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Old 05-03-2009, 05:50 PM
 
Location: Boston
13 posts, read 42,721 times
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I plan to submit my loan application -- and if rates look good -- do a 60 day lock on Monday, May 4 (for end of June closing). I have emails out to 4 different mortgage lenders, but was curious if any brokers out there have a rate sheet to know if I'm getting a good deal. Loan is for $360K in Durham, NC ($450K offer, 20% down); Credit is excellent and salary keeps debt-to-income ratio well within a comfortable range.

Another question, what time do the rates usually come out for the day?
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Old 05-04-2009, 08:59 AM
 
Location: Boston
13 posts, read 42,721 times
Reputation: 15
Anyone? Anyone?
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Old 05-04-2009, 09:44 AM
 
Location: MN
761 posts, read 3,156,060 times
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My mortgage broker says she gets the rates around 10:30am
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Old 05-04-2009, 11:05 AM
 
Location: Ocean County, NJ
228 posts, read 1,088,709 times
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My broker says to call between 12pm and 4pm. I just called and no answer... perfect.
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Old 05-04-2009, 11:18 AM
 
Location: MN
761 posts, read 3,156,060 times
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Quote:
Originally Posted by forcedfx View Post
My broker says to call between 12pm and 4pm. I just called and no answer... perfect.
Isn't that convenient? I needed to get ahold of mine today too, and she is out of the office... I suppose, they get days off too.. LOL
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Old 05-04-2009, 11:21 AM
 
Location: Wake Forest, NC
835 posts, read 3,742,133 times
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Quote:
Originally Posted by jjsh View Post
I plan to submit my loan application -- and if rates look good -- do a 60 day lock on Monday, May 4 (for end of June closing). I have emails out to 4 different mortgage lenders, but was curious if any brokers out there have a rate sheet to know if I'm getting a good deal. Loan is for $360K in Durham, NC ($450K offer, 20% down); Credit is excellent and salary keeps debt-to-income ratio well within a comfortable range.

Another question, what time do the rates usually come out for the day?
Rates are out. How are your closing costs structured? Are you paying discount? Are you paying broker fee/ origination? Are you paying 3rd party costs like: appraisal, attorney, recording etc? these all affect rates.
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Old 05-04-2009, 11:28 AM
 
Location: Boston
13 posts, read 42,721 times
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From the lenders I've checked with so far, the GFE has a "processing or comittment" fee of about $500 as well as the standard 3rd party costs (totaling about $2000-$2500 depending on lender). But I'm looking to avoid an origination fee if possible (one lender quoted a .75 origination fee).
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Old 05-04-2009, 11:38 AM
 
Location: Wake Forest, NC
835 posts, read 3,742,133 times
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Today for a 60 day rate lock here in NC you would be at 5.375% with no origination fee, just 3rd party costs which are about right in the $2000- $2500 range for a purchase this size.

Rates have gone up over the last few days so I would consider waiting until 2 things happen- rates reverse which the secondary markets are beginning to do today and you can get a shorter term rate lock....the shorter you lock the better the rate.
This decision will be based on your tolerance for risk.
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Old 05-04-2009, 06:59 PM
 
Location: Plano, Texas
1,675 posts, read 6,621,764 times
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If you have credit scores over 740, today you should be able to get a 30 year fixed at 4.75%.. that would assume you pay all closing costs and 1 point loan origination/discount/broker fee. Now, you can elect not to pay the first point, but your interest rate will be higher, more like 5.125 to 5.25.

Many consumers say they dont want to pay a point, well, everyone does. You either pay it up front, or you pay it over the life of the loan with a higher rate. Which way do you think costs the most. Paying $3600 up front or taking a .375 to .50 higher interest rate? Getting a mortgage is like buying anything else, a better computer costs more money, a better attorney costs more money a better mortgage rate costs more money. I do find that many consumers cant see the forest for the trees. They see the upfront cost but dont take into account what they will save over the life of the loan. Now, if you are staying at this home for less than 3, than it will make more sense to pay less costs and take a higher interest rate. am quoting those rates from one of the wholesale lenders i deal with in Texas, rates do vary from state to state.

My best recommendation, ask your loan officer to provide you 3 quotes. One with you pay all closing costs and 1 point. One with you paying all closing costs and no points. And one with you paying no costs at all. If your loan was in Texas, the rates would be 4.75, 5.125 and 5.625. Just realized you asked about 60 day lock, add about .125 to the rates above. I wouldnt suggest you do a 60 day lock. Hold out until you are 30 days to closing.
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Old 05-05-2009, 11:24 AM
 
Location: Boston
13 posts, read 42,721 times
Reputation: 15
Thanks everyone for all of the info and advice -- it ended up being a hectic afternoon as I juggled different quotes. I was especially surprised to find that some banks were willing to negotiate after hearing about the rate quotes of other banks. I am still waiting on final paperwork, but looks like I was able to get 4.75 WITH 60 day lock, 0 points, 0 origination fee. This was exactly our target rate -- we would have declined locking anything higher, but since we are pretty risk averse we decided to go with the bird in the hand. And from the quotes I was getting, I consistently found that 1 point (or a 1% origination fee) changed the rate by only .25 -- based on my calculations, that would break even after 6 1/2 years in the house.
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