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The seller finally agrees on the price. Now i'm shopping for mortgage. Can anybody share some recent mortgage shopping experience? Any info and recommendation will be deeply apreciated.
The seller finally agrees on the price. Now i'm shopping for mortgage. Can anybody share some recent mortgage shopping experience? Any info and recommendation will be deeply apreciated.
If you have a checking or savings account, have you checked with your bank yet?
If you have a checking or savings account, have you checked with your bank yet?
Yes, I did check with Suntrust, but their rate is not competitve.
I'm interested in 15 years fix. I have 800 credit score. The house is around 800k. We will put 50% down. I called a few local lenders and try to get the best rate possible.
I found there wasn't a tremendous savings on the rate for a 15 year vs. 30 year mortgage. With your good credit, downpayment, and staying below the jumbo loan category, you'll probably find 30 year rates in the mid-6s and 15 year in the high-5s/low 6s.
If you already know what kind of mortgage that you want (30 yr fixed, ARM, 5 yr balloon, etc.), then I would simply go online to find the best rate. Bankrate.com is my favorite source. Then choose the lender that you are most comfortable with. I found a mortgage broker locally whose rates were competitive, which made me feel more confident that I wouldn't have any issues not having the funds ready at closing.
If you don't know about different loan options, then find someone local to work with to educate you. Your best choice is not just based on your credit rating, but also on your personal situation. For instance, if you know that you are moving in 5 years, then you can get a better rate on a 5 year balloon loan than with a 30 year fixed.
You could also just go with a local mortgage broker and let them shop the market for you, but don't presume that this will necessarily get you the best rate. I started with the mortgage broker recommended by my real estate agent, but was sorely disappointed. My mortgage broker told me that I was locked in with the best rate, only to try to sneak in a full point of origination fee (above current market rates) without mentioning it to me. For him, this additional $4k in fees from me (on top of the profits from selling the loan to the lender) was in line with what he thought his normal profit margins should be. I couldn't see how he could come close to justifying it. I saved thousands going elsewhere to get market rates.
I didn't have any luck going directly to banks either -- in general, I found their rates to be about 3/8ths to 1/2 point higher than market rates. My broker sold my load to Wachovia, and the rate was substantially better than what Wachovia was offering to the general public at the time.
Make sure that you shop not only for the interest rate on the loan, but also based on other costs such as points and origination fees. Don't be shy to price shop these guys -- one bank's money is as green as another's.
We closed on a house in late may. Bankrate.com was our first stop. But the rate our broker got us was the best.
Got a 15 year fixed (we made a 70% downpayment), no points, no pre-payment penalty (we were very particular about this, since we will pay off our mortgage by summer of 2009) and no origination fee. We got 5.5% from Wachovia.
We closed on a house in late may. Bankrate.com was our first stop. But the rate our broker got us was the best.
Got a 15 year fixed (we made a 70% downpayment), no points, no pre-payment penalty (we were very particular about this, since we will pay off our mortgage by summer of 2009) and no origination fee. We got 5.5% from Wachovia.
Wow! Did you just walk in the bank and get this rate?
We went with ING Direct. They only do 5/1 or 7/1 ARMs. So, you need to be comfortable with an ARM, which I was. Saved hundreds per month.
We got 5.125% back in June. I see that ING is now at 5.5%. When I applied, the rate was 5.25%, but they offered me another .125% off if I committed to them that day, which I did since I had already done all me research.
Not everyone is comfortable with ARMs, so it may not be right for you.
My numbers (price, down, credit score, confirming loan) were very similar to the OP's Got a 6.5 with a float down option if the rates fall more that .25 to readjust from wells fargo. We still have ~6 weeks to close.
My numbers (price, down, credit score, confirming loan) were very similar to the OP's Got a 6.5 with a float down option if the rates fall more that .25 to readjust from wells fargo. We still have ~6 weeks to close.
Good luck !
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ING Direct
Got a 6.5 with a float down option if the rates fall more that .25 to readjust from wells fargo. We still have ~6 weeks to close.
