Lender only offering 2 options for mortgage (loan, pre-approval, credit, 30 year fixed)

[Jkswkmy]

Our offer on a house in Illinois was accepted and hoping to close in 30 days. The bank we had used for the pre-approval is now offering us only 2 options, 7 year Arm at 3.95% or 30 year fixed at 4.5% with .25% lender credit for closing costs. When asked about a rate without the credit, they said it was still 4.5%. Does this sound right ? This will be a jumbo loan with 20% down. Can anyone recommend other lenders in Illinois and do we even have time to shop around now.

[Pfhtex]

That does sound right. The spread between rate increments sometimes has large differences in revenue between each .125%. There is likely a wide swath between 4.5% and 4.375% that would trigger a large fee if you want to drop to 4.375%.

Have you asked about a 10-year ARM? That 30 year fixed looks pretty good in light of today's rates, is it a recent quote?

[LO/SF]

I don't lend for jumbo loans but try Bankrate.com . you can put your loan amount in and your State etc. and it will list the best current rates . Wish I could advise more but I do not originate jumbo's

good luck!