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Just out of curiosity, is it customary for a fixed rate to remain the same for months? In January when we first started shopping around, our mortgage broker told us the VA fixed rate was 5%. I got a closing date today, ready to lock in my loan rate, and it's still 5%. I was kinda hoping for 4.75% or maybe 4.85... but she said it's still 5%. Is it possible to negotiate the VA rate or is that something fixed by VA? Or is that the purpose of buy down points? Our 5% is with no points and 1% origination.
We locked in at 5% with no points and 1% origination as well during the month of March. We've not moved in yet because it's still under construction.
At the time, everything but VA rates had bumped up just a bit to 5.5% the week we locked. We'd been watching the VA rates and they had stayed the same as you said since January.
I really don't think you're going to be able to negotiate lower than 5% with no points.
So we know it was just a matter of time before the VA bumped up as well. I have no explanation for why their rates have remained so steady all this time. I just wanted to let you know that your mortgage banker is not telling you anything but the truth.
And, by the way, I'm happy with my 5%. That, combined with the significant drop in home values, made purchasing our first home so doable.
We've never owned our own home. Our mortgage will be $350 less a month than we pay in rent right now! How could we NOT own a home with those numbers?
Location: central, between Pepe's Tacos and Roberto's
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VA does not set rates. They have no say in market rates or discount points (you should have signed a disclosure that mentions this). VA and FHA rates do not move as much as conventional rates, and they have both been fluctuating between 4.875% and 5.25% over the last month or so. 5% is a decent rate today, but you should (may) be able to get 4.875%. If you were willing to pay a discount point you may be able to get 4.5% or 4.625%. That does not mean that you're particular lender can actually offer below 5% as all lenders price differently. Also there may be some pricing hits that I'm not aware of so take my comments for what they are worth which is not much considering I know nothing of your scenario.
We purchased our first home using VA loan. We locked in our mortgage rate on march 30th at 4.74% fixed with no points, no funding fee, no origination fees with pHH. That whole week prior to us locking in our rate, it was around 4.92%. I was told that VA/FHA loans have higher mortgage rates then typical conventional loans since there is smaller or no down payment.
I got locked in at 5% best rate for the time when I bought my house and now I see its a bit lower, but I am pretty happy with 5% seeing how over a year ago or more the average rate was 6 or 6.5%
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