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Old 01-16-2008, 01:56 PM
 
Location: Minneapolis
129 posts, read 370,915 times
Reputation: 43

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I was working with a mortgage broker for buying a new home. Then Countrywide gave me a deal I couldn't refuse - a T.A.M.I. rate of 6.0% - so I locked it in.

So today I received an email from the broker I was working with saying that interest rates have dropped, and he is offering a T.A.M.I. rate of 5.75%.

Can I get out of the Countrywide deal, and go with the broker? Or once I'm locked in, is that it?
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Old 01-16-2008, 02:18 PM
 
Location: NC
1,264 posts, read 2,203,669 times
Reputation: 554
How are you locked in? Did you put money upfront for an application fee?
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Old 01-16-2008, 02:27 PM
 
Location: Minneapolis
129 posts, read 370,915 times
Reputation: 43
The interest rate is locked in. I did put up $380 for a non-refundable appraisal fee.
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Old 01-16-2008, 02:38 PM
 
Location: NC
1,264 posts, read 2,203,669 times
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If you go to a different lender/broker, you'll probably have to pay for another appraisal.
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Old 01-16-2008, 02:42 PM
 
Location: Minneapolis
129 posts, read 370,915 times
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Thanks ChipL. If that is the only problem with getting out, it would be worth it for me. Montly payments will end up being about $60/month less, so will make up the $380 appraisal fee in about 7 months, after that it's $60 more a month in my pocket - hey, maybe now I can afford cable!
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Old 01-16-2008, 03:14 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,679,710 times
Reputation: 1008
T.A.M.I??

what's that?

If you're putting 20% down..and have 720 score....200k loan amount...you should get at least 5.5%.
There are some lenders that are offering 5.375% for 30yr fixed
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Old 01-16-2008, 03:39 PM
 
4,987 posts, read 12,689,372 times
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Quote:
Originally Posted by banker0679 View Post
T.A.M.I??

what's that?

If you're putting 20% down..and have 720 score....200k loan amount...you should get at least 5.5%.
There are some lenders that are offering 5.375% for 30yr fixed
Countrywide talk for LPMI (Tax Advantage Mortgage Insurance).
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Old 01-16-2008, 03:39 PM
 
Location: Minneapolis
129 posts, read 370,915 times
Reputation: 43
Tax Advantage Mortgage Insurance (T.A.M.I.). I'm putting 5% down. The T.A.M.I. brings my interest rate from 5.375% to 6.0%, but mortgage insurance is waived. Ends up saving me about $130/month in payments. The disadvantage is that when I've built up 20% equity, I can't drop the mortgage insurance, though I could refinance.

Any opinions on this approach?
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Old 01-16-2008, 03:42 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,679,710 times
Reputation: 1008
Yes.....if you have a 720+...and 200k loan amount...you should get 5.5-5.625% with 1 origination fee.

You wont be in the 20% equity...in at least 7-10yrs.
You'll probably refinance before that.

Quote:
Originally Posted by ciJay View Post
Tax Advantage Mortgage Insurance (T.A.M.I.). I'm putting 5% down. The T.A.M.I. brings my interest rate from 5.375% to 6.0%, but mortgage insurance is waived. Ends up saving me about $130/month in payments. The disadvantage is that when I've built up 20% equity, I can't drop the mortgage insurance, though I could refinance.

Any opinions on this approach?
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Old 01-16-2008, 03:49 PM
 
Location: Minneapolis
129 posts, read 370,915 times
Reputation: 43
Quote:
Originally Posted by banker0679 View Post
Yes.....if you have a 720+...and 200k loan amount...you should get 5.5-5.625% with 1 origination fee.

You wont be in the 20% equity...in at least 7-10yrs.
You'll probably refinance before that.
Sorry, I don't understand. So you think going with the TAMI is a good approach?
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