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I'm a first time home buyer with 800+ score (stable income, no previous financial issues, etc.). 20% Down.
I have received the following numbers -
Loan Amount : $260,000
Interest Rate : 2.75
Term: 30 Years Fixed Conventional
Monthly: 1061.43 + 715 Escrow(includes property taxes and Home Owners Insurance)
Estimated Closing Costs: 14303 (Total loan cost include Loan origination and escrow for yearly property taxes and 3 months home insurance, no lender credit and 595 loan origination fees)
Estimated cash to close: 76053
Does these numbers look good to fellow home owners? Is the rate anywhere being lowest?
I figured people who refinance typically get lower rates (please correct me if I'm wrong)?
Any other tips will be most appreciated.
I'm a first time home buyer with 800+ score (stable income, no previous financial issues, etc.). 20% Down.
I have received the following numbers -
Loan Amount : $260,000
Interest Rate : 2.75
Term: 30 Years Fixed Conventional
Monthly: 1061.43 + 715 Escrow(includes property taxes and Home Owners Insurance) Estimated Closing Costs: 14303 (Total loan cost include Loan origination and escrow for yearly property taxes and 3 months home insurance, no lender credit and 595 loan origination fees)
Estimated cash to close: 76053
Does these numbers look good to fellow home owners? Is the rate anywhere being lowest?
I figured people who refinance typically get lower rates (please correct me if I'm wrong)?
Any other tips will be most appreciated.
I'm a first time home buyer with 800+ score (stable income, no previous financial issues, etc.). 20% Down.
I have received the following numbers -
Loan Amount : $260,000
Interest Rate : 2.75
Term: 30 Years Fixed Conventional
Monthly: 1061.43 + 715 Escrow(includes property taxes and Home Owners Insurance)
Estimated Closing Costs: 14303 (Total loan cost include Loan origination and escrow for yearly property taxes and 3 months home insurance, no lender credit and 595 loan origination fees)
Estimated cash to close: 76053
Does these numbers look good to fellow home owners? Is the rate anywhere being lowest?
I figured people who refinance typically get lower rates (please correct me if I'm wrong)?
Any other tips will be most appreciated.
Thank you!
How many lenders have you gotten quotes from? That should tell you something.
Thank you all. I had only gotten 3 quotes, one from better.com which was way too far at 3.2 and other 2 were comparable. When I heard someone got 2.5 for 30 yrs fixed (not sure about points though), I was not sure if 2.75 is still OK (no points and only about $500 lender fees). So thought to check here in this forum.
Would you recommend buying points further or is that something is not a good financial choice?
Thank you all. I had only gotten 3 quotes, one from better.com which was way too far at 3.2 and other 2 were comparable. When I heard someone got 2.5 for 30 yrs fixed (not sure about points though), I was not sure if 2.75 is still OK (no points and only about $500 lender fees). So thought to check here in this forum.
Would you recommend buying points further or is that something is not a good financial choice?
Buying points is basically a long term investment. Let’s say you buy a lower interest rate for $2000. The lower interest rate saves you $40a month. It will take you 4 years to break even and start saving money. Basically is that money worth more to you now or 4 years down the line?
Buying points is basically a long term investment. Let’s say you buy a lower interest rate for $2000. The lower interest rate saves you $40a month. It will take you 4 years to break even and start saving money. Basically is that money worth more to you now or 4 years down the line?
this.
also, use a mortgage calculator on different rates of interest rates that you will have paid for a period of 30 years.
Of the $14.3k mentioned, a good amount goes to buying interests upfront. I would ask the lender break these down for you, one by one. The Good Faith Estimate should spell it all out line by line. Wouldn't hurt to negotiate the upfront interest.
For now, I would lock the rate (it costs you nothing)...if they said they will charge you to lock in the rate, back out.
Buying points is basically a long term investment. Let’s say you buy a lower interest rate for $2000. The lower interest rate saves you $40a month. It will take you 4 years to break even and start saving money. Basically is that money worth more to you now or 4 years down the line?
Problem is points lock you in and increase your upfront costs that may never be recouped if you don't stay in the house long enough.
Also points make future refinances more expensive if you haven't gone past the payback period yet.
I'm a big believer in not paying points, and using that money instead to pay down the principal to begin with, especially with rates being so extremely low right now.
If the rates keep getting lower, I can still refinance without points restricting me due to the built-in loss that doesn't go away before the payback period.
I advise paying no points and use that money to pay down the principal so effective interest rate is reduce to begin with. This preserves your options in the future should one need to move before pay-back period is complete, or if rates drop further to take advantage of new lower rates.
I'm locking 30-years at 2.500%, no points. I'd really like to see a breakdown of Origination costs.
That is incredible. Can you please share the lender or loan company you are getting such amazing rates with???
How did you get such an incredible low rate?
Frankly, when I see people post such amazing rates, it makes me angry...because I call multiple lenders and none of them can touch this rate...it really makes me wonder how it is possible.
Please share details with us.
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