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Started By
Message
re: Can I do better than a 3% closing cost on a new build?
Posted on 11/5/15 at 9:59 am to hawkeye007
Posted on 11/5/15 at 9:59 am to hawkeye007
quote:
I can understand you wanting to get the lowest closing cost possible but something you might want to think about is the process. I am a little biased because I work for Whitney Bank, but we do mortgages at Whitney Bank and a lot of them. The ease of the process is worth the extra $1000 dollars. Also get with your contact at Whitney Bank and show them a GFE from Mid South and see if they will match it.
I only talked to someone in person at Whitney so far and the guy did seem to have it together. I have only talked to Mid South and others over the phone so far. $1000 is a $1000 though. They are all going to just do paperwork and then sell the loan at the end of the process. I have great credit, enough savings reserved, and all that so I don't think it will be difficult with any of the banks I am considering. They are all within a minute or two of me also. My main concern is how competitive the 30 year is going to be. I might see if the guy will match on the GFE because I think he did say that they would try to match the 30 year if I shopped it at the end. Thanks for bringing that up.
This post was edited on 11/5/15 at 10:02 am
0
Posted on 11/5/15 at 10:06 am to XanderCrews
quote:
Check Fifth District.
No branches near me. I am an hour away from NOLA.
Posted on 11/5/15 at 10:07 am to hawkeye007
Hawkeye, what is your 30 year prime rate today? Do you guys match on that the same way you might on the GFE?
Posted on 11/5/15 at 12:09 pm to man117
I heard GMFS advertising a similar product on the radio last week. I personally have had no experience with them but my sister bought her house through them with a traditional mortgage and she had good things to say about them. One thing the ad mentioned as a benefit is that you can lock in your long term interest rate at the start of the construction loan and not have to worry about the rate going up while you are building. If you happen to call, I would be interested to hear what they have to offer because I will be in a similar situation in the coming months.
Posted on 11/5/15 at 1:25 pm to cdl2006
quote:
One thing the ad mentioned as a benefit is that you can lock in your long term interest rate at the start of the construction loan and not have to worry about the rate going up while you are building.
I just talked to them in person today. Closing cost was the highest but they said they have some wiggle room to try to get closer to competitors. $8216 GFE on the 264k loan which is 3.1%.
They are similar to Whitney as in they use a 5 year ARM for the construction portion. At the end you can stay in it or convert to 30 year. They are very competitive on the 30 year rate (3.875% today). They had a much lower rate for the ARM @ 3.5% whereas everyone else is over 5.5% so far. So maybe that is the niche for them, if rates shoot up they have you protected for a while. I still need to talk to Iberia and Community Bank though.
Edit: Whitney is 2.875% on the ARM portion and Community bank doesn't do a one time close and only does max amortizations of 20 years so they are out of the running.
This post was edited on 11/5/15 at 6:04 pm
Posted on 11/5/15 at 2:43 pm to man117
Thanks for sharing the info you got.
Posted on 11/5/15 at 4:43 pm to Rhino5
quote:
We charged 5.25% construction rate when 30 year rates were 3.5%.
Prime + 2 is high for a construction loan.
Posted on 11/5/15 at 4:46 pm to man117
quote:
Hawkeye, what is your 30 year prime rate today? Do you guys match on that the same way you might on the GFE?
Same as everyone, 3.25. Fed did not raise the rate. Think you might want to know 30 year fixed rate?
This post was edited on 11/5/15 at 4:47 pm
Posted on 11/5/15 at 6:02 pm to ItNeverRains
quote:
Same as everyone, 3.25. Fed did not raise the rate. Think you might want to know 30 year fixed rate?
Yes I meant I wanted to know what their best 30 year was for excellent credit without points. Talked to my contact over there today and they told me 4%. I have gotten quotes for 4% from two banks and 3.875 from two others (one of which said they would even "try " to match the 3.75 I saw on Bankrate if I had the offer sheet at completion). That .25% is 13k over the life of the loan so it is a big factor.
This post was edited on 11/5/15 at 6:34 pm
Posted on 11/6/15 at 3:07 pm to JonTheTigerFan
I have yet to find a bank in the monroe area that will be more than 85% LTV. I am heading to the bank next week with finished plans and bid and hopefully the appraisal will come back good.
Posted on 11/6/15 at 10:59 pm to daviddsims
quote:
1000 is a $1000 though
I'll eat a lot of headaches to save $1000
Posted on 11/9/15 at 10:30 am to man117
this morning it was 4%.
Posted on 11/9/15 at 10:34 am to man117
if your concerned with rate go with the 10/1 arm on the construction product. the rate would be 3.375% amortized over 30yrs. If your still in any 30yr mortgage after 10yrs you need to refi to a 15yr and pay the house off anyway.
Posted on 11/9/15 at 4:34 pm to hawkeye007
quote:
if your concerned with rate go with the 10/1 arm on the construction product. the rate would be 3.375% amortized over 30yrs. If your still in any 30yr mortgage after 10yrs you need to refi to a 15yr and pay the house off anyway.
Thanks for the suggestion but I'm getting a traditional 30 year and just pay it off as I feel comfortable. I ending up going with Gulf Coast. I'l write a little later summary later.
Posted on 11/9/15 at 9:04 pm to man117
I'm in Houma and work for a local bank, let me know if you change your mind. You can post your email and I'll email you
Posted on 11/9/15 at 9:13 pm to thibtigerfan
(no message)
This post was edited on 11/10/15 at 10:32 am
Posted on 11/10/15 at 6:26 pm to daviddsims
OP,
Did you use MB with Gulf Coast?
Did you use MB with Gulf Coast?
Posted on 11/10/15 at 6:54 pm to SomethingLikeA
^^^^yes
Posted on 11/11/15 at 7:15 am to man117
quote:
man117
Drop me a line: ziggy.td@gmail.com
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