Origination Fee? Paying Points? ARM loan-Mortgage

[NICUfello]

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I am in the market for a house. I have rates/quotes from 3 different banks. Looking for some help.

It will be a primary resident.

I am looking at 5 and 7 year ARM loans.

It seems that most loans have an 1% origination. What do you guys think about that?

Seems like I am getting rates all over the board. From 3.5% to 4.1%

BANK1
7/1 ARM
3.75% +1% Origination + Lender Credit $6700
3.625% +1% Origination + Lender Credit $2800

5/1 ARM
3.625% +1% Origination + Lender Credit $4800
3.50% +1% Origination + Lender Credit $900


BANK 2
7/1ARM
4.125%. $2300 origination fee.

BANK3
5/1 ARM $2090 origination fee
3.72%

7/1ARM
3.94% $2090 origination fee

Any thoughts or help would be appreciated.

 

[dpmd]

Haven't used them yet but costco caps lender fees to 650 for regular members and 350 for executive with rates that ended up better than the bank loan I was looking at which had higher fees (despite the big discount they give for having x amount of funds in my accounts with them). Worth checking out if you are a member(or have been thinking about joining.

 

[NICUfello]

Haven't used them yet but costco caps lender fees to 650 for regular members and 350 for executive with rates that ended up better than the bank loan I was looking at which had higher fees (despite the big discount they give for having x amount of funds in my accounts with them). Worth checking out if you are a member(or have been thinking about joining.

Been a member long time

Didn't know they did loans

Will check out

 

[dpmd]

The amount of things you can do for lower cost through costco never ceases to amaze me. I purchased solar through them and it was 15K less than the other companies. And I just got my new car using their auto program and it was so hassle free that it was worth driving an hour to the closest place that does the program.

Not sure how far along you are in the process, but I have an offer in on a house so if things get accepted I will let you know how things go with the costco lender I end up using.

 

[NICUfello]

Appreciate it

I am in Avery competitive market

I made a full price offer on a house
There were 19 other offers
17 were cash

Another house I made offer on, I offered $55k over asking . Will know Monday


House is not fancy
Older than dirt
Very good school district is reason for price hike
And of course Asian cash money

Appreciate you keeping us posted

The amount of things you can do for lower cost through costco never ceases to amaze me. I purchased solar through them and it was 15K less than the other companies. And I just got my new car using their auto program and it was so hassle free that it was worth driving an hour to the closest place that does the program.

Not sure how far along you are in the process, but I have an offer in on a house so if things get accepted I will let you know how things go with the costco lender I end up using.

 

[dpmd]

Just to update we settled on a price last night so after some back and forth emailing, I got the bank I had prequalified with to beat the costco deal on lender fees with the same interest rate. So don't be afraid to play one lender off the other once you get your offer accepted (no good reason to haggle beforehand since the rate won't lock till there is an offer).

 

[NICUfello]

Now they are saying rates went up last week?

7/1 ARM, no origination fee 3.875

If I pay a point, it goes down to 3.675

 

[dpmd]

Now they are saying rates went up last week?

7/1 ARM, no origination fee 3.875

If I pay a point, it goes down to 3.675

Wonder if it is region specific. Rates were down since friday per my lenders

 

[mgdsh]

Now they are saying rates went up last week?

7/1 ARM, no origination fee 3.875

If I pay a point, it goes down to 3.675

Sometimes it's institution specific. After they have a certain amount of business on hand they'll their offered rates, but yes, looking at the bond charts rates did go up over the last week and I'd probably get a lock in place before the FOMC interest rate decision tomorrow.

 

[NICUfello]

Wonder if it is region specific. Rates were down since friday per my lenders

Not sure if its region specific..as my properties are all in one state..

 

[NICUfello]

Sometimes it's institution specific. After they have a certain amount of business on hand they'll their offered rates, but yes, looking at the bond charts rates did go up over the last week and I'd probably get a lock in place before the FOMC interest rate decision tomorrow.

Thank you. I was thinking they are NOT hiking tomorrow, but looking to hike in June.

Other institution has given me a bit higher rate, than the above high 3%s I have been getting on an adjustable Jumbo.

 

[mgdsh]

Thank you. I was thinking they are NOT hiking tomorrow, but looking to hike in June.

Other institution has given me a bit higher rate, than the above high 3%s I have been getting on an adjustable Jumbo.

It's not a matter of if they are hiking or not, the language will be ripped apart and the market will move based on it. You are risking more than what you can gain. Also, a lock can be abandoned. You don't necessarily lose anything but the bank could. Not much stopping you from getting a better rate elsewhere.

 

[dpmd]

Not sure if its region specific..as my properties are all in one state..

No i meant as an explanation why your rates went up and mine went down. But regardless, the rates i was seeing for arms aren't far off from what you are getting (we are doing 15 yr fixed)

 

[Plastikos]

Rates went up because the 10y treasury did, thats the bond to pay attention to if you want to know whats likely to happen with mortgage rates. It went from 1.7 to 1.9 this month, up from 1.5 in february which was a huge undershoot.

 

[NICUfello]

Just locked 3.75% , $7500 lender credit for origination

 

[Mman]

Just locked 3.75% , $7500 lender credit for origination

and why an ARM and not fixed rate?

 

[NICUfello]

and why an ARM and not fixed rate?

It isn't our forever house. My contract is 3 years. I plan to live here 4-5 years at max, thus I went with the ARM.

Additionally, ARM is significantly cheaper, and allows me to still pay down chunks per month, to lower principal, while having lower interest rates.

 

[Mman]

It isn't our forever house. My contract is 3 years. I plan to live here 4-5 years at max, thus I went with the ARM.

Additionally, ARM is significantly cheaper, and allows me to still pay down chunks per month, to lower principal, while having lower interest rates.

Bankrate.com suggests today's average 30 year fixed is 3.68% and 15 year fixed is 2.79%.

 

[dpmd]

Bankrate.com suggests today's average 30 year fixed is 3.68% and 15 year fixed is 2.79%.

I was about to feel a little bad (just locked a little higher than that), but then plugged in my city and rates were higher than that, so I guess it is regional.

 

[NICUfello]

Regional differences make some sense.

 

[bc65]

I wouldn't buy a house if you only plan on being there 3-5 years. You will be better off renting.
I'm guessing that you're in the Bay Area, given that there's 17 cash offers on a house and lots of Asian money. I am very familiar with that market. Houses in the hottest neighborhoods in the Bay Area appreciate at the same rate as the S&P 500. After you factor in both the leverage factor in the plus column and the higher expenses and taxes as negatives, you'll probably break even at best when compared to renting. Sure, you might get lucky and make money when you sell, but it's more likely that you'll lose money when all is said and done, after fees, etc.

I know a doctor who's renting a nice house in one of the best school districts for about the cost of the real estate taxes alone on the same house, were they to buy it today.

 

[NICUfello]

I haven't opted out of renting. We already own one house, so this would be house #2 for us

Haven't found any rental places yet. Two houses came up for rent, one was 3800$ (1500 sq feet) and $4300 (1800 sq feet), and both rented within hours of coming on market. There are no apartment or condo or townhouse in the zip code I am looking to be in, as I don't want to keep changing schools for kids.

Taxes would be $900-$1350 a month here.

One thing I know, if I knew about living 30 minute from hospital requirement prior to specializing, I would have never gone into the field I am in

I wouldn't buy a house if you only plan on being there 3-5 years. You will be better off renting.
I'm guessing that you're in the Bay Area, given that there's 17 cash offers on a house and lots of Asian money. I am very familiar with that market. Houses in the hottest neighborhoods in the Bay Area appreciate at the same rate as the S&P 500. After you factor in both the leverage factor in the plus column and the higher expenses and taxes as negatives, you'll probably break even at best when compared to renting. Sure, you might get lucky and make money when you sell, but it's more likely that you'll lose money when all is said and done, after fees, etc.

I know a doctor who's renting a nice house in one of the best school districts for about the cost of the real estate taxes alone on the same house, were they to buy it today.

 

[bc65]

Those numbers sound familiar. Taxes here are about 1 1/2% of the purchase price. My friend is renting their house for $4300 a month , and the owner would sell for 2.5 million ( the owner likes them, both rental and sale prices are below market) , taxes would be about $3400 a month. That, of course, is just taxes, not mortgage or insurance. Also not included are higher utilities, water bill for the lawn,

Well, good luck. It sounds like you know what you're doing, and you don't have many options. I hope you find something that works for you.

I got my mortgage through a broker, but refinanced several times through Wells Fargo. They have had the best rates in recent years. If they are in your area, see what they can do for you.