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Started By
Message
Mortgage Rates
Posted on 2/5/09 at 12:34 pm
Posted on 2/5/09 at 12:34 pm
Just got back from my banker. She didn't actually put the numbers in and give me a good-faith estimate, but she said the 30 year rate on a refi would be 5.25% for someone with good credit. (I'm not sure what the cutoff is, but my credit score is >800.) This is with the now-ubiquitous, much-despised 1% origination.
And, FWIW, cashing out, up to 80% L/V, wouldn't garner me a higher interest rate. She also suggested I wait a while. She sees interest rates going to 5.00%. (The lowest rate this bank ever quoted was 4.65%.) I said I'm hoping for 4.25%. She said I'm smoking crack. I said I'd give her some if she could get me 4.25% on an 80% cash-out.
What says the MT? Is 5.00% the best I can hope for?
And, FWIW, cashing out, up to 80% L/V, wouldn't garner me a higher interest rate. She also suggested I wait a while. She sees interest rates going to 5.00%. (The lowest rate this bank ever quoted was 4.65%.) I said I'm hoping for 4.25%. She said I'm smoking crack. I said I'd give her some if she could get me 4.25% on an 80% cash-out.
What says the MT? Is 5.00% the best I can hope for?
2
Posted on 2/5/09 at 1:12 pm to Parliament
well if the Rs get the 4% law passed... I would hold out to see whats in the stimulus bill when its passed.
Posted on 2/5/09 at 1:18 pm to Parliament
I was getting set up to refi 15 yrs at 4.25. Before I could close, rates started jumping up.
So right now, I'm holding out hope they start coming back down. They started back down some, now they jumped back up
So right now, I'm holding out hope they start coming back down. They started back down some, now they jumped back up
Posted on 2/5/09 at 1:23 pm to C
quote:
well if the Rs get the 4% law passed...
I thought that was only for first-home buyers?
Posted on 2/5/09 at 2:15 pm to Parliament
waiting on the goverment isnt going to work. when they start buy more MBS(mortgage back securites) they will drive the rate down. now as far as the rate your banker offered you its high. If your credit score is above 740 then there is no hit to rate on cash out below 80% so the par rate today with you paying the 1% origination is 4.875%
Banks for the most part are not competative with brokers on rates but peole tend not to believe me
Banks for the most part are not competative with brokers on rates but peole tend not to believe me
Posted on 2/5/09 at 2:27 pm to bignate76
quote:
If your credit score is above 740 then there is no hit to rate on cash out below 80%...
That's what I figured. I was surprised when I was told it's not always that way.
quote:
Banks for the most part are not competative with brokers on rates but peole tend not to believe me
What are the disadvantages of using a mortgage broker?
Posted on 2/5/09 at 2:31 pm to Parliament
i am one so i am going to be very honest here. the only disadvantage is the time frame and fees. banks tend to be about 500 cheaper in fees and they can process a loan in about a week. the turn times right now with lenders(brokers) is about 2 weeks. but your going to get a better rate and lower payment. and your refinancing so the longer wait want affect you as much
Posted on 2/5/09 at 3:49 pm to bignate76
Nate, I just talked to a loan originator here in BR. My score is 728, and they were offering me 5.5% on an FHA loan. You're saying I'd be better off going to my bank, Chase, and trying them? Also, is it going to hurt my score when it gets pulled twice in a week or two?
Posted on 2/5/09 at 3:55 pm to mydadbeatupyourdad
no the mortgage broker is just giving you a high rate. my rate today on FHA is 5% flat. alot of banks do not do FHA loans. Now chase does but i bet there rate is higher than 5.5% chase sucks. trust me on this i would rather be a BAMA fan then send a loan to chase. i would shoot you an email but i dont have your address.
Posted on 2/5/09 at 3:58 pm to bignate76
why would they give me a higher rate? Is my score not good enough to get the lowest?
Posted on 2/5/09 at 4:03 pm to mydadbeatupyourdad
its a dirty secret in the mortgage industry, called Yield Spread. the lender is going to pay him a % of your loan on the back end for selling you a higher rate. So instead of making just 1% origination he is going to make money that you never see from the bank. this is what gives us brokers a bad name
Posted on 2/5/09 at 4:07 pm to bignate76
how do i tell him 5.5% is bullshite and give me the real rate? lol
or do i just have to shop somewhere else...
or do i just have to shop somewhere else...
Posted on 2/5/09 at 4:15 pm to mydadbeatupyourdad
you can tell him you want 5% and see what he says or shop around and find another broker like me(shamless plug)
Posted on 2/5/09 at 4:19 pm to bignate76
hmmm. last question...where can ordinary lay people like me see the "real" rates so we know we're not getting jewed?
Posted on 2/5/09 at 4:29 pm to mydadbeatupyourdad
you cant thats part of it. if we let you guys see rate sheets we wouldnt make money. And all the places like www.bankrate.com show national averages.. so its an average of the rate not the true lowest rate.
Posted on 2/5/09 at 4:33 pm to bignate76
(no message)
This post was edited on 2/5/09 at 4:41 pm
Posted on 2/5/09 at 4:38 pm to mydadbeatupyourdad
I am closing my 30yr fixed refi next friday at 4.5%. Locked in early Jan though. 
Posted on 2/5/09 at 4:40 pm to creolechef
got it
Posted on 2/5/09 at 4:42 pm to creolechef
quote:
I am closing my 30yr fixed refi next friday at 4.5%.
Posted on 2/5/09 at 4:49 pm to Parliament
yea i have a whole group of loans closing at that rate but we locked them last month and they are taking forever to close
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