Whats the best way to optimize mortgage rate and fees?

[ender]

I'm learning there is a ton of variability in mortgage cost - both rate as well as fees.

What is the best way to optimize this? We are actively looking for a home but do not know if we will buy in say February vs March (we have flexibility on time but will definitely buy if we find the right place).

I've gotten a number of quotes as part of the preapproval process from banks but it seems so many are either unwilling or reluctant to give a full breakdown of costs. I know that a large number of the costs depend nearly exclusively on the area you are buying and related local fees.

Is the best way to get preapproved (we will have no problem with this, lol), make an offer somewhere, and then quickly request exact quotes with fees?

Do lenders have a lot of flexibility to match other offers? Say like the Wells Fargo or Quickens of the world? What sort of timeframe is ideal for this?

Last time we just went with our local bank which I think was great but I'm realizing how much flexibility banks seem to have. And it's several thousand of dollars at stake too, so feels worthwhile to focus on getting those savings.

[Chris @ Saturday Financial]

This is such a great question. Mortgage shopping is by far the highest dollar-saved-per-hour personal finance activity.

Yes, I think the best path forward is to get pre-approved, get an accepted offer so that you are "under contract," and then start mortgage shopping with as much free time as you can spare. If possible, try to get a 45-day contract period so that you have about a week built in for mortgage shopping.

I hope to do a full article-length write up in the future, but here are some basics:

Obviously, you want to compare apples to apples. So make as many choices at the beginning of the process as possible and then get quotes that are all for the same type of loan (Conventional, FHA, etc.) and the same down-payment percentage.

Reach out to a MINIMUM of three different banks/credit unions/independent mortgage brokers to get quotes.

What you'll find is that any bank can give you a range of rates, depending on how much you're willing to pay in fees. At any given bank, you might find options ranging from a 4.0% rate with $0 in fees to a 3.5% rate with $4,000 in fees. For a good baseline to begin your comparisons, go to aimloan.com. They'll give you a free quote without requiring any personal information.

As you narrow things down, what you'll ultimately end up doing is choosing the rate you want and then going with the bank that offers that rate combined with the lowest fees. Example: After the initial round of quotes you decide that a 3.75% rate is probably going to yield the best rate/fee trade-off for your situation. Bank A says that 3.875% is the best possible rate they can offer, so they're out. Bank B says they can offer 3.75% with $2,000 in fees. Bank C says they can offer 3.75% with $1,000 in fees, so they win your business.

A note on calculating fees:
Early in the process, banks have to provide you with an official Loan Estimate, which is a federally mandated form. Page 2 of the Loan Estimate is your best friend. Add the costs from Section A to the costs from Section B. Then subtract any Lender Credits included in Section I. That number is your "apples to apples" fee comparison.

All of the other fees in the Loan Estimate are either third party services that that you can shop for (like an inspection fee) or fixed costs that won't change between banks (like partial prepayment of property taxes).

More info on Loan Estimates: https://www.consumerfinance.gov/owning-a-home/loan-estimate/

I hope that helps get the ball rolling!

[dummy]

Good stuff

[norajean]

Currently the best rates and fees I have seen are with Redfin.  They have the lowest rates, zero fees/points, $1000 rebate and if they don't make closing in 25 days, another $1000.  They work evenings and weekends.  Rocket and my normal lender were both $5000-8000 higher on fees and higher on rates than Redfin.

[Laserjet3051]

This is such a great question. Mortgage shopping is by far the highest dollar-saved-per-hour personal finance activity.

Yes, I think the best path forward is to get pre-approved, get an accepted offer so that you are "under contract," and then start mortgage shopping with as much free time as you can spare. If possible, try to get a 45-day contract period so that you have about a week built in for mortgage shopping.

I hope to do a full article-length write up in the future, but here are some basics:

Obviously, you want to compare apples to apples. So make as many choices at the beginning of the process as possible and then get quotes that are all for the same type of loan (Conventional, FHA, etc.) and the same down-payment percentage.

Reach out to a MINIMUM of three different banks/credit unions/independent mortgage brokers to get quotes.

What you'll find is that any bank can give you a range of rates, depending on how much you're willing to pay in fees. At any given bank, you might find options ranging from a 4.0% rate with $0 in fees to a 3.5% rate with $4,000 in fees. For a good baseline to begin your comparisons, go to aimloan.com. They'll give you a free quote without requiring any personal information.

As you narrow things down, what you'll ultimately end up doing is choosing the rate you want and then going with the bank that offers that rate combined with the lowest fees. Example: After the initial round of quotes you decide that a 3.75% rate is probably going to yield the best rate/fee trade-off for your situation. Bank A says that 3.875% is the best possible rate they can offer, so they're out. Bank B says they can offer 3.75% with $2,000 in fees. Bank C says they can offer 3.75% with $1,000 in fees, so they win your business.

A note on calculating fees:
Early in the process, banks have to provide you with an official Loan Estimate, which is a federally mandated form. Page 2 of the Loan Estimate is your best friend. Add the costs from Section A to the costs from Section B. Then subtract any Lender Credits included in Section I. That number is your "apples to apples" fee comparison.

All of the other fees in the Loan Estimate are either third party services that that you can shop for (like an inspection fee) or fixed costs that won't change between banks (like partial prepayment of property taxes).

More info on Loan Estimates: https://www.consumerfinance.gov/owning-a-home/loan-estimate/

I hope that helps get the ball rolling!

Thank you for that link! I'm looking to buy this Spring and that breakdown was very informative.

[ender]

Currently the best rates and fees I have seen are with Redfin.  They have the lowest rates, zero fees/points, $1000 rebate and if they don't make closing in 25 days, another $1000.  They work evenings and weekends.  Rocket and my normal lender were both $5000-8000 higher on fees and higher on rates than Redfin.

Do you need to use their agents to get that deal?

[norajean]

Only their mortgage agents.

[clarkfan1979]

Many people pay high fees to get the lowest rate possible and end up re-financing within 7 years, which is not efficient. If you are going to re-fi within 10 years, pay lower fees and a higher rate (.25%).

If you know that you are the type of person to pay off the mortgage, then go after the lowest rate. I am the type of person that does a cash-out re-fi on my house every 10 years to buy additional real estate. As a result, I look for lower fees and slightly higher rates.

[ender]

Only their mortgage agents.

ty! I'll add them to my list of places to check when we have a home we are making an offer on!

Many people pay high fees to get the lowest rate possible and end up re-financing within 7 years, which is not efficient. If you are going to re-fi within 10 years, pay lower fees and a higher rate (.25%).

If you know that you are the type of person to pay off the mortgage, then go after the lowest rate. I am the type of person that does a cash-out re-fi on my house every 10 years to buy additional real estate. As a result, I look for lower fees and slightly higher rates.

This is backwards.

Lowest rate matters much less the shorter term your mortgage is.

Early in the process, banks have to provide you with an official Loan Estimate, which is a federally mandated form. Page 2 of the Loan Estimate is your best friend. Add the costs from Section A to the costs from Section B. Then subtract any Lender Credits included in Section I. That number is your "apples to apples" fee comparison.

All of the other fees in the Loan Estimate are either third party services that that you can shop for (like an inspection fee) or fixed costs that won't change between banks (like partial prepayment of property taxes).

More info on Loan Estimates: https://www.consumerfinance.gov/owning-a-home/loan-estimate

I think part of the problem I'm running into is that banks are hesitant to do this type of detailed breakdown in the preapproval process. Maybe I'll have more luck if I have a closing date/purchase price?

[Chris @ Saturday Financial]

Early in the process, banks have to provide you with an official Loan Estimate, which is a federally mandated form. Page 2 of the Loan Estimate is your best friend. Add the costs from Section A to the costs from Section B. Then subtract any Lender Credits included in Section I. That number is your "apples to apples" fee comparison.

All of the other fees in the Loan Estimate are either third party services that that you can shop for (like an inspection fee) or fixed costs that won't change between banks (like partial prepayment of property taxes).

More info on Loan Estimates: https://www.consumerfinance.gov/owning-a-home/loan-estimate

I think part of the problem I'm running into is that banks are hesitant to do this type of detailed breakdown in the preapproval process. Maybe I'll have more luck if I have a closing date/purchase price?

Yes, it'll be easier (and guaranteed) to get that type of detailed breakdown once you are under contract. It's possible that you could have some luck now if you tell a lender that you don't need a full Loan Estimate right now, but you'd like four pieces of information as soon as possible:
1) Rate
2) Total costs that will eventually appear in Section A of a Loan Estimate
3) Total costs that will eventually appear in Section B of a Loan Estimate
4) Total Lender Credits that will eventually appear in Section I of a Loan Estimate

I don't know whether they'll be able or willing to provide that during the pre-contract stage, but it can't hurt to ask. In any case, those are the four pieces of information you'll want to compare when the time comes.

[ender]

Yeah, what I have been trying to get now is effectively rate, section A, and I from that doc (at least one place has also waived the mortgage which I suppose counts as a lender credit?).

[Dicey]

Some random thoughts in addition to Chris's good advice.
1. APR is interest rate + fees, so a better comparison number than just interest rate.
2. Put 20% down and avoid an impound account. As a mustachian, you're much less likely to screw up the numbers and you know how to save, so you won't be flummoxed by the property tax bill. Plus, you will be positive it's paid on time.
3. No impounds means you pay for your own insurance. It's much easier to shop rates and change companies if you don't have to go through your lender to do it.
4. There is real value in finding a local lender who isn't going to sell your loan. It's less of a hassle if you don't have an impound account, but it still takes up bandwidth every time it happens. Avoiding it is a plus.
5. There is a lot of hate toward them on other threads, but we have had good luck with mortgage brokers. You just tell them you want a loan with no fees and see what they come up with. Costs you nothing to ask.
6. As much as you can, determine your preferred lender in advance. Getting a mortgage requires mountains of arcane paperwork. Providing it for multiple lenders is an exponential pain in the ass.
7. Before you shop, get preapproved by someone, which will require a small amount of paperwork. It doesn't mean you have to go with them,  but it does show a seller you are going to be able to get a mortgage. Pre approved is better than just prequalified. Do this in advance and submit it with your offer. I think they're usually good for 30-60 days.
8. Make sure "No Fees" means No Fees from Anyone, not just them. There are a lot of folks who say no fees but don't mean it. Oh, title insurance is separate? Recording fees aren't included? Fuck you.
9. Your Realtor is going to recommend someone. You'd like to think it's someone who has a track record of keeping your best interest at heart and works efficiently. Alas, sometimes they just recommend the lender who talks the best game, gives the best referral fee, or is a friend or relative. Same with Title Companies. Beware.
10. That Redfin program sounds very interesting. I'm going to look into it. You might want to start there, but I have no experience with them, so this is not an endorsement.

[Goldy]

Check out Aimloan.com.  Whenever I look (which is often since I have a 5/1) they have the lowest fees and best rates plus they offer a full breakdown without entering any personal information.

[ender]

Check out Aimloan.com.  Whenever I look (which is often since I have a 5/1) they have the lowest fees and best rates plus they offer a full breakdown without entering any personal information.

I've also heard suggestions for loandepot which seems similar.

fwiw, the estimate at aimloan is about $1k in fees higher than my current best offer going through regular banks though (with a higher rate, too).

[Goldy]

Check out Aimloan.com.  Whenever I look (which is often since I have a 5/1) they have the lowest fees and best rates plus they offer a full breakdown without entering any personal information.

I've also heard suggestions for loandepot which seems similar.

fwiw, the estimate at aimloan is about $1k in fees higher than my current best offer going through regular banks though (with a higher rate, too).

Oooh, please share!  I’ve been scouring the internet for a better rate but have never been able to beat aimloan.  I’ll check out the loan depot but also very curious which bank gave a comparable rate.

[ender]

Oooh, please share!  I’ve been scouring the internet for a better rate but have never been able to beat aimloan.  I’ll check out the loan depot but also very curious which bank gave a comparable rate.

For a 30 year fixed with best credit/escrow, they want about $4k in non-prepaid total fees.

I'm seeing around $1-2k from an independent mortgage broker as well as the broker I'm talking with at Wells Fargo (for same rates).

[Goldy]

Oooh, please share!  I’ve been scouring the internet for a better rate but have never been able to beat aimloan.  I’ll check out the loan depot but also very curious which bank gave a comparable rate.

For a 30 year fixed with best credit/escrow, they want about $4k in non-prepaid total fees.

I'm seeing around $1-2k from an independent mortgage broker as well as the broker I'm talking with at Wells Fargo (for same rates).

Ok, let’s make sure we are talking apples and apples on this as we are potentially getting to the core of the issue.

I checked out the websites for both aimloan and wellsfargo and put in identical refi information, here are my results.

Wells Fargo 30yr fixed
Rate: 3.875%
Closing costs: $4,500
APR: 3.949
Payment: $940

Aimloan 30 yr fixed
Rate: 3.375%
Closing costs: $2,731
APR: 3.429%
Payment: $884

[ender]

Ok, so just a note for these comparisons.

"Closing costs" is not really comparable. Because, for example, if you choose to escrow vs not escrow, your closing costs are different (a lot of people count this all together as one value, you may be doing this or not, I don't know). 

Additionally, all the costs that are zip code specific (so stuff like transfer taxes, title fees/insurance, tax stamp fees, etc) aren't really relevant in comparing since those will be the same for all mortgages in one zip code (or geographic region) but not the same between areas. So for example if either of us has a high fee area for these costs, their total closing costs will always be higher than someone who is in a cheaper area.

What you really want to consider is the variable costs that can actually change between mortgage providers. Which is frustrating, because "closing costs" doesn't really mean that normally.

For me, in looking at one of the mortgage broker cost breakdowns, there is no origination fee on my mortgage and in fact, they are providing a $691 credit in addition to paying for the appraisal (which is valued at $495). This is combined with giving me a good rate - I haven't redone this for about a month and rates have dropped since, it's possible that rate is lower now.

So basically, for me in my state closing costs are normally around $3.2k. These are all the charges that are required to buy in the zip codes I'm looking at, even if the bank has no origination charges (either origination or points).

These two credits ($691+$495) leads to this mortgage basically being a $1.2k credit from the lender as far as what they can control, which puts it to around $2k total closing costs - this is about $2k less than the $4k estimate from aimloan.

[norajean]

The closing costs should be mostly the same for major lenders. What varies is the rate and loan fees.  Redfin is 3.375% and fees of negative $1000 on a 30 year right now.  So the APR would be less than 3.375%.

[ender]

The closing costs should be mostly the same for major lenders. What varies is the rate and loan fees.  Redfin is 3.375% and fees of negative $1000 on a 30 year right now.  So the APR would be less than 3.375%.

Yeah they are definitely on my list of lenders when ever we make an offer.

That's pretty competitive to what the mortgage broker found (basically they are at $1k vs $1.2k credits), assuming they are actually offering that rate with no points/fees for closing - meaning the $1k is $1k off of all the local specific stuff.

[Goldy]

The closing costs should be mostly the same for major lenders. What varies is the rate and loan fees.  Redfin is 3.375% and fees of negative $1000 on a 30 year right now.  So the APR would be less than 3.375%.

I finally found that deal, unfortunately for me it does apply to refi's.  For those of you buying that's a solid deal. 

[Goldy]

Ok, so just a note for these comparisons.

"Closing costs" is not really comparable. Because, for example, if you choose to escrow vs not escrow, your closing costs are different (a lot of people count this all together as one value, you may be doing this or not, I don't know). 

Additionally, all the costs that are zip code specific (so stuff like transfer taxes, title fees/insurance, tax stamp fees, etc) aren't really relevant in comparing since those will be the same for all mortgages in one zip code (or geographic region) but not the same between areas. So for example if either of us has a high fee area for these costs, their total closing costs will always be higher than someone who is in a cheaper area.

What you really want to consider is the variable costs that can actually change between mortgage providers. Which is frustrating, because "closing costs" doesn't really mean that normally.

For me, in looking at one of the mortgage broker cost breakdowns, there is no origination fee on my mortgage and in fact, they are providing a $691 credit in addition to paying for the appraisal (which is valued at $495). This is combined with giving me a good rate - I haven't redone this for about a month and rates have dropped since, it's possible that rate is lower now.

So basically, for me in my state closing costs are normally around $3.2k. These are all the charges that are required to buy in the zip codes I'm looking at, even if the bank has no origination charges (either origination or points).

These two credits ($691+$495) leads to this mortgage basically being a $1.2k credit from the lender as far as what they can control, which puts it to around $2k total closing costs - this is about $2k less than the $4k estimate from aimloan.

Agree on a lot of this, which is why I did an example where I kept all of the details the same.  In my case WF can't come close.  Aimloan does disclose the complete fee breakdown so you can see how much the transfer tax/inspection etc costs.

I think one really important aspect of mortgage shopping that is often overlooked is trying to get the info from various banks on the same day so judgments are made with some level of control.  I check prices almost daily and am often surprised how much they can move in a short amount of time.

[ender]

Well, the timing now is about as best possible given market conditions for mortgages :-)

We had an offer accepted this morning, so I'll see how this process works.

Sent emails to the loan agent with:

• Chase
• Redfin Mortgage
• Wells Fargo
• Random mortgage broker guy who emailed me
• Quicken Loans (Rocket Mortgage)

Looking at Aimloan, they seem to have pretty solid rates right now around 3.25, but I've not received updated rates given last weeks volatility from any of the above list to know what they are currently.

[fishnfool]

I did a refi on my rental with Aimloan. I was very happy with their whole process and my loan is still with them after 3 years. You cannot beat the rates right now and their fee's are very good.

Good luck!

[nancy33]

We are refinancing right now with Bank of the West   They seem to have good rates and low fees
Purchase rate is 30 year 3.295apr 0.125% points

[ender]

hmm, current best offer after going back forth a few times today is 3.25%/30 year with around $200 or so in lender fees/origination (plus all the normal taxes/title/etc goodness).

Basically only one bank got back to me yestereday with a detailed breakdown today. Quicken/Rocket. A mortgage broker told me they'd get back to me today though.

3.25% seems silly good. Though dropping rate a 1/8 percent only changes our yearly interest about $250, which also feels weird. So much optimizing for not really that big of an impact. Going to 3% from 3.25 would only reduce mortgage by about $40 (which is entirely interest that we can itemize fully) so around $500 a year. It's not nothing but... I guess it makes me realize how relatively small the interest rate differences become vs the closing cost initial amounts.

Redfin's promo seems to go away today too ($1k off closing costs plus $0 lender fee in February) so I'll be curious what their March promo is, if anything. They also haven't adjusted their rates at all in the last few weeks - they had 3.375% for about a month now. Maybe they'll drop that even more stupidly low. They were consistently ~0.25% lower than all other banks for most of this calendar year.

I'll try to summarize everything later next week after the workweek starts and all the slow 9-5 banks get back to me... I bet I'll have a grand time this week. lol.

This process is making me realize how inconvenient "bankers hours" are for this process. I just chatted with a Quicken loan officer at 9pm on a Saturday night after receiving a detailed loan cost breakdown from them.

[katsiki]

hmm, current best offer after going back forth a few times today is 3.25%/30 year with around $200 or so in lender fees/origination (plus all the normal taxes/title/etc goodness).

Basically only one bank got back to me yestereday with a detailed breakdown today. Quicken/Rocket. A mortgage broker told me they'd get back to me today though.

3.25% seems silly good. Though dropping rate a 1/8 percent only changes our yearly interest about $250, which also feels weird. So much optimizing for not really

3.25% on a 30 year is incredible!  I have that % on a 15-year from years ago.  I may need to watch rates as I never thought my rate could be beat.

Thanks for detailing your progress, @ender !

[ender]

More play by play :-)

Redfin is currently a better deal than Quicken/Rocket right now.

Same rate (3.375%/30 year), net cost of -$1500 bonus to me for lender related costs. Redfin only has $1k credit with no cost, however they can waive an appraisal and a few other misc cost related fees Quicken must need, so it works out that both are offering lender fee/credit total of about $1.5k to me. Quicken charges like $3k and gives a $4.5k credit to get this, lol. Redfin charges $0 and gives a $1k credit / waives appraisal.

Redfin however is allowing me to not escrow without increasing the rate, while Quicken has a higher rate associated with that. In fact the total Redfin closing cost without escrow is actually lower than the credit we asked for with our offer (we made an offer $5k higher than asking with a $5k closing credit so we can finance the closing costs, lol, but after all the waived fees/etc their total cost would only be around $3.8k at close... I'm gonna guess we could work with the sellers to adjust our specifics in order to perfectly match that if need be).

Still haven't heard from Wells Fargo or Chase or a few others (surprised pikachu). I told the banks in my email template I was going to finalize things no later than end of day Wednesday... didn't realize I'd have such silly good closing cost/rate combinations ~24 hours later than my Saturday morning email. I kinda want to finalize this all today.

[ender]

Seeing 3.375% with a $1300 total lender credit as the best deal right now (from Quicken). It turns out Redfin was waiving the appraisal, which was where their $1.5k came from instead of the standard $1k, because it is not actually required by Fannie Mae. I'll get the same savings from Quicken too.

I didn't even realize you would be able to waive an appraisal that but apparently it's a thing.

I sent out emails this morning with the best current rate/fees to the ~6 or so lenders I've been working with. Guess I'll see what today brings. If any of them can meaningfully compete with each other I might be able to get them into a bidding war - even a couple hundred dollars more off closing is a pretty great return on a few hours of time today.

[ender]

Well, I managed to lock 3.25% with redfin earlier when their rate temporarily was that (it started at 3.375% today and went down briefly to 3.25% and is back up to 3.375%). So yay, 3.25% with ~$1100 lender credit is guaranteed.

I'm waiting and hoping Chase can match their rate/costs because it'd be one less bank to deal with given I already have accounts with them but I'm not sure how long I will wait for that. Their loan officer submitted that request earlier today and I haven't heard still...

[ender]

@dragoncar you were asking questions about this topic in a different thread.

Might be interesting to read.

[Chris @ Saturday Financial]

I'm really enjoying hearing the live updates - keep them coming as they're relevant. I get so excited thinking about how much money you are saving through this process, and about how much money others can save following a similar pattern!

[ender]

Chase wasn't able to match, so Redfin Mortgage it is.

I don't even know or care if the Quicken loans guy can match at this point. He was way too salespersony for my liking. Felt like I was in a high pressure sales pitch.

I'm not particularly going to complain about a rate of 3.25% with about a -$1100 lender credit between their $1k offer and the fees they don't charge.

Apparently our mortgage doesn't require an appraisal either (cool, I guess? surely not requiring appraisals can't end poorly) which will save us another $500-600 or so on closing costs too. Section B of the fee sheet is $0 with Redfin, lol (same with Section A). Nice.

We'll probably end up wanting to escrow just to take full advantage of the credit that the sellers/Redfin are giving us, lol. We'd only be looking at about $3800 in closing costs with no escrow and need $6k! I guess we could instead buy points or something? Who knows. We had offered $5k more than asking with a $5k closing cost credit and between that and the redfin credit, it seems a bit crazy to me.

Interestingly Redfin is back to offering 3.25% for 30 year fixed rate mortgages but no longer have the $1k credit. Guess we hit the best combo so far.

[katsiki]

Awesome rate and thanks again for the play by play.

Do you know if Redfin does refinance mortgages?  I could not find much on their site except a mortgage page that was powered by Zillow.  Wondering if I am in the wrong part of their site...

[ender]

I'm not sure.

There is actually a mortgage company called redfin mortgage - https://www.redfinmortgage.com/mortgage - this is affiliated with Redfin but not as obvious on their main site.

They've been super responsive and helpful so maybe try emailing their info email?

[RedmondStash]

Good info, thanks. Posting to follow.

[afox]

Choosing a lender because you think they might not sell your loan is a bad idea. Unless you have it in writing that they dont sell their loans (and ive never heard of this and doubt it exists, of course they want and need the option to sell your loan if they need to). The mortgage broker probably doesn't know anything about whether/if their bank keeps the loans, its not their job/concern. In all likelihood once you sign the paperwork you'll never talk to that person again.

[katsiki]

I'm not sure.

There is actually a mortgage company called redfin mortgage - https://www.redfinmortgage.com/mortgage - this is affiliated with Redfin but not as obvious on their main site.

They've been super responsive and helpful so maybe try emailing their info email?

Thanks ender.  Not available in my state from the bottom of their site.

I think I will hold unless rates drop significantly further.  Our rate is great and remaining term is minimal.  It will take a lot to be worth it.

[ender]

Choosing a lender because you think they might not sell your loan is a bad idea. Unless you have it in writing that they dont sell their loans (and ive never heard of this and doubt it exists, of course they want and need the option to sell your loan if they need to). The mortgage broker probably doesn't know anything about whether/if their bank keeps the loans, its not their job/concern. In all likelihood once you sign the paperwork you'll never talk to that person again.

Well, this isn't always the case. Some of the bigger banks like Quicken or Chase often service them.

But where it really matters is small banks/credit unions. We were new to the area so I didn't go down that route. But you can definitely have a higher chance of success with this type of approach.

Either way, Redfin Mortgage only originates them so there's nearly a guarantee it'll get sold. Maybe to Chase (which would be hilarious).

[Chris @ Saturday Financial]

It's so great to hear you locked in such a great rate and lender credit! That was relatively little effort for thousands and thousands of dollars of potential savings over the life of the loan. Well done!!

[ender]

Something I found out way too late this time - I could have put 10% down for a 0.125% rate drop and only had 0.21% PMI. So effectively the rate is very nominally higher but the advantage of having 1/2 our downpayment still.

This seems like it would have been a no brainer. Had we done an appraisal, I would have been able to switch but I only realized this late in the process and with the refinance glut it wasn't going to be fast enough to get an appraisal done and still close.

Our mortgage officer made it sound like this was actually common too, so make sure you check your rate at different % down. Our PMI would have been super low, so that makes this offer much more compelling (effective rate basically was 0.085% higher, so getting 0.5% in a savings comes out ahead).