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Old 04-30-2008, 09:07 AM
 
31 posts, read 272,821 times
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I'm going with FHA with Pulte Mortgage for the purchase of a new house in Michigan (declining market and didn't have enough to hit the 10% mark). Pulte is quoting me a 6.5% on a 30-day lock. We close on May 12th. Would it make sense to wait until Friday and get a 10-day lock? Is there potential for the rate to be lower?

I figured that Pulte's rates would be higher in light of the tremendous amount of incentives they are giving me ($40K), but their rate seems a bit high (though it is the same as Wells Fargo). Any insight (not advice) would be appreciated. Thanks!
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Old 04-30-2008, 09:53 AM
 
179 posts, read 514,993 times
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I recently locked in with NVR Mortgage which is the Ryan Homes company. I had to shop around to get the best rate since they quoted me 6.125%. My husband and I each had a 700+ credit score and I thought that was ridiculous. They ended up matching the best quote I got with a 1% discount fee. The interest rate was 5.625%. This was last Tuesday or Wednesday.
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Old 04-30-2008, 10:03 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 16,537,846 times
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what is your loan amount?
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Old 04-30-2008, 10:59 AM
 
5,339 posts, read 14,071,350 times
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Quote:
Originally Posted by michiganalum View Post
I'm going with FHA with Pulte Mortgage for the purchase of a new house in Michigan (declining market and didn't have enough to hit the 10% mark). Pulte is quoting me a 6.5% on a 30-day lock. We close on May 12th. Would it make sense to wait until Friday and get a 10-day lock? Is there potential for the rate to be lower?

I figured that Pulte's rates would be higher in light of the tremendous amount of incentives they are giving me ($40K), but their rate seems a bit high (though it is the same as Wells Fargo). Any insight (not advice) would be appreciated. Thanks!
Are you paying an origination fee and/or any points? Even without knowing this I would say that rate is .5% over the market rate. You should be at 6.0%.
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Old 04-30-2008, 12:44 PM
 
31 posts, read 272,821 times
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Quote:
Originally Posted by TimtheGuy View Post
Are you paying an origination fee and/or any points? Even without knowing this I would say that rate is .5% over the market rate. You should be at 6.0%.
Mortgage is $268K. Pulte is paying the origination fee as part of the closing costs. No discount points. I agree it's too high. Does anyone have any experience with Pulte on this board? Will they match competitive market rates if you threaten to walk?
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Old 04-30-2008, 01:42 PM
 
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I am closing with Pulte on Friday. It was a long drawn out battle but I finally got them to match my best offer. I essentially told them "Thanks, but no thanks, I'll use bank XYZ". The guy didn't believe I was getting the rate I was, I had to fax him my GFE and approval letter. But in the end they did match it and my closing costs are a lot less.
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Old 04-30-2008, 01:49 PM
 
31 posts, read 272,821 times
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Quote:
Originally Posted by BlondieeAggiee View Post
I am closing with Pulte on Friday. It was a long drawn out battle but I finally got them to match my best offer. I essentially told them "Thanks, but no thanks, I'll use bank XYZ". The guy didn't believe I was getting the rate I was, I had to fax him my GFE and approval letter. But in the end they did match it and my closing costs are a lot less.
Thanks for the info. By the way, what rate was Pulte giving you and what rate did they end up matching?

I did some comparison shopping over the past couple of hours and got quotes from 5 different lenders. I called Pulte and left a message about it. I got a call back 15 minutes later and we spent 30-minutes debating the issue. My loan counselor is going to 'forward' the information to someone and call me back tomorrow. At least I know that there is room for negotiation here as I am not willing to pay the 6.5% rate.
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Old 04-30-2008, 02:34 PM
 
16 posts, read 65,962 times
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The original rate Pulte quoted for a 200K, 30 yr fixed conventional loan was 6.5%. I told them to have a nice day. They then came back with 6.125%, which was matching what the other bank offered, but it had me buying a point. I told them I wasn't buying points. Finally he got my rate down to 5.99%. That did include me purchasing a half-point, but I negotiated my way out of some other fees so it worked out in my favor in the end.
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Old 04-30-2008, 02:58 PM
 
31 posts, read 272,821 times
Reputation: 24
Quote:
Originally Posted by BlondieeAggiee View Post
The original rate Pulte quoted for a 200K, 30 yr fixed conventional loan was 6.5%. I told them to have a nice day. They then came back with 6.125%, which was matching what the other bank offered, but it had me buying a point. I told them I wasn't buying points. Finally he got my rate down to 5.99%. That did include me purchasing a half-point, but I negotiated my way out of some other fees so it worked out in my favor in the end.

Glad to hear this. I got GFEs from some other lenders, so I'll be prepared to send them over if asked.
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Old 04-30-2008, 04:03 PM
 
5,339 posts, read 14,071,350 times
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Clearly builders should be banned from being lenders, at least on their own sales. There is a huge conflict of interest and they hose the borrowers to boot (or at least attempt to). IMO they should stick to building.
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