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I just went to Coastal. For 30 year/20% down, the fixed rate is 4.75% with no points. I asked about first time homeowner program. He said the first time homeowner program is fixed rate at 30 year at 5.25% and you can borrow up to 100% (up to no money down) and he "thinks" they waive the PMI. So I asked him how about 30 year/10% down, is there a better rate than 5.25%? And that's when he wasn't sure and directed me to the mortgage department.
Wells Fargo is 5.25% no points. Suntrust is 5.0% no points.
But what about fees? Doesn't do any good to get this info but not ask about fees. What if there is a 1% origination fee? That's huge.
The rates quoted on the websites are usually a day or two old.
The rates quoted on the websites do not take into account your credit score (which drives the rate you get).
The rates quoted on the websites do not tell you the fees that lenders charge. Some are junk fees and some are the normal fees.
Start with the website but you'll really need more than that to get an accurate rate.
Vicki
Vicki,
When you say junk fees, exactly what type of fees are you referring for example? How would I identify these "so called" junk fees, and can I tell that particular lender that I will not pay such fees and still get the loan?
It's so true you have to look at all the various things you'll be charged for and yes, they do add up! Things like fees to Fed-Ex you documents, title search...they nickle & dime you on many things. Always get it in writing GFE (good faith estimate) where you can see the various things you'll be charged that manage to drive your closing costs up.
If you are trying to avoid PMI I would advise you to do the numbers before you do a 2nd mortgage in lieu of PMI.
In my situation a 2nd mortgage looked good because it saved me about 50-75 a month but over the course of the loans I would of paid approx 100% more to the 2nd mortgage company than in PMI.
Of course you can get that 2nd mortgage rate lower if you go adjustable but I wasn't will to take on that addition risk. The fixed rate for a 2nd was about 8-9% and the adjustable was 5-6%
When you say junk fees, exactly what type of fees are you referring for example? How would I identify these "so called" junk fees, and can I tell that particular lender that I will not pay such fees and still get the loan?
When I say "junk fees", I refer to some lenders that charge extra fees that are not customary in this area. For example...you may have an application fee that is $350. This is customary. However, if you have an application fee that is $350 and a processing fee that is $400 and a committment fee that is $200, I'd say a couple of those are junk fees!
Fees are negotiable with most lenders IF you have excellent credit and you have a job and some money to put down. In that case, you are the buyer/borrower that lenders want. However, if you are buying a $75,000 condo and become demanding versus a guy buying a $500,000 house, the lender may decide that he doesn't even want your business.
We also went with wells fargo. My exerience led me to believe that pretty much any major lender would be competitive (with the likely exception of bank of america, again with my exp). We tried WF, Wachovia, and Suntrust. Bank interest rates are/were fluctuating drastically. We ended up getting a bad rate just due to timing (5.625). My advice is not be in a rush to close, ie i have to have a house by X date, then when that date comes and the rates are bad you have no choice. (Then again its not like if you wait a month rates will be better). Rates are a crap shot and your mortgage lender has absolutely no reason to try to get you a lower rate once you are already committed to using that lender. You may get lucky, you may not. You can pay them more money for the insurance that if the rate changes during the few weeks between offer and closing you'll get the lower rate.
We also went with wells fargo. My exerience led me to believe that pretty much any major lender would be competitive (with the likely exception of bank of america, again with my exp). We tried WF, Wachovia, and Suntrust. Bank interest rates are/were fluctuating drastically. We ended up getting a bad rate just due to timing (5.625). My advice is not be in a rush to close, ie i have to have a house by X date, then when that date comes and the rates are bad you have no choice. (Then again its not like if you wait a month rates will be better). Rates are a crap shot and your mortgage lender has absolutely no reason to try to get you a lower rate once you are already committed to using that lender. You may get lucky, you may not. You can pay them more money for the insurance that if the rate changes during the few weeks between offer and closing you'll get the lower rate.
Most reputable lenders will give you one "float down". That means that there is a window of opportunity, that if rates go down at least l/8% or l/4%, they will allow you to have the lower rate.
I got mine at 5.25% today for 30yrs fixed conventional with 0% origination/discount points.
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Junk Fees
