Mortgage advice

[ronjon]

This is a great forum - I've been lurking for awhile and was wondering if I could get a few opinions from people more real estate/financially savvy than myself.

I'm finishing my intern year and have decided, for mostly personal/family reasons, to purchase a home using one of the physician loan programs (I'll be in residency for 5 years still).

Today I talked with a well-known, nationwide bank and was given a quote of 6.0% (~6.1% APR) with 0.1 points for a 30 yr fixed-rate mortgage (100% financing, no PMI) for a ~175k home and roughly $2500 in closing costs. This seems pretty competitive to me based on some other comparisons I've done.

If anyone else out there has been comparing rates recently and could comment I'd be grateful. Thanks

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[Bun]

With the Fed dropping rates again today by .5% for a total of 1.25% in the last 10 days you should be able to get a more competitive rate than 6%.

might want to check realestate.yahoo.com. They have current rates for most areas of the country.

hope this helps

 

[ronjon]

With the Fed dropping rates again today by .5% for a total of 1.25% in the last 10 days you should be able to get a more competitive rate than 6%.

might want to check realestate.yahoo.com. They have current rates for most areas of the country.

hope this helps

Thanks for the reply. I guess I'm considering the fact that this loan is 100% financing with no PMI (and they're willing to overlook my student debt, which very few other lenders would be willing to do) - is it likely to find something much under 6% with all of these concessions? (I realize the conventional 30 yr FRMs are quite a bit better, as you mention).

 

[bkpa2med]

Everything you stated is something that many do for a "doctor loan."

 

[ronjon]

Everything you stated is something that many do for a "doctor loan."

Right...I stated that. I am interested to know if anyone has been out loan shopping as well and could comment on rates for said "doctor loan".

 

[randomedstudent]

Ronjon,

That sounds comparable to rates I've been given. Actually it's right b/w the rate I was given for a 5/1 ARM (5.7%) and a 30 year fixed (6.4-6.7%). We actually really want a 30 year fixed, so I'm curious what bank quoted you 6% for 100%, no PMI on a 30 year fixed. I would loooooooove to use them.

(I have a sinking feeling it might be BofA which we can't use b/c we live in one of the like 5 states that isn't eligible for their program.)

 

[Sol Rosenberg]

That's not a horrible rate for a loan under those terms. My credit union is offering 5.75% (5.83% APR) for their "uber-prime" 30 year fixed mortgage (20% down, excellent credit, etc.) They are usually a little high of the national average. It's hard to research this because brokers don't seem to be publishing their rates on the internet (bankrate only turned up like 3 hits to my query -- back when I was actively shopping for a loan, it would turn up dozens.)

So, even though the Fed. rate is (much) lower, I think mortgage rates will fall sluggishly because of the [relatively] high rate of default going on now.

 

[ronjon]

Thanks all for your help...anyone else out there with recent quotes?

randomedstudent - it is BofA

 

[mshheaddoc]

Be warned with BOA, your loan rep will disappear once you apply for the loan and get the commitment. I know 2-4 horror stories with either closing late or not closing at all because they couldn't get exceptions for what they promised you (not including your student debt - they might require a letter from the lender, higher debt to income ratio - might not do it for 100% LTV). Just make sure you know what they are doing. Lenders are getting sneaky about this.

 

[f_w]

And don't expect to see significant changes in mortgage rates based on changes in the short-term rates that the fed sets. 30 year Mortgages tend to track the yield on the 10year T-note more closely than the short-term rates.

If you can actually get this loan, it does sound like a competitive rate. I have looked into refinancing recently and I couldn't have done much better.

Given the screwy nature of mortgage lending overall, the caveats 'mshheaddoc' noted certainly apply.

Take this offer and talk to some local banks whether they can match it. They may be more reliable than a nationwide mortgage lender as they have a name to maintain in the local community.

 

[Lesley]

This is a great forum - I've been lurking for awhile and was wondering if I could get a few opinions from people more real estate/financially savvy than myself.

I'm finishing my intern year and have decided, for mostly personal/family reasons, to purchase a home using one of the physician loan programs (I'll be in residency for 5 years still).

Today I talked with a well-known, nationwide bank and was given a quote of 6.0% (~6.1% APR) with 0.1 points for a 30 yr fixed-rate mortgage (100% financing, no PMI) for a ~175k home and roughly $2500 in closing costs. This seems pretty competitive to me based on some other comparisons I've done.

If anyone else out there has been comparing rates recently and could comment I'd be grateful. Thanks

Hi, I think your rates seem very competitive. Just out of curiosity, with 0 points what would your rate be? Is it necessary or worthwhile for you to buy your rate down at all. Sometimes, with 0 points you can get a discount, money that is credited towards you at settlement. The rate and monthly payment are very similar to just paying a small portion of a point (.1-.125). If you are slightly short on cash or would like to preserve cash at closing, owing points or even a percentage of a point at settlement, is still not as favorable as 0 points with a discount (credit). Check to see if this option is available and compare. I think, if you've done your homework and can comfortably afford the payment, now is a great time to buy a home. Historically, these interest rates are very, very low. Good Luck.

http://www.phoenixrealestateguy.com/historical-mortgage-rate-trend-charts/675

 

[plauto]

This is a great forum - I've been lurking for awhile and was wondering if I could get a few opinions from people more real estate/financially savvy than myself.

I'm finishing my intern year and have decided, for mostly personal/family reasons, to purchase a home using one of the physician loan programs (I'll be in residency for 5 years still).

Today I talked with a well-known, nationwide bank and was given a quote of 6.0% (~6.1% APR) with 0.1 points for a 30 yr fixed-rate mortgage (100% financing, no PMI) for a ~175k home and roughly $2500 in closing costs. This seems pretty competitive to me based on some other comparisons I've done.

If anyone else out there has been comparing rates recently and could comment I'd be grateful. Thanks

That seems pretty darn good, as long as closing costs included survey and title insurance, otherwise you're looking at about $1500 extra.