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Message
30 Year Mortgage Rates - What is Reasonable
Posted on 10/27/17 at 9:38 am
Posted on 10/27/17 at 9:38 am
In over my head here as first time home buyer...
House is under contract and everything. Mortgage is in the $250-300k range. Local Texas mortgage company I've been working with quoted me at 4.125% rate with a 4.43% APR. Says they service their own loans for the entire life of the loan so does that fact make up for the high spread? Seems pretty high compared to some of the big banks...If so, can I even shop around at this point in the game or is it too risky. This mortgage company was recommended to me by a friend I trust but the guy at the mortgage company isn't all that detailed in his explanations (not a jerk, just probably doesn't realize what I don't know...).
Thoughts? Thanks for any help fellas.
House is under contract and everything. Mortgage is in the $250-300k range. Local Texas mortgage company I've been working with quoted me at 4.125% rate with a 4.43% APR. Says they service their own loans for the entire life of the loan so does that fact make up for the high spread? Seems pretty high compared to some of the big banks...If so, can I even shop around at this point in the game or is it too risky. This mortgage company was recommended to me by a friend I trust but the guy at the mortgage company isn't all that detailed in his explanations (not a jerk, just probably doesn't realize what I don't know...).
Thoughts? Thanks for any help fellas.
This post was edited on 10/27/17 at 10:10 am
10
Posted on 10/27/17 at 9:46 am to CalcuttaTigah
If you have good credit, you should be getting a better rate.
Posted on 10/27/17 at 9:51 am to CalcuttaTigah
The two questions I have is about your credit score and down payment? If you have good credit and are putting down a decent amount, you should be doing better than 4.125 and probably closer to 3.85-3.90. This was as of a day or two ago.
Now if your credit is just OK and you are putting down 5% or so, that number is fine. Still very historically low but if you can get below 4, I would try.
Now if your credit is just OK and you are putting down 5% or so, that number is fine. Still very historically low but if you can get below 4, I would try.
Posted on 10/27/17 at 10:09 am to SippyCup
Credit is 788 on he report he sent me. I'm putting 10% down . I just wonder if this is a case of using a small town mortgage company.
Posted on 10/27/17 at 10:18 am to CalcuttaTigah
quote:
I just wonder if this is a case of using a small town mortgage company.
Not sure about that but I would definitely look around. Your credit score and down payment should get you lower than 4.125%. At least I would think so. Someone on here may correct me.
Posted on 10/27/17 at 10:37 am to CalcuttaTigah
Thats high, 4 or lower if credit is strong
Posted on 10/27/17 at 10:39 am to CalcuttaTigah
Just went through a similar situation in Texas a few months ago. With good credit, I found it amazing how fast rates started dropping once I introduced a second lender into the mix. Depends on the time you have until closing, etc. But definitely go find a mortgage broker or another bank to run parallel and play them off each other a couple times. You'll probably be able to knock 3/8 or 1/2 off that rate and get them to eat some closing costs.
Posted on 10/27/17 at 11:06 am to CalcuttaTigah
Weird question, but are you buying anywhere near Houston? If so you may be able to get a lower rate going Freddie Mac. They have already enacted some of the counties as disaster zone and can help you get a lower interest rate as a first time buyer.
I also work for a Texas Mortgage Bank and can send you a comparison if you'd like, but there is a reason that guy gets business from referrals. I'm sure he does a good job.
I also work for a Texas Mortgage Bank and can send you a comparison if you'd like, but there is a reason that guy gets business from referrals. I'm sure he does a good job.
Posted on 10/27/17 at 12:18 pm to CalcuttaTigah
That’s too high. Should be 3.75ish or better
Posted on 10/27/17 at 7:21 pm to Tshiz
Yeah I agree. I closed end of September with a 797 credit score and I got 3.75%. Your score is high enough to get that as well.
Posted on 10/27/17 at 10:52 pm to CalcuttaTigah
Depends on the points you are paying. No points, or a credit at 4.125 is pretty reasonable. Rates went up dramatically this week with the payroll and GDP numbers.
Reason the APR spread is so high is because your PMI is included in the APR calculation.
Reason the APR spread is so high is because your PMI is included in the APR calculation.
Posted on 10/27/17 at 11:31 pm to Pvt Hudson
He is correct. Rates have increased all week. If property is eligible for Home Possible then rate should be a little lower.
Posted on 10/29/17 at 10:55 pm to ellesssuuu
4 and an 8th is high with your score and down payment based on not a lot of info. Also the whole talk about servicing your loan is crap. He can’t put that in writing and it doesn’t mean anything anyway. If your loan is sold your terms don’t change. Your rate, principal, term etc are what they are provided you are being sold a conventional fixed rate product.
My advice is the same advice I always give: ask friends for MULTIPLE suggestions about mortgage BROKERS (someone who has access to multiple lenders and products) and sit down and speak with them. Explain what you’re being offered. Be up front about what you do and don’t know and what aspects about the process you want or need education on, etc.
Tell them what your goals are and what’s most important to you. The one who you feel LISTENS and then EDUCATES you the best...I’ll bet that’s who ends up with your business.
Your friend is gonna probably sell you on staying with his guy. Ask your friend if he’s gonna pay the difference between 3 and 7/8ths and 4 and an 8th for the next 15-30? Seriously he probably had a great experience with the guy but every situation is different.
My advice is the same advice I always give: ask friends for MULTIPLE suggestions about mortgage BROKERS (someone who has access to multiple lenders and products) and sit down and speak with them. Explain what you’re being offered. Be up front about what you do and don’t know and what aspects about the process you want or need education on, etc.
Tell them what your goals are and what’s most important to you. The one who you feel LISTENS and then EDUCATES you the best...I’ll bet that’s who ends up with your business.
Your friend is gonna probably sell you on staying with his guy. Ask your friend if he’s gonna pay the difference between 3 and 7/8ths and 4 and an 8th for the next 15-30? Seriously he probably had a great experience with the guy but every situation is different.
Posted on 10/30/17 at 9:35 am to CalcuttaTigah
Calcutta Tigah, I have someone I can recommend to you that lends in TX. Email me at lsutigr531@gmail.com if you want his info.
Posted on 10/30/17 at 9:48 am to CalcuttaTigah
Should be under 4
Posted on 10/30/17 at 8:57 pm to CalcuttaTigah
I locked in 3.75 2 weeks ago
Posted on 10/31/17 at 8:07 am to CalcuttaTigah
It's likely too late man, you need a good 20+ days to close any mortgage so if your offer was accepted already you are way behind the curve.
Given that, the only thing that matters is your interest rate and more importantly your APR which is just your interest rate plus closing costs basically. Shop around, doesn't really matter I've had 5 mortgages and they are all pretty close to the same. Some have better customer service, some have better websites, etc. but at the end of the day the only thing that really matters is your interest rate.
4.1% is still very low. So don't sweat it too much.
Given that, the only thing that matters is your interest rate and more importantly your APR which is just your interest rate plus closing costs basically. Shop around, doesn't really matter I've had 5 mortgages and they are all pretty close to the same. Some have better customer service, some have better websites, etc. but at the end of the day the only thing that really matters is your interest rate.
4.1% is still very low. So don't sweat it too much.
Posted on 10/31/17 at 10:11 am to CalcuttaTigah
4% should be the rate . Rates have moved up for the last couple of weeks. I haven't locked a 3.85% on 30yr in 2 weeks. btw i do this for a living
Posted on 10/31/17 at 1:41 pm to baldona
quote:
baldona
quote:
It's likely too late man, you need a good 20+ days to close any mortgage so if your offer was accepted already you are way behind the curve.
I'd bet you a six-pack of Abita Beer that there's a due diligence clause in his agreement that says if he doesn't get qualified for his mortgage he can't be held responsible for breach of the PA. If he instructed the current broker/loan officer to stop moving his file forward-immediately-he'd be perfectly within the confines of his PA's clause saying that he hasn't yet been qualified.
He can then let them know that he'd like to ask for an extension of 15-20 days as he had a situation with his financing that necessitated he start over again with a new loan officer.
If he's frank, up front and honest-and he has a high quality realtor-I don't foresee any issue with a seller whose already agreed on their price giving a little juice with respect to the timeframe.
JMO. YMMV as always.
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