U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Arizona > Phoenix area
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 02-09-2009, 01:04 PM
 
14 posts, read 47,386 times
Reputation: 17

Advertisements

I have 7 more days until I need to lock the interest rate on a new mortgage for a home purchase that is in loan processing. I currently have the following 4 example available from my lender as of today:

30 Year Fixed Rate

5.25% with 0.75 points and $0.00 premium pricing
5.125% with 0.875 points and $0.00 premium pricing
5.0% with 1.125 points and $0.00 premium pricing
4.875% with 1.375 points and $0.00 premium pricing


Interested in knowing folks opinion on whether they think new loan interest rates are likely to move up/down at all in relation to the TARP2 announcement tomorrow?

There's also the stimulus package, but not sure if that would impact rates or not..and it may not get signed until after I need to lock rate. Though I sure hope its signed before my 2/23 closing so I can get that $15k tax credit if that remains in final version of signed stimulus package.
Rate this post positively Quick reply to this message

 
Old 02-09-2009, 01:40 PM
 
419 posts, read 1,455,946 times
Reputation: 172
Quote:
Originally Posted by maybethistimearound View Post
I have 7 more days until I need to lock the interest rate on a new mortgage for a home purchase that is in loan processing. I currently have the following 4 example available from my lender as of today:

30 Year Fixed Rate

5.25% with 0.75 points and $0.00 premium pricing
5.125% with 0.875 points and $0.00 premium pricing
5.0% with 1.125 points and $0.00 premium pricing
4.875% with 1.375 points and $0.00 premium pricing


Interested in knowing folks opinion on whether they think new loan interest rates are likely to move up/down at all in relation to the TARP2 announcement tomorrow?

There's also the stimulus package, but not sure if that would impact rates or not..and it may not get signed until after I need to lock rate. Though I sure hope its signed before my 2/23 closing so I can get that $15k tax credit if that remains in final version of signed stimulus package.
Don't they offer a rate without points? As far as locking, I agree with many experts that say if you have a rate under 6%, lock it in.
Rate this post positively Quick reply to this message
 
Old 02-09-2009, 03:58 PM
 
682 posts, read 2,428,517 times
Reputation: 342
There are better rates out there now with no points. You can pick up your package any time before closing and take it to another lender.

Just because you filled out the paperwork with one lender doesn't mean that you have to use them. One point (1% of the purchase price) is a lot of money to throw away when other lenders do not charge this fee.

If you go to the real estate section of azcentral.com, there is a place to fill in figures and a list of mortgage companies will show their rates, some of which are better deals than what you have been quoted.

You might also let your loan processor know that you have found better rates and see if she will come down to a lower, better quote for you in order to keep your business.

altus2006
Rate this post positively Quick reply to this message
 
Old 02-09-2009, 04:06 PM
JH6
 
1,434 posts, read 2,918,133 times
Reputation: 1149
Bankrate.com is a good starter to get loan rates.

I wouldn't pay any points, its just throwing money away.

I bought a house in New York last march at a 30 year fixed for 5.5%.. I'm plenty happy with that.
Rate this post positively Quick reply to this message
 
Old 02-09-2009, 04:14 PM
 
14 posts, read 47,386 times
Reputation: 17
My preference was to keep the mortgage with same place I have all my banking/insurance for convenience sake. It definitely made my loan app and qualification/approval process easy. If there are better rates out there, I probably should of checked around. I just like this instituion, but am troubled if they're not being competitive.

Though appraisal has already been done and my good faith estimate deposit, so I thought I was sort of locked in now to this lender unless willing to lose those amounts.
Rate this post positively Quick reply to this message
 
Old 02-09-2009, 04:23 PM
 
682 posts, read 2,428,517 times
Reputation: 342
Quote:
Originally Posted by maybethistimearound View Post
My preference was to keep the mortgage with same place I have all my banking/insurance for convenience sake. It definitely made my loan app and qualification/approval process easy. If there are better rates out there, I probably should of checked around. I just like this instituion, but am troubled if they're not being competitive.

Though appraisal has already been done and my good faith estimate deposit, so I thought I was sort of locked in now to this lender unless willing to lose those amounts.
The appraisal should be honored by other banks, so the money is not lost. It is your choice if you want to throw away some money and make higher payments because you like the lender.

I will bet if you let the loan officer know that you can get better rates elsewhere that they will suddenly offer you identical rates in order to get your business.

That good faith estimate deposit should be a deposit on the house held by the Title company. It has nothing to do with the lending institution and they don't have your money.

altus2006
Rate this post positively Quick reply to this message
 
Old 02-09-2009, 06:42 PM
 
Location: Cave Creek, AZ USA
1,774 posts, read 5,981,771 times
Reputation: 1062
Quote:
Originally Posted by JustinH View Post

I wouldn't pay any points, its just throwing money away.
It makes plenty of sense for people who have the cash now, plan to stay in the house a long time and might be nearing retirement, when their cash flow will go down. While the rates posted above might not be a great deal, once you find the best deal, paying points can make it even better if your situation fits. Points are tax deductible as prepaid interest in the year they're paid. So....if you're closing in, say, November, your first payment wouldn't be until Jan. But if you have the cash, need a tax break for the year in which you're closing OR the seller concessions haven't been used up, points can be a great idea. They certainly pay for themselves depending on how long you plan to stay in the house.
Rate this post positively Quick reply to this message
 
Old 02-10-2009, 01:00 AM
 
Location: Arizona
123 posts, read 519,278 times
Reputation: 54
Paying points or an origination fee definitely makes sense if you will be in your home long enought to see the savings payback and more then likely in this market you will. Take the extra costs of the loan and divide it by the monthly payment savings and see how long it takes to get your money back and then figure how much you'll save over the time you expect to be in the house. What makes sense to you? Anyway you slice it its a great time to get a mortgage if you qualify. Don't over analyze it. Good luck.
Rate this post positively Quick reply to this message
 
Old 02-10-2009, 08:27 AM
 
203 posts, read 457,824 times
Reputation: 204
If you don't mind me asking, what % are you putting down with those rates. Curious as I'll be looking to capitalize on other's misfortune soon.
Rate this post positively Quick reply to this message
 
Old 02-10-2009, 09:02 AM
 
14 posts, read 47,386 times
Reputation: 17
Presently I'm only putting down 10%..keeping lot of cash out for improvements..its a bank owned property and needs some love. Whatever is left will go to principal after work done..with hope to wipe pmi off books.

Looks like rates just dipped down this morning .25% or more for same points..time to lock today I think. I am looking around as others suggested, although I'm starting to think these may not be too bad when compared to other lenders when you factor in all the different types of fees that are added into some loan packages. Been primarily focused on the loans with 1point or less. As also mentioned, we are planning to stay in this home for 10+ years..and at a certain point the calculations show me saving money paying the points, depending on how much fast we pay down the loan. The same .875 points would of bought me a 5.125 rate yesterday..now 4.875

As of now:
Rate Points APR
4.500% 2.000% 4.911%
4.625% 1.750% 5.017%
4.750% 1.250% 5.102%
4.875% 0.875% 5.196%
5.000% 0.750% 5.313%
5.125% 0.500% 5.420%
5.25% 0.500% 5.548%
5.375% 0.25% 5.65%
5.500% 0.125% 5.771%
5.625% 0.0% 5.887%
Rate this post positively Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Arizona > Phoenix area
Similar Threads
View detailed profiles of:

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top