Author Topic: Mortgage Rate Rollcall?  (Read 2504 times)

giggles

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Mortgage Rate Rollcall?
« on: November 30, 2012, 01:19:07 PM »
We are hoping to purchase our first house with a traditional 30 year fixed loan.

I am a bit disappointed with the 3.5% rate we were offered.  Need to double check on the APR, which is sure to be higher.  I was really hoping for 3.4% or ideally 3.25%.  I want to keep shopping around.  I would love to hear what rates you all are getting and from which bank!

freelancerNfulltimer

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Re: Mortgage Rate Rollcall?
« Reply #1 on: November 30, 2012, 01:30:55 PM »
3.5% sounds great. You can't get much lower than that unless you're doing a 15 or 20 year.

I'm almost done refinancing and I have my rate locked in a 3.75%

salmp01

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Re: Mortgage Rate Rollcall?
« Reply #2 on: November 30, 2012, 01:40:39 PM »
I just refinanced with a no cost loan for 3.5% and I thought that was good for a 30 year loan.

jrhampt

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Re: Mortgage Rate Rollcall?
« Reply #3 on: November 30, 2012, 01:43:42 PM »
I'm at 2.875, but that's for a 15 year.  I think 3.5 sounds pretty good for a 30 year, but it never hurts to shop around.

Another Reader

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Re: Mortgage Rate Rollcall?
« Reply #4 on: November 30, 2012, 02:04:50 PM »
A mortgage rate needs context to determine if it is high or reasonable.  Rates depend on the lender, your credit score, your loan to value ratio, the type of loan, the points and fees, among other criteria.  On the surface, that rate seems high right now.  Is your credit score less than 720?  Is the lender absorbing points and fees?  Is this an FHA or VA loan?  Is lhe loan to value ratio greater than 80 percent?  All these factors will affect the rate and APR you are offered.

giggles

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Re: Mortgage Rate Rollcall?
« Reply #5 on: November 30, 2012, 02:17:44 PM »
haha, ok, maybe I am overly sensitive.  We would have just over 30% down, my credit score is 780 and DH's is 720.  No FHA, no points. 

Michento

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Re: Mortgage Rate Rollcall?
« Reply #6 on: November 30, 2012, 02:26:14 PM »
We just closed on 3.75% 30 year. 3.5 sounds great!

Another Reader

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Re: Mortgage Rate Rollcall?
« Reply #7 on: November 30, 2012, 02:27:00 PM »
If you are paying closing costs but no points, putting 30 percent down and have those credit scores, I would shop around.  You won't be able to lock until you find the property anyway.

TheDude

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Re: Mortgage Rate Rollcall?
« Reply #8 on: November 30, 2012, 02:51:54 PM »
We just closed on a 15 year at 3.0 they paid us 900 to do and we didnt have to escrow.

giggles

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Re: Mortgage Rate Rollcall?
« Reply #9 on: November 30, 2012, 04:59:41 PM »
Yes, we were planning to pay our own closing costs.  If we can't get them to lower the rate, could we ask them to pay part of the costs?  We are going for a 2nd look at a property tomorrow, and hoping to put in an offer this weekend.

Another Reader

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Re: Mortgage Rate Rollcall?
« Reply #10 on: November 30, 2012, 05:31:32 PM »
You can try to negotiate, but that works better when you have a competing offer.  Rates change every day, often more than once a day.  If you find a really good loan broker, they will watch the rate and call you to lock when the market moves down. 

Your rate sounds high, even with no points.  You can use that preapproval to make the offer while you are shopping other lenders.  When you shop, make sure you are comparing apples to apples.  You got a quote with no points and you paying standard title fees.  Get the same from everyone.  Mortgage rates and fees are like an amoeba.  Squeeze one part of the deal, and the costs and profit ooze into another part.  One lender will quote a low rate with points and high fees.  Another will try to sell you a "no cost" mortgage with a higher rate.  They are getting a yield spread premium (kickback) from the actual lender and using some of that money to pay your closing costs.  Tell all the lenders you are shopping rates AND fees.

For example, Salmp01 (see above) just did a no cost refi ar 3.5 percent for 30 years.  I am near to closing a 3.125 percent refinance with one point and closing costs.  To the lender, these are nearly equal deals, and we probably locked around the same time.  His/her payback period is zero.  It will take a long time for me to recoup my costs vs that deal, but I intend to hold the property for longer than 10 years and never refinance again.

sherr

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Re: Mortgage Rate Rollcall?
« Reply #11 on: December 03, 2012, 07:51:44 AM »
You might consider alternatives to a traditional 30-year fixed-rate mortgage.

I have excellent credit, but my wife and I just closed on a house with a 10 / 1 ARM mortgage at 2.5%. For those who may not know that means it's a 30 year Adjustable Rate Mortgage where my interest rate for the first 10 years is 2.5%. After that my interest rate adjust every 1 years according to a fixed formula (in my case, I think it's LIBOR + 1%). So our interest rates in the last 20 years of the mortgage are almost certainly going to be higher than the 3.5% that we could get with a fixed rate mortgage now, depending on what LIBOR is in 10-30 years.

Why would we do such a thing?

First, the fact that it's a 30 year mortgage means that our required minimum payments are going to be extremely low. We could probably have gotten a similar rate with a 10 or 15 year fixed-rate mortgage, but then our required minimum payments would have been higher. This way we have the flexibility to spend that extra several hundred dollars per month on something else if something comes up.

Second, there is a good chance that we will be able to pay off the mortgage entirely after 10 years, which would mean we would never have to pay more than the 2.5%, so what does it matter that it was an ARM? I know that we can almost certainly find ways to invest my money that would have a better rate of return than 2.5% over 10 years, however I am also fairly conservative and the value of having no debt whatsoever is to me significantly larger than a little bit more interest. Furthermore we plan on mitigating the loss of our potential gains by investing some (most?) of the money that is eventually destined for the house, and then just cash it out right before we hit that 10 year mark, mail in a very big check, and call it a very good day.

Third, even if we are not able to pay off the mortgage after 10 years we should still be able to pay it down significantly. Since our principle will be significantly smaller in 10 years then even if our interest rate is significantly higher than it would have been on a 30-year fixed mortgage, it would take a difficult-to-estimate-precisely but Fairly Long Time before the average interest rate would catch up to the fixed rate. So if we paid it off any time between 10 years and that Fairly Long Time the ARM mortgage was still a better decision over the fixed-rate mortgage. If we take longer than that FLT but not much longer, then the fixed-rate mortgage would have been mathematically the better choice, but the ARM would still have been a Pretty Good choice given it's potential (but unrealized) upsides. It's only if you take a large fraction of the term to pay it off that it's almost certainly better to go with the fixed-rate mortgage (I'm guessing, but I'd say 20-30 years?).

Hopefully that should give you another option to consider. If you plan on taking all 30 years to pay it off then yes, I'd say lock in that low rate while you can. However if you plan on paying it off early, then you can take advantage of the system that assumes you'll take all 30 years to get a significantly better deal with very little risk.

James

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Re: Mortgage Rate Rollcall?
« Reply #12 on: December 03, 2012, 08:17:07 AM »
It's certainly within normal range for today and your situation, so don't feel like you are being screwed with that rate.  It's certainly possible you could do better with research and more effort though, just takes contacting banks and mortgage agents to get offers and weed through them until you find the best.
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HawkeyeNFO

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Re: Mortgage Rate Rollcall?
« Reply #13 on: December 03, 2012, 09:32:08 AM »
Closed last month on a 30 yr VA loan.  first payment will be due January 1st

3.25%, no points, lender credit was over $3000 more than the closing costs.

chatsc

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Re: Mortgage Rate Rollcall?
« Reply #14 on: February 25, 2013, 07:27:25 AM »
when we bought our cottage in aug, we got 2.94 for a 25yr with ING (in ontario)

sibamor

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Re: Mortgage Rate Rollcall?
« Reply #15 on: February 25, 2013, 08:15:51 AM »
Right now anything SUB 4.0% is a standard deal. Anything SUB 3.75% is a good deal. Anything SUB 3.5% is a great deal.

It seems we hit the bottom interest rates and they are slowly crawling back up. Take a peak at the link for some data.

http://www.mortgagenewsdaily.com/mortgage_rates/

Tami1982

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Re: Mortgage Rate Rollcall?
« Reply #16 on: February 28, 2013, 12:02:00 PM »
Closed 8/2012.  I paid closing costs.  Zero down OOP, used DPA program.  30 year locked @ 3.25%.  Used points to buy down from 3.75%.  (My house was inexpensive.  Cost was like $160)
« Last Edit: February 28, 2013, 01:41:16 PM by Tami1982 »

MrsStubble

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Re: Mortgage Rate Rollcall?
« Reply #17 on: April 05, 2013, 04:35:54 PM »
2.99 on a 15yr.  We got offered lower... down to 2.68 with points, but the different in the closing costs vs saved over life of loan wasn't worth it.  3.125 was the highest offer. 
for 180k on the east coast

firefergy

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Re: Mortgage Rate Rollcall?
« Reply #18 on: April 06, 2013, 01:44:48 PM »
30 year fixed with no points 3.375.

Cecil

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Re: Mortgage Rate Rollcall?
« Reply #19 on: April 06, 2013, 01:51:07 PM »
I've got a variable rate mortgage that is set to Prime - 0.8%, adjusting monthly with changes to the prime rate.

Bank of Canada prime has been 3% for the last few years so I've been paying 2.2%.

mc6

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Re: Mortgage Rate Rollcall?
« Reply #20 on: April 06, 2013, 02:48:22 PM »
20 year loan at 3.875, but I aim to have it paid off in 2027 when I retire.  Or earlier. 

My original mortgage from 2007 was a 30 year/ 6.5 IO for the first ten years.  It seems doubtful to me that I will refi a third time because I don't imagine rates can go much lower, but we shall see. 

James

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Re: Mortgage Rate Rollcall?
« Reply #21 on: April 06, 2013, 08:52:46 PM »
30 year fixed with no points 3.375.


Same here, just locked on 30 year at 3.375% with no points.


I have no intention of paying it off early, but I probably won't be here longer than 10 years (at the most) anyway.
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Nate R

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Re: Mortgage Rate Rollcall?
« Reply #22 on: April 06, 2013, 08:55:01 PM »
3.875, but on a Owner-Occ duplex. Just closed the other day, but that was a 60 day lock. Would've been 1/8 lower or so if it was a SFH, I'm told.


Rural

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Re: Mortgage Rate Rollcall?
« Reply #23 on: April 07, 2013, 05:43:33 AM »
7.5% here because we have a land/farm loan, not a traditional mortgage. Needless to say, we're paying the thing off; will be done the first of September.

Editing to add that will be four years and two months into the loan; we stopped payments for nearly a year while we built the house.
« Last Edit: April 07, 2013, 05:46:02 AM by Rural »

MooreBonds

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Re: Mortgage Rate Rollcall?
« Reply #24 on: April 07, 2013, 06:32:39 AM »
As others have mentioned, the key thing is the loads and loads of fees that they hit you up with. The "Good Faith Estimate" is only an estimate, and it may not include various fees that they put different, official-sounding names next to (i.e. they're not government mandated or required fees, like "documentation", etc.)

Credit unions, by their nature, will work to serve YOU first, not the shareholders, because as a customer of the credit union, YOU are the shareholder. As such, they will not be as inclined to hit you up with loads of fees to maximize their profits.

I have a 5 year Home Equity Loan with PenFed credit union, but their current 30 year fixed is about 3.25% or 3.375% with no points, and I would be willing to bet that once everything is said and done, their total fees they hit you up with will be less than the average broker or bank out there.

As an example,when I did my 5 year HE Loan, they advertised zero costs - and they meant it! Absolutely no costs to take out my loan (if your equity value is less than 70% in most areas, they are willing to do a comparison by using your appraised real estate tax records, but if your Loan to Value is more than 70%, they will get an appraisal for about $300 that they add to your loan).

The one caveat with PenFed is that they do add on a 1% fee to all fixed-rate mortgage products (which they state at the bottom of the website). If you go with an adjustable rate mortgage (like a 5/5, where it's a fixed rate for the first 5 years, then adjusts a maximum of 2% every 5 years thereafter), then there is no 1% fee.

If you don't have a service record to qualify for PenFed membership, you just pay a one-time $20 fee to the National Military Family Association, and you quality to join. PenFed also has great car loans (0.5% and 1.5%).