getting close to $9k in incentives from my builder for going with their broker. In the GFE, closing costs are a bit high so I compared to just going straight to the lender and the builder's broker is charging me 2 points for the same rate!

I still think it is a better deal...basically paying $5k to save $9k and I get a lower sales price which means lower taxes and supposed "immediate equity" because the house is worth $9k more than I will be paying for it.

I am going to try and get those points lowered, but even if they don't it is still a decent deal.
What is your rate maybe they are buying it down With those two points, or that is par and 1 and a half to two is normal.

Last edited by NY62; 08-28-2007 at 07:26 PM..
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Old 08-29-2007, 02:20 PM
 
9 posts, read 65,420 times
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rate the broker quoted me was 6.30% with 2 points...1 point which was to lock the rate for 240 days (home wont be built until March 2008).

when i went straight to the same lender, quote was 6.30% with no points and I would have to pay 1 point to lock for 240 days but that would go back into down payment or closing costs once I secured the loan with them.

Last edited by jrod4; 08-29-2007 at 02:33 PM..
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Old 08-30-2007, 10:34 AM
 
553 posts, read 1,820,443 times
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Quote:
Originally Posted by jrod4 View Post
rate the broker quoted me was 6.30% with 2 points...1 point which was to lock the rate for 240 days (home wont be built until March 2008).

when i went straight to the same lender, quote was 6.30% with no points and I would have to pay 1 point to lock for 240 days but that would go back into down payment or closing costs once I secured the loan with them.
I dont know your loan amount but basicly you are paying 1 point to get 9grand unless you are getting more then a 900000 mortgage you are not getting ripped. 1 point for locking that long seems fair but make sure it is in writing, they have a habit of floating rates to try and make more ysp, the good people will take there loses if it goes the wrong way, while the jerks will not tell you untill closing,and hit you with a higher rate. they will feed you some story and hope you will sighn anyway. Also check total closing cost on both deals you could be getting hit with two points from the lender and not even know it, loan origination fee is a point. Brokers are not allowed to charge that they have to put it as a point, banks dont. I dont know where you are buying but most builders are giving way better incentives then 9gs off for using "there guy" try like 6% towards closing costs then buy that rate way down with there money just make sure it is a fixed 30 year not some intro rate.good luck you are not getting a great deal but you are not getting ripped either.
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Old 08-30-2007, 08:28 PM
 
Location: Tucson
42,835 posts, read 82,129,770 times
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Quote:
Originally Posted by jrod4 View Post
rate the broker quoted me was 6.30% with 2 points...1 point which was to lock the rate for 240 days (home wont be built until March 2008).
Do you get to float down, though? It's widely expected that the mortgage rates will be lower by this time.
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Old 09-03-2007, 08:36 AM
 
Location: Virginia Beach, VA
2,124 posts, read 8,262,218 times
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hangglide, excellent information. Even in new construction, having your own agent and listen to their advice, can really help you.

Shelly
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