Hi all, Just got approved...committment letter and all for a 30yr Fixed Rate Mortgage. We went thur a mortgage broker and I think we are getting raked over the coals on the rate. We are putting 20% down and was only able to get a 7.125% rate. I thought we could at least get something in the 6.7 to 6.8 range. Has anyone recently received an approval for a mortgage and how much are you putting down and the rate you received. I know the rates may vary by the part of the country you live in, but I wanted to see how closed we are or if we should shop elsewhere. Thanks
What are your scores?? That rate seems a little high considering mortgage rates just dropped recently, I have seen them as low as 6.25 conventional. Also usually what points you are willing to pay may drop the rate, I don't "think" down payment effects the rate. We went FHA, but our down payment had nothing to do with the rate, we got the same rate regardless of what we put down.
Momof3, Yeah, I thought that rate was a high. Our scores are mid to high 600. What rate did you receive?
We got our loan last year when the rates were higher 7.00% based on a middle score of 636. You may want to check out other lenders, the mortgage rates now are as low as they have ever been just about. Your rate with those scores seems high?? Go check out www.bankrate.com, they have rates showing as low as 6.10 etc.
$wealth$ Congratulations on getting the mortgage. Yes, 7.125% does sound a bit high. However, it may be that the lender is basing your rate on a "lock" that was gotten before the lastest drop in rates. If this is the case, then for the mortgage broker to switch horses in midstream from one lender to another may not be overly advisable as that would mean essentially starting the process over again. Another thing, it also depends on which state you are in. Diferent regions of the country have diferent rates. I have seen as much as a 1/2% diference in rates with the same lender in diferent States. Hope this helps. fla-tan
I'm in NJ. I would have thought that putting 20% down with decent scores, would net a decent rate. Our mortgage broker did say one of the reasons our rate is high is because of the amount we are borrowing. Does this sound correct? Anyone out there in NJ with a rate under 7%. Yeah..who was your lender. Getting a rate a under 7% could mean a savings of about $ 200 to $ 300 a month in our case.
Yes, rates are higher on higher loan limits... Currently, any loan over $300,700 is considered to be a jumbo-loan. They are usually 0.25% to 0.33% higher than non-jumbo loans.
My scores ranged from 650-692 and I just closed. Stuck with 7.75% because the house we bought needed some work. Couldn't get anyone to do a conventional mortgage on it. On the upside, the cost to fix everything is included in the mortgage, and we saved 28K on the house. Gib
Forgot to add, this was a repo. If I was smarter at the time, I would have made my offer contingent on the bank selling it carrying the financing.Live and learn. Gib
Try COuntrywide..we are in NJ too, and got 6.8 with similar scores, 5% down. I think they bent over backwards for us, would use them again in a heartbeat...
We just met with a brooker last week. We were able to get a 7.00 30yr fixed. It was a FHA loan. We're not going to do that however. Waiting till our scores increase then start shopping again.
I've seen these this friday: Jumbo loan: $425,000 30 year 6.667% 6.25% conforming (under $300,700) 30 year, with high 700 scores. Total loan package $450,000: $300,000 30 year 6.25%, $127,500 2nd at 6.5%, 5% down ($22,500) .5% origination (yes, not 1%). Make sure to negotiate that origination fee since it is only commission to the mortgage broker and every bit helps. Also, some banks do a .25% discount on even those low rates if you let them automatically deduct the payments from your account (I suggest setting up an account for only this purpose as it doesn't give them access to your whole main account). Just transfer money as you need to each month Also, important considerations of course are: 1. No prepayment penalties 2. Ability to do semi-monthly payments (same total monthly amount, just broker up on 1st and 15th). This can save quite a bit on your loan for doing nothing other than paying 1/2 then 1/2 of the payment during the month. 3. Bi-monthly payments (adds 1 extra payment to the year) and /or a combination thereof. Some banks will let you pay semi-monthly but they charge several hundred dollars to set your account up to do that... bogus... so ask ahead of time.
RE: payments on the 1st and 15th...be careful...DON'T pay like $300-$400 extra for the PRIVELAGE...and you have to find out if they actually get posted to the loan on the 1st and the 15th...OR ARE THEY JUST "HELD" TILL BOTH PAYMENTS ARE RECEIVED... You can ALWAYS make "EXTRA" principle payments anytime you want...$100.00 or $1,000...and you can QUIT doing it anytime...RESUME ANYTIME...
I REALLY hope the rates stay low until we close. We locked in at 7%(we were offered 6.75% with a 3 month lock but we needed a 4 month lock) the second week of June. They are giving us one chance to float down if the rate goes down one month prior to closing. The lender said they must be assured that the builder will finish our house within one month prior to allowing us to float down. 7% is not bad but I would prefer something in the 6's.
We just locked in at 6.875% 30yr fixed- 100% financing. We went VA, scores are low 600's, around 620's, We also have a 2yr old BK-7. We are having it built, and we close at the end of the month. BTW- We are in Florida. Jamee
