2%!!! How to consider multiple lenders???

[Fru-Gal]

Guys, I am seeing 2% now for 10 and 15 year on Aim Loan.

I really want to refi, been paying hubby's credit cards down. Our credit scores in 720-740 range (don't know why they aren't higher, it's frustrating -- no obvious reason for that). Question: If I want to compare loans from multiple lenders, does each one need to pull my credit? If so, won't that hurt my score?

Also, what other lenders should I look at?

Finally, will rates drop below 2%?

[secondcor521]

I'm not familiar with Aim Loan.  Those may be teaser rates or the providers may be incompetent.  Or they may be real and valid.

Lenders may very well want to pull your credit if you apply for a loan.  They may be willing to give you general comments based on your credit score.  They are required to get your permission in order to do a hard pull.  Each hard pull can subtract anywhere between a few and a dozen points, depending on your overall credit history.  It seems that the longer and stronger your history, the less a hard pull affects your score.

Usually loans are priced in bands, so if you're between 700 and 749 you'll get the same rate, 750 and above might get you a better rate, 650 to 699 a worse rate, etc.  Lenders may have different break points.

It's been a while since I've needed a loan, but I think bankrate.com used to be good and reputable.

Nobody knows what rates will do in the future, especially in the short term.

[Fru-Gal]

I know they may be teasers but I've been watching them for over a year and it's been a steady drop. Friend just refi'd 30 years at 2.49. I was aiming for 2.5 or less but 2 is exciting!

Currently have 11 years left on 3.375.

I don't think I'd go back to 30 years but I could see doing 15 because it's all about cash flow.

[slappy]

I just checked aim loan and didn't see 2%. Are they paying points?

I had my mortgage with aim loan previously and they were fine.

[Fru-Gal]

Yes, that's with points.

Considering that the points is equal to 1 of my current payments, seems worth it.

[Fru-Gal]

The 2% is on 10 and 15 year loans only. APR on the 15 year at 2% with points is 2.235, on the 10 years at 2% is 2.315.

[slappy]

I don't think my loan balance is high enough to qualify for the lower rates.

Make sure you shop around for title company. The closing costs listed seem high.

[slappy]

Thx. Yes, I live in HCOL world. Do you know, do they include ALL the closing costs (title insurance) in the API?

Anyway my fave loan broker tells me not to trust these promo rates. Still I like where the trend is going.

I don't think it's a promo rate. I think it's just a low rate with points. I had my first mortgage with them about 8 years ago and never had any issues with them. The rates are low because they are online only, and maybe also because the closing costs are a bit higher.

As far as I know, they include in all the costs. For my recent refi, I was able to shop and find a cheaper title company and I was also able to get the appraisal fee waived based on my LTV. So I was able to save several hundred dollars on closing costs that way.

[Fru-Gal]

Ooh, what  was your LTV? Mine is about 28%.

[slappy]

Ooh, what  was your LTV? Mine is about 28%.

Mine was about 35%. It doesn't hurt to ask if they can waive the appraisal.

[secondcor521]

Thx. Yes, I live in HCOL world. Do you know, do they include ALL the closing costs (title insurance) in the API?

Anyway my fave loan broker tells me not to trust these promo rates. Still I like where the trend is going.

I'm assuming you mean APY.

Federal law determines how APY is calculated and what lenders must include and what they may leave out.  I believe it is defined by the lines on the HUD-1 statement.  Not everything is included, and I think title insurance and of course any prepaids are not included.  If you google how APY is calculated you might find the list of what's included and what isn't.

Of course lenders have an incentive to make APYs lower, since it's common to comparison shop on that statistic.  Some may even go so far as to shift fees from those that must be included in APY to those which may be excluded.

[Cranky]

I don’t know that you’ll get that rate with that credit score, but apply and find out .

[Fru-Gal]

Update: I am now seeing 1.875 on Aim Loan with 1.625 points, or 2% with just under a point!!! I’m running the math and it’s showing that I would break even in three years. Our credit scores are actually looking quite good right now so I have begun the process of applying to aim loan and also my current lender, whose rates are not nearly as good — the best they seem to be able to offer me is 2.375 and they said the APR would be 2.45% and they were vague about closing costs.

I’m currently at 3.375% with 11 years left.

[Fru-Gal]

I have looked for other lenders but really not seeing anything as competitive. But definitely interested if anybody has other lenders to recommend. Also I’m running the scenario comparing 2% versus 1.875% and the breakeven difference is only three months. I just really like that low payment for post 🔥cash flow.

[wingardk]

I've used Aim for an initial Mortgage and a refinance and plan to use them for an upcoming new primary. They have been straightforward to deal with and don't hide anything.

[Fru-Gal]

Thanks for the vote of confidence! I applied to a few lenders last night but I’m leaning towards this. However there is a lot of cash involved LOL. Not sure if I want to add that to the balance of the loan. Anyway continuing to do the math…