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I'm finding that all banks now have some sort of fee (0.5% to 0.375%, is this typical?) to renegotiate the rate if the rates dip even more around closing time. Is there anyone out there with free float-downs anymore?
Can anyone tell me if there is usually a written statement/policy I can get as a consumer to backs this up? I would hate to apply with a bank and then 20days later be told that the fee to renegotiate is now 1% instead of the 0.5% they had previously quoted me.
Its nerve wracking trying to figure out if we should lock or just float along given this unprecidented economic situation we are in...
I'm finding that all banks now have some sort of fee (0.5% to 0.375%, is this typical?) to renegotiate the rate if the rates dip even more around closing time. Is there anyone out there with free float-downs anymore?
Can anyone tell me if there is usually a written statement/policy I can get as a consumer to backs this up? I would hate to apply with a bank and then 20days later be told that the fee to renegotiate is now 1% instead of the 0.5% they had previously quoted me.
Its nerve wracking trying to figure out if we should lock or just float along given this unprecidented economic situation we are in...
It's starting to look like you are driving yourself insane in your quest for the rate, and it's my opinion it's gone from getting a fair deal to must have the best possible deal. Even those of us in the industry for over 20 years don't get the best deal. In fact, most of us get our great deal because we get our loans for cost as an employment perk.
My mantra: I fear you are going to lose sight of the big picture in your chase. For example, investors are now considering what length lockins they will accept, due to too many locking for 30 days when the systems are jammed. We may be looking at no one accepting less than a 60 day quote by the end of the month. Other lenders are looking to collect a deposit on lockins to prevent the rate shoppers from tying up their administrative staff, only to walk away because they no longer like their lock in. And what determines who gets which policy? It depends, could be lock date, application date, case number date and so on. And that is not even including the rumored underwriting changes, now that lower rates are here.
There are so many other as critical (if not more critical) issues other than rate, it wouldn't take much for someone to "reel you in on rate" and surprise you somewhere else. You need to find someone you trust that can lend in your state and have them guide you. As business picks up, finding that person is going to become more of a challenge.
Hi, I appreciate your response and yes, its always good to be reminded of the bigger picture.
I start to wonder, is it my own fault that I'm having a hard time trusting any lenders?
For example, as nice as our broker has been, he tends to glaze over explaning things. He tends to say "I won't bore you with the details" way way too much in my opinion. Its hard to completely trust that, but maybe its just me.
I've been upfront with every person I've talked to and its hard when I feel like I don't get the same respect back - especially when I don't get answers to what seems like straight forward questions to me.
If all banks are changing their policies day by day, how do I feel any more assured that my broker will actually be on top of all these new stipulations? You say there are other critical issues other than rate. Well, no one has ever educated me on what that might be... so I've tried to do some reading on my own and I guess I'm still not quite there yet.
If you have the time, keep calling around and establish relationships with bank loan officers that will respond either by phone or email back to you. Not all loan officers are the same. In my case, I'm grateful that I persisted in finding another loan officer from the bank we ended up going with after the 1st one was so unresponsive. I was all ready to write the bank off but they ended up having the best rates for me. They also offered one free float-down (to reasonable rate that hovered slightly above that market rate) and a rate that held for 60days.
In my case, I had the time to do the research (call banks, establish relationships and email daily for rate updates) and found out that my mortgage broker COULD NOT get the best rates for us despite his song and dance. His rates were consistently higher. On the odd day, he could match the best rates. I don't get how the mortgage market works and why wholesale prices are not better. I feel for the guy too because I understand he has to make a living. I am a nice person and always want to do the right thing but at the end, I had to literally SMACK myself. Its not about owing anyone anything, you have to look out for yourself and if someone is giving you the best rate and terms, YOU TAKE IT!
Good example of exactly what WORKING to get your best rate entails!
Quote:
Originally Posted by PPGNY
If you have the time, keep calling around and establish relationships with bank loan officers that will respond either by phone or email back to you. Not all loan officers are the same. In my case, I'm grateful that I persisted in finding another loan officer from the bank we ended up going with after the 1st one was so unresponsive. I was all ready to write the bank off but they ended up having the best rates for me. They also offered one free float-down (to reasonable rate that hovered slightly above that market rate) and a rate that held for 60days.
In my case, I had the time to do the research (call banks, establish relationships and email daily for rate updates) and found out that my mortgage broker COULD NOT get the best rates for us despite his song and dance. His rates were consistently higher. On the odd day, he could match the best rates. I don't get how the mortgage market works and why wholesale prices are not better. I feel for the guy too because I understand he has to make a living. I am a nice person and always want to do the right thing but at the end, I had to literally SMACK myself. Its not about owing anyone anything, you have to look out for yourself and if someone is giving you the best rate and terms, YOU TAKE IT!
In my experience there are equal odds that the best terms come from either bank, credit union, or mortgage broker, you won't know that until you get the contact from them. Technically you could be misled by any one of the above too -- you can't really lock until your app in the pipeline.
If you can't let emotions get the best of you -- the best terms are what you want.
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Good example of exactly what WORKING to get your best rate entails!
