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We are building a house and I want to go with one of the builder preferred lenders so that he will pay some of the closing costs.
Here is what one of them gave me today:
6% with lender paid PMI on a 100% finanaced loan with a 1 % origination fee. The closing costs are going to be around $5500 with all the taxes and insurance they pay for this program but that's ok. We can't lock right now but does this sound like a good program? I'm trying to get educated on all this stuff.
We are building a house and I want to go with one of the builder preferred lenders so that he will pay some of the closing costs.
Here is what one of them gave me today:
6% with lender paid PMI on a 100% finanaced loan with a 1 % origination fee. The closing costs are going to be around $5500 with all the taxes and insurance they pay for this program but that's ok. We can't lock right now but does this sound like a good program? I'm trying to get educated on all this stuff.
Yes. My husband and I both have excellent credit scores. We've worked very hard to get them there but thank goodness it's going to pay off now. Since we can't lock yet, I don't know if it'll be that good when we can. But I thought it sounded pretty good. Thanks!
We are building a house and I want to go with one of the builder preferred lenders so that he will pay some of the closing costs.
Here is what one of them gave me today:
6% with lender paid PMI on a 100% finanaced loan with a 1 % origination fee. The closing costs are going to be around $5500 with all the taxes and insurance they pay for this program but that's ok. We can't lock right now but does this sound like a good program? I'm trying to get educated on all this stuff.
Trust me, your paying for those fees one way or another. If its not at the closing table, its being reflected in a higher purchase price and being financed over the term of the loan. Not always a bad thing, but just stating a fact.
You might be able to get 100% financing, 5.9%, with 0% origination fee simply by going to your own bank since you state you have good credit. That 1% is most likely paying your closing costs. It never hurts to get a 2nd opinion.
Yes. My husband and I both have excellent credit scores. We've worked very hard to get them there but thank goodness it's going to pay off now. Since we can't lock yet, I don't know if it'll be that good when we can. But I thought it sounded pretty good. Thanks!
It does sound good as of yesterday, but it still sounds too good to be true to me. Buiders' lenders are not famous for giving the best rates. I just locked last Thursday (also builder's lender) - perfect credit, 20% down, smaller loan, though... might make a difference. I did a 60-day lock, which is more expensive, but even on a 30-day lock it would've been 6.25%. Granted, the rates apparently did go down since then till yesterday, but that's 100% financing... Perhaps your loan amount is much higher. As we know, if you owe less, you have a problem; if you owe more, the bank has a problem , which it may be willing to avoid.
May I ask who's the lender? Just out of curiosity. I sure hope not Countrywide.
Do it before the fed lowers the rate in two weeks.
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Hmm...
, which it may be willing to avoid.
