Mortgage Rates

[owlegrad]

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So I know how much we love discussing credit cards and investing so I thought perhaps I could ask what is the best mortgage rate out there is right now? Is Lending Tree the best way to compare rates or is there something better?

Thanks!

 

[ChalupaBatman86]

Bankrate.com is the best place I have found to view current rates. If you "buy down" your rate by paying points you can deduct the cost of points from your taxes.

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[confettiflyer]

http://www.mortgagenewsdaily.com is a more robust and up to date site with average rates polled daily in response to market movements. Most areas free, reprice updates and minute by minute MBS movement are paid.

More later


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[Dr Wario]

So I know how much we love discussing credit cards and investing so I thought perhaps I could ask what is the best mortgage rate out there is right now? Is Lending Tree the best way to compare rates or is there something better?

Thanks!

Bankrate is good for a quick look at rates in your area, lending tree is fine but it requires that you give a lot of info to them (their rates are more customized) and you will have lenders calling you constantly for awhile after you put in an inquiry. What I am seeing (and recommend) are 15 year fixed at about 2.75 and 5/1 arms also about 2.75. I strongly suggest people say away from anything longer than 15 year fixed because most loans last between 3-5 years (people move, refi etc) and the premium you are paying to keep the rate fixed for 30 years is fairly steep.

 

[Dr Wario]

Bankrate.com is the best place I have found to view current rates. If you "buy down" your rate by paying points you can deduct the cost of points from your taxes.

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I caution most people away from paying points because most loans only last 3-5 years (many banks estimate closer to the 3 year mark) so it is a fairly big gamble if points will pay off. If you are considering paying points, do the math to determine your breakeven point and think very hard if you will keep the loan for at least that amount of time (most people substantially overestimate the length of time they will have a particular mortgage).

 

[Momus]

I do not recommend paying points also. You need to calculate the break even points and see if you will keep the loan that long. However, I don't see the benefit of paying points right now since mortgage rate is still fairly low to pay 1% purchase fee and get minimal discount (something like 0.125%) on your mortgage interest.

A lot of people like 15 years fixed if they can afford it. However, I like 30 years fixed even when I know I can afford 15 yrs fixed. It gives me more cash flow to invest in stocks (higher returning assets 6-8%) instead of locking in 3.125% return for the next 30 years (~2% return after accounting mortgage interest deduction). Home price is going up or down irrespective of the money you put on it. Whether you pay it off slowly or faster, you will still get the appreciation return. If you like the idea of not carrying mortgage for a long time, pick 15 years. If you are like me, and can be disciplined enough to invest money saved into stocks, do 30 years fixed. The math most of the time favors debt leverage.

What I see right now the lowest you can get 3.5% 30 years fixed, or 2.75% 15 years fixed. No fee. I get this from Zillow Mortgage. This is where I got my loan last time for the lowest APR and fee. If you don't like dealing with out of states bank (I personally don't care when I got mine), you can take the offer from them to your local bank (they are 99% of the time always higher) and see if they can match it.

 

[kwakster928]

I do not recommend paying points also. You need to calculate the break even points and see if you will keep the loan that long. However, I don't see the benefit of paying points right now since mortgage rate is still fairly low to pay 1% purchase fee and get minimal discount (something like 0.125%) on your mortgage interest.

A lot of people like 15 years fixed if they can afford it. However, I like 30 years fixed even when I know I can afford 15 yrs fixed. It gives me more cash flow to invest in stocks (higher returning assets 6-8%) instead of locking in 3.125% return for the next 30 years (~2% return after accounting mortgage interest deduction). Home price is going up or down irrespective of the money you put on it. Whether you pay it off slowly or faster, you will still get the appreciation return. If you like the idea of not carrying mortgage for a long time, pick 15 years. If you are like me, and can be disciplined enough to invest money saved into stocks, do 30 years fixed. The math most of the time favors debt leverage.

What I see right now the lowest you can get 3.5% 30 years fixed, or 2.75% 15 years fixed. No fee. I get this from Zillow Mortgage. This is where I got my loan last time for the lowest APR and fee. If you don't like dealing with out of states bank (I personally don't care when I got mine), you can take the offer from them to your local bank (they are 99% of the time always higher) and see if they can match it.

I am in agreement with this. In my opinion, since there is no penalty for paying down mortgage early and interest on a mortgage is tax deductible, it is better to take the cash on hand and invest in other vehicles.

Now, interest rate is only part of the equation. You have to consider the cost of home insurance and property taxes.

 

[owlegrad]

Thanks for the feedback so far!

 

[BMBiology]

Take the 3.5% interest, 30 years, no point. Since inflation is 2-3% per year and since you will get a portion of the interest back (tax deduction), it is pretty much free money right now. If you are worried hold at least 1 year living cost in liquid asset (put cash in a saving account where you will get 0.9% interest like Ally).

Don't shop around for the best rate yet because they will want to do a credit check which may hurt your credit score. Just get a prequalification or preapproval letter from one lender. Submit it with your bank statement showing you have enough money for the down payment when you make an offer. Once the offer has been submitted then shop for the best rate. Check out PenFed, even Chase because big banks like strong applicants and they would give you a competitive rate.

People thought interest rate would jump in 2016 because the Fed raised its interest rate and they rushed in to buy. Instead the opposite happened.


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[BMBiology]

I forgot you are from Florida where there is no state income tax. Your tax liability, even with the interest rate deduction, may not be much compared to standard deduction. I guess it depends on how much money you are going to spend on the house. Download TaxCaster and punch in the numbers.

Remember you have to protect your own interest. Don't depend on your real estate agent to do it for you. I have yet worked with an agent who told me not to buy. If you like it they will do the paperwork and collect the commission.

This is what I always do:
- drive there in the morning and night to check out the area
- check out the parking situation with the city. Can you get a permit to park on the street at night?
- is a high school, church, big business near by? Elementary school is OK because parents like to walk their kids to school.
- search the data base for sex offenders. You don't want to buy a house next to a sex offender's house
- buying a house in the middle of a street is ideal because less noise and traffic
- check out the ceiling for water stain which indicates the roof needs fixing. Ask when was the last time the roof was replaced
- check out the school ranking. This is a big deal with parents and would add value to your house
- look around the outside and see if there is any big tree that is unrooting the house
- ask if there is any remodeling or extension. If it is not in its original structure, then it may look weird and out of place

Most likely you will end up giving up some things. There is no ideal house even if you have $2M to spend on a house.


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[Dr Wario]

I do not recommend paying points also. You need to calculate the break even points and see if you will keep the loan that long. However, I don't see the benefit of paying points right now since mortgage rate is still fairly low to pay 1% purchase fee and get minimal discount (something like 0.125%) on your mortgage interest.

A lot of people like 15 years fixed if they can afford it. However, I like 30 years fixed even when I know I can afford 15 yrs fixed. It gives me more cash flow to invest in stocks (higher returning assets 6-8%) instead of locking in 3.125% return for the next 30 years (~2% return after accounting mortgage interest deduction). Home price is going up or down irrespective of the money you put on it. Whether you pay it off slowly or faster, you will still get the appreciation return. If you like the idea of not carrying mortgage for a long time, pick 15 years. If you are like me, and can be disciplined enough to invest money saved into stocks, do 30 years fixed. The math most of the time favors debt leverage.

What I see right now the lowest you can get 3.5% 30 years fixed, or 2.75% 15 years fixed. No fee. I get this from Zillow Mortgage. This is where I got my loan last time for the lowest APR and fee. If you don't like dealing with out of states bank (I personally don't care when I got mine), you can take the offer from them to your local bank (they are 99% of the time always higher) and see if they can match it.

Why would you not get a 5/1 arm then? As I see it, there is fairly little chance a person in today's world will have the same loan for 30 years, why are you paying a 0.75% premium for the off chance that interest rates will go up > 0.75 in 5 years AND you will still have the same loan? Note that 5/1 ARMs are amortized over 30 years so cashflow is better vs a 30 year fixed due to reduced rate. This is why I generally only recommend 15 year fixed or 5/1 arm, I personally chose the 15 year fixed because it was the same rate as the ARM at the time but knowing I am locked into a rate gives me more confidence to invest in riskier assets.

 

[Momus]

I will not submit bank statement when I submit offers, especially when you have more money than you need . It removes some part of your negotiation leverage when they can see how much money you have in the bank. Pre-approval letters is fine.

Why would you not get a 5/1 arm then? As I see it, there is fairly little chance a person in today's world will have the same loan for 30 years, why are you paying a 0.75% premium for the off chance that interest rates will go up > 0.75 in 5 years AND you will still have the same loan? Note that 5/1 ARMs are amortized over 30 years so cashflow is better vs a 30 year fixed due to reduced rate. This is why I generally only recommend 15 year fixed or 5/1 arm, I personally chose the 15 year fixed because it was the same rate as the ARM at the time but knowing I am locked into a rate gives me more confidence to invest in riskier assets.

You forget we live in unprecedented times when 0.75% rise in interest rate is considered HUGE. I am not sure if you follow historical mortgage interest rate over the past 50 years. Hindsight is always 20/20. Let's say the life time cap is 5%. It's possible 1%/yr increases and anyone doing ARM will be stuck with high interest up to 7.5%/yr looking to refinance for a lower rate that I wouldn't never get to see again. If the rate kept on going down on 30 yrs fixed, I'd just refinance. If it went up with ARM, I'd be SOL. Just like you, I was locked into a rate that I was comfortable with at the time of applying a loan, never mind a short term 5 years cash flow when I know what I'll be locked into the next 25 years, and still have money left to invest into higher expected return assets.

 

[ancienbon]

very good discussion here. I am working with Drb bank to get a mortgage loan. i already have my student loans refinanced with them. The lowest rates i have been quoted for the past few weeks is 3.625 % fixed for 30 years.

 

[confettiflyer]

I see some credit unions offering 5/5 loans....very interesting product, especially if near term interest rates are very low. You could functionally have a 3% loan for 10 years depending on what shakes out in 5. I think PenFed or mostly credit unions offer this.


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[kwakster928]

I will not submit bank statement when I submit offers, especially when you have more money than you need . It removes some part of your negotiation leverage when they can see how much money you have in the bank. Pre-approval letters is fine.

You forget we live in unprecedented times when 0.75% rise in interest rate is considered HUGE. I am not sure if you follow historical mortgage interest rate over the past 50 years. Hindsight is always 20/20. Let's say the life time cap is 5%. It's possible 1%/yr increases and anyone doing ARM will be stuck with high interest up to 7.5%/yr looking to refinance for a lower rate that I wouldn't never get to see again. If the rate kept on going down on 30 yrs fixed, I'd just refinance. If it went up with ARM, I'd be SOL. Just like you, I was locked into a rate that I was comfortable with at the time of applying a loan, never mind a short term 5 years cash flow when I know what I'll be locked into the next 25 years, and still have money left to invest into higher expected return assets.

It makes me laugh when some people treat houses like a car. Let's not forget guys, a house is a LONG-TERM asset that heavily depends on various market conditions. Sure people flip houses when the markets are good and have enough cash cushion to ride out the bad times, but for an average Joe like us, it is better to take a conservative approach and lock in the low fixed rates, rather than playing with the ARM game.

Momus is absolutely correct that you will not see a period of low mortgage rate for a long time. Going forward, interest rate is only gong to go up not down. ARM is attractive if you have enough money to put down and you know for fact that you will get rid of the house (aka flipped house or income property.) If are you are going to put your primary house on ARM with not enough money down... you are risking a lot more.

 

[owlegrad]

very good discussion here. I am working with Drb bank to get a mortgage loan. i already have my student loans refinanced with them. The lowest rates i have been quoted for the past few weeks is 3.625 % fixed for 30 years.

That is the same exact rate I was quoted by Wells Fargo, who holds my current mortgage. Glad to know I am not missing some secret to an ultra-low rate or something, lol.

P.S. - I can't believe no one called me out on the typo in the title!

 

[npage148]

With rates in the mid-3s I see little point buying points or going ARM. You might save a little money or get screwed if rates blow up and/or the market tanks.

Something to consider is that anyone thinking of FHA, you will be locking into PMI for the life of the loan now unless you do a complete refi. It use to be different before. If you are not fancy enough to have 20% down check around with credit unions. We recently found one with a program that let you skip PMI with 10% down and 750+ credit. Combined with the rate offered 3.625 it wasn't a bad deal. Getting out of pmi save a lot monthly.

I will now prepare myself of the tirade of people saying if you don't have 20% down you shouldn't be buying a house.

 

[pezdispenser]

Some things I wish I knew before:

1. Title Insurance
I know some states do it differently, but in Florida you have to get title insurance and there are actually rates specified in the Statutes. It's about $1,500 for a $250k mortgage. What I didn't know when I bought my house was that you can shop around because some title insurers charge less than the specified rate. I used entitledirect.com when I refinanced and saved about $400.

2. Closing costs
These can add up to a lot so keep them in mind throughout the home buying process. For example, you may think you have a 20% downpayment saved of $50k, so you can afford a $250k house. But you have to pay closing costs and the lender needs you to have a few months of expenses in reserve on top of that, so you really need $65k+ in the bank.

If you go below 20% down, then you will need an escrow account, so be aware that you will have to pay the first year of home insurance plus 2 months into the escrow, and 2 months of property taxes. These could easily add up to an additional $2,000 which you'll have to bring to the closing table.

 

[Dr Wario]

It makes me laugh when some people treat houses like a car. Let's not forget guys, a house is a LONG-TERM asset that heavily depends on various market conditions. Sure people flip houses when the markets are good and have enough cash cushion to ride out the bad times, but for an average Joe like us, it is better to take a conservative approach and lock in the low fixed rates, rather than playing with the ARM game.

Momus is absolutely correct that you will not see a period of low mortgage rate for a long time. Going forward, interest rate is only gong to go up not down. ARM is attractive if you have enough money to put down and you know for fact that you will get rid of the house (aka flipped house or income property.) If are you are going to put your primary house on ARM with not enough money down... you are risking a lot more.

People have been saying that rates can't go lower and will only go up for the last 20 years. Many people think back on the mortgage crisis and worry that having an ARM will cause them to loose their homes. Please look at the following chart that details mortgage rates for the last 40 years.

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

As stated previously, the average home loan is held for a period of 3-7 years (depends on the source) but this is nothing close to a 30 year term, but see how close it is to the fixed portion of a 5/1 ARM? Many people believe that they are ahead if the rates go higher than their fixed rate as soon as an ARM would have been set to expire, but let's explore this. Let's take a 250,000 mortgage and compare a 5/1 ARM at 2.75% and a 30 year fixed at 3.5%. After a period of 5 years, the 5/1 arm would have paid a total of 32,982 in interest and the 30 year fixed paid a total of 42,253, which gives the ARM a savings of 9,271 over 5 years. Now lets assume the rate adjusts to 5% on the ARM (about the highest it as been in the last 10 years and almost double what it is today), the current principle balance is approx 223,000 for each loan, so the fixed pays 7741 interest in year 6 and the ARM pays 11,351, a difference of 3,610. Extrapolating this out, if the ARM adjusts to 5% right at year 6 and stays there, the breakeven point for the two loans comes in right about year 8. It really sounds to me like you are paying an awfully high premium to insure against the rate almost doubling AND you keeping the loan for more than 8 years.

By the way, the mortgage crisis was not caused by the 5/1 ARM as it exists today. Banks offered teaser rates for the first year that were below market value, thus the type of loan that really caused the crisis was basically a 1/1 ARM that was guaranteed to go up by at least 2% at the beginning of year 2, yet banks calculated a person's ability to repay based on the teaser rate offered only in the first year. For many people, they saw their interest rate triple, and this caused their payment to double making them no longer able to afford the loan.

 

[ancienbon]

Some things I wish I knew before:

1. Title Insurance
I know some states do it differently, but in Florida you have to get title insurance and there are actually rates specified in the Statutes. It's about $1,500 for a $250k mortgage. What I didn't know when I bought my house was that you can shop around because some title insurers charge less than the specified rate. I used entitledirect.com when I refinanced and saved about $400.

2. Closing costs
These can add up to a lot so keep them in mind throughout the home buying process. For example, you may think you have a 20% downpayment saved of $50k, so you can afford a $250k house. But you have to pay closing costs and the lender needs you to have a few months of expenses in reserve on top of that, so you really need $65k+ in the bank.

If you go below 20% down, then you will need an escrow account, so be aware that you will have to pay the first year of home insurance plus 2 months into the escrow, and 2 months of property taxes. These could easily add up to an additional $2,000 which you'll have to bring to the closing table.

Some things I wish I knew before:

1. Title Insurance
I know some states do it differently, but in Florida you have to get title insurance and there are actually rates specified in the Statutes. It's about $1,500 for a $250k mortgage. What I didn't know when I bought my house was that you can shop around because some title insurers charge less than the specified rate. I used entitledirect.com when I refinanced and saved about $400.

2. Closing costs
These can add up to a lot so keep them in mind throughout the home buying process. For example, you may think you have a 20% downpayment saved of $50k, so you can afford a $250k house. But you have to pay closing costs and the lender needs you to have a few months of expenses in reserve on top of that, so you really need $65k+ in the bank.

If you go below 20% down, then you will need an escrow account, so be aware that you will have to pay the first year of home insurance plus 2 months into the escrow, and 2 months of property taxes. These could easily add up to an additional $2,000 which you'll have to bring to the closing table.

very informative here. Did you get an estimate of the closing costs ? you could have asked your loan officer and they would have given you an estimate. Here in Florida for a home that costs above 350 k, the closings costs would be about 11 to 12 k with 10 percent down per my loan officer. That includes 5 to 6 months of taxes and a year of home owner insurance.

 

[npage148]

You're legal required to receive a closing cost estimate but it's little bit of shock esp after you have a signed contract based on what you are comfortable putting down

 

[WVUPharm2007]

Don't forget to talk to some local guys, too. The best rate I found on my mortgage was from a dude named Bob down the street.

 

[confettiflyer]

The post-TRID cost estimate sheets are pretty informative, but ask your RE agent for some closing costs so you can piece together how much extra you need to fork over other than your down payment and earnest money.

I dunno, people said the 10 year t-Bill wouldn't go sub-2% and that 4% interest rates were the best things could ever get...time to fix that crystal ball, hahah.

Anyway, I think the best execution today is 3.5 to 3.625% @ 0-0.5 points. Changes daily/2x a day depending on the investor in play. Usually desks will move conservative ahead of a weekend or NFP week and pull back early the following week.

I'm a fan of 30 year loans and paying them off early, but allowing the leeway for security reasons (i.e. job loss, underemployment, etc...). Consider the additional (tax-deductible) interest as an income loss insurance policy....it buys you time, literally. Your emergency fund can fund 12 months of housing vs. 6, that might make the difference in needing to job hunt or avoiding selling under duress.

As for points, I mean, if you believe this is the bottom for rates and you're in your "forever home," who cares what the average loan hold term is?

I usually tell people in first time home buying situations who will sell in 5-7 years to not pay points, or even consider negative points if down payment and closing costs are onerous (basically up front cash poor, but with good enough cash flow to meet DTI reqs, and having a good enough score to not go FHA).

Damn, I remember when 6% was a fantastic mortgage rate ~10 years ago.

Hell I stumbled on my parents' old bill of sale for a Pontiac in 1981.....interest rate was 18%.

And I stumbled upon my aunt's Note for her stupid home loan from 2005 (still has it)....get this, the rate adjusted (and still adjusts) EVERY 30 DAYS. The payment resets annually. In theory, if rates rise a lot this month, and her payment doesn't reset for another 8 months, this loan becomes negatively amortizing. It uses a defunct/superseded index that takes the average rate of depositor accounts (currently like 0.5%)

I can't believe that loan is still alive.


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[farmadiazepine]

I got a 3.25% fixed 30 year for $625,000 back in November of 2012. That was when mortgages hit a historic low. The rates now are pretty much the same. It looks like fixed 30 year mortgage rates are now around 3.6-ish %. So many people will tell you different things on what to do. Honestly, a lot of it seems too complicated, but if I were in your shoes I would do my research and look into what everyone said.

If you are looking for a mortgage and you want a fixed 30 year, now is still one of the best times to get it.

I also bought my home knowing this is where I plan to live for the rest of my life. This is a long term investment for me, not only financially, but in all other aspects of life when considering family, wife, kids, excellent schools, low property taxes, businesses, proximity to NYC, etc.

 

[pezdispenser]

very informative here. Did you get an estimate of the closing costs ? you could have asked your loan officer and they would have given you an estimate. Here in Florida for a home that costs above 350 k, the closings costs would be about 11 to 12 k with 10 percent down per my loan officer. That includes 5 to 6 months of taxes and a year of home owner insurance.

Yeah, everyone gets a GFE/Loan Estimate of closing costs when you apply for a mortgage. My point is, don't rely too much on it or what your loan officer says because some items can change substantially depending on when exactly you close. Instead, understand how these items are calculated, and make sure you have enough cash to close.

For example, property taxes in Florida are paid in arrears in November. So the seller has to credit the buyer for the year to date in property taxes. (Actually you don't know the exact property taxes until Nov, so you use an estimate and make a contract to reconcile any differences at that time). Then, if you have an escrow account, you will have to deposit the year to date of property taxes plus a 2 month reserve.

 

[Momus]

It's normal for closing cost to be 2-3% of purchase price.

 

[kwakster928]

People have been saying that rates can't go lower and will only go up for the last 20 years. Many people think back on the mortgage crisis and worry that having an ARM will cause them to loose their homes. Please look at the following chart that details mortgage rates for the last 40 years.

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

As stated previously, the average home loan is held for a period of 3-7 years (depends on the source) but this is nothing close to a 30 year term, but see how close it is to the fixed portion of a 5/1 ARM? Many people believe that they are ahead if the rates go higher than their fixed rate as soon as an ARM would have been set to expire, but let's explore this. Let's take a 250,000 mortgage and compare a 5/1 ARM at 2.75% and a 30 year fixed at 3.5%. After a period of 5 years, the 5/1 arm would have paid a total of 32,982 in interest and the 30 year fixed paid a total of 42,253, which gives the ARM a savings of 9,271 over 5 years. Now lets assume the rate adjusts to 5% on the ARM (about the highest it as been in the last 10 years and almost double what it is today), the current principle balance is approx 223,000 for each loan, so the fixed pays 7741 interest in year 6 and the ARM pays 11,351, a difference of 3,610. Extrapolating this out, if the ARM adjusts to 5% right at year 6 and stays there, the breakeven point for the two loans comes in right about year 8. It really sounds to me like you are paying an awfully high premium to insure against the rate almost doubling AND you keeping the loan for more than 8 years.

By the way, the mortgage crisis was not caused by the 5/1 ARM as it exists today. Banks offered teaser rates for the first year that were below market value, thus the type of loan that really caused the crisis was basically a 1/1 ARM that was guaranteed to go up by at least 2% at the beginning of year 2, yet banks calculated a person's ability to repay based on the teaser rate offered only in the first year. For many people, they saw their interest rate triple, and this caused their payment to double making them no longer able to afford the loan.

Sure, the math works out that 5/1 ARM will offer significant savings. But you are operating in a slew assumptions. Unless you have a crystal ball and see into the future, you can never guarantee anything. I guess I misspoke when I said the rate would only go up (hell it might go down even more). Yes people may hold on to mortgages for 3-7 years, but that's totally depends on each individual's situation. If a person is going to keep the house for a long time, let say greater than 7+ years, it makes no sense to me to figure out what your mortgage payment is going to be every single year after the first fixed year term is over. Chances are they will refinance it to a fixed term loan anyway.

What you are saying is not wrong. But, we cannot apply to every situation. That's all I am saying.

 

[npage148]

The worst part of a ARM in my mind is having to hold onto a house in a soft market or an underwater due to unforeseen circumstances and having a changing and potentially ballooning payment.

 

[pezdispenser]

One thing about ARMs which can be a pro is that if you make extra principal payments, then every time the interest rate adjusts, they will also recalculate the payment based on the reduced principal balance, but extended out to the remainder of the 30 year term. My parents were doing this with their ARM so after a few years the monthly payment was only like $300.

 

[owlegrad]

Anyone familiar with eclick lending? They are offering the best rate and fewest fees. In fact the offer sounds too good to be true and it is scaring me, lol. Anyone have any experience or know anything about them?

 

[BMBiology]

Anyone familiar with eclick lending? They are offering the best rate and fewest fees. In fact the offer sounds too good to be true and it is scaring me, lol. Anyone have any experience or know anything about them?

What rate were you offered? What is the fee? Expect interest rate to be even lower today.


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[owlegrad]

What rate were you offered? What is the fee? Expect interest rate to be even lower today.


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Initial quote of 3% fixed 15 year for condo. No points or fees other than title fees.

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[PumpkinSmasher]

Initial quote of 3% fixed 15 year for condo. No points or fees other than title fees.

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What % down and are they requiring PMI for less than 20%?

 

[owlegrad]

What % down and are they requiring PMI for less than 20%?

20% down

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[pezdispenser]

Initial quote of 3% fixed 15 year for condo. No points or fees other than title fees.

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That's a little above the par rate of around 2.875%, so they are charging a higher interest rate to make up for no points and no fees

 

[owlegrad]

That's a little above the par rate of around 2.875%, so they are charging a higher interest rate to make up for no points and no fees

You may well be right but it's the same rate I was offered by Wells Fargo and their fees and points were ridiculous. It's also the same rate I was quoted by Quicken Loans but I never got to the point of finding out they are fees or points.

I was told the rates for condos are a little higher and that I would have got 2.85 for a single-family home.

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[Momus]

You may well be right but it's the same rate I was offered by Wells Fargo and their fees and points were ridiculous. It's also the same rate I was quoted by Quicken Loans but I never got to the point of finding out they are fees or points.

I was told the rates for condos are a little higher and that I would have got 2.85 for a single-family home.

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I got 2.75% today 15 yr fixed condo using my usual zillow mortgage, no fee $1. So, for me that's a no go for your lender.

Loan origination fee $1,490
Appraisal fee $500
Lender credit ($1,989)
Total Estimated Fees $1

 

[owlegrad]

I got 2.75% today 15 yr fixed condo using my usual zillow mortgage, no fee $1. So, for me that's a no go for your lender.

Loan origination fee $1,490
Appraisal fee $500
Lender credit ($1,989)
Total Estimated Fees $1

Thanks, I was mostly worried that I was being naive thinking I could get a loan that good without points or fees. Wells Fargo agent made it sound like I was for certain getting lied to or being scammed. I figured he was just blowing smoke/using scare tactics but I figured you or someone here would let me know the truth. Thanks!

 

[Momus]

Thanks, I was mostly worried that I was being naive thinking I could get a loan that good without points or fees. Wells Fargo agent made it sound like I was for certain getting lied to or being scammed. I figured he was just blowing smoke/using scare tactics but I figured you or someone here would let me know the truth. Thanks!

I used one of random mortgage company out of CA in the past, I got what was quoted on Zillow website 3.125% 30 yr fixed in 2013. No BS.

Local big banks: Chase, BofA, Wells Fargo, Citi couldn't beat their rate so I went with random bank.