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Old 10-27-2020, 12:45 AM
 
12 posts, read 9,338 times
Reputation: 10

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My closing is this December and builder lender is offering me higher rate for my situation. Can someone suggest how to get the best rates or any tips that I can follow to get the best rates?

My credit situation
1. My and my wife are in the purchase agreement and both work for the state making 180k combined for past 6+ years.
2. We both have 820+ credit score and putting down 20% of purchase price of 605K (Folsom area).
3. Single family home, primary residence, 30 years fixed mortgage

My questions.
1. Is it better to lock rates before the election or after the election or will it have no impact at all?
2. Closing is estimated around Dec 2nd week so shall I lock the rates now or wait around end of November/early December in this housing market?
3. The builder lender offered me 3% APR-0 points and full closing cost credit and 4k design credit but other lenders in zillow shows 2.4-2.615% with 0 points and no fees and possibly closing costs. The builder was saying I might not get the rates that low from other lenders because my situation might not qualify but I feel my mortgage is the best case scenario for any lender as my financial situation, credit score, job guarantee, down payment and other factors are strong and risks are slim to none.
So, how do I select the best lender?

https://ibb.co/BymMxyz
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Old 10-27-2020, 10:21 AM
 
Location: Sacramento
540 posts, read 431,199 times
Reputation: 1014
3% with a 30-year fixed rate is pretty legit. You might be able to get it slightly lower - you can shop your mortgage to other lenders or work with a broker and check it out. But you aren't getting a raw deal through your builder lender.

I can't possibly see how rates could go any lower - it's already pretty much at inflation rate. But then I didn't think rates could get any lower before and they have! If you can get a sub 3% rate now on a 30-year fixed mortgage with no points and low upfront costs I would lock that baby in now.
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Old 10-27-2020, 02:00 PM
 
2,150 posts, read 1,716,517 times
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Here is data on historic inflation rates going back more than a hundred years. After tax borrowing costs right now are pretty close to the long term historic rates. So you are essentially borrowing this money for free. The Fed is still worked up about all of the people who lost jobs during covid and has made statements that its keeping rates down, so the government has no problem borrowing to finance stimulus programs, but also because a housing boom will make it easier for people to find jobs as restrictions from covid are lessoned.

As a result I think interest rates are going to stay low until their is a vaccine and people are going back to work. As long as interest rates are cheap, I think housing prices are going to keep going up. Whether we have another housing crash 5 years from now or just late 70's early 80's inflation to rebalance housing prices and incomes, I think both are possibilities too. But that is further out and if it is inflation, buying right now will seem very shrewd.
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Old 11-01-2020, 04:00 PM
 
12 posts, read 9,338 times
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Thank you all.
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Old 11-25-2020, 05:39 PM
 
148 posts, read 67,220 times
Reputation: 91
I am in same boat as my offer was accepted on a home this week, yay! One lender quote 2.99% for fixed rate 30 year loan but I am hearing about mortage programs as low as 2.5% from online and radio ads.

totally agree shelato- that is why I bought now. Time to move for holidays and before winter storms begin.

Last edited by sacguy71; 11-25-2020 at 05:40 PM.. Reason: update
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Old 11-25-2020, 07:43 PM
 
874 posts, read 320,274 times
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Quote:
Originally Posted by sacguy71 View Post
I am in same boat as my offer was accepted on a home this week, yay! One lender quote 2.99% for fixed rate 30 year loan but I am hearing about mortage programs as low as 2.5% from online and radio ads.

totally agree shelato- that is why I bought now. Time to move for holidays and before winter storms begin.
Check out the actual rate they will give you and if any special charges or costs associated with it. Most ADs are false which is why for years we have been told not to believe anything we hear and only 1/2 of what we read.
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Old 11-25-2020, 10:55 PM
 
148 posts, read 67,220 times
Reputation: 91
Thanks, yeah I have time to compare both lenders that I am speaking with right now for best loan package. Both are competitive but one charges less fees and may have better rate.
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