question for mortgage guys

S

snoozer

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Aug 5, 2004
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We are refinancing and I got a rate and I am trying to figure out if it is good or not. We are refinancing for what we owe on our house... 130000. The guy I am working with locked me in at 6.25% with no closing costs (including no charge for the appraisal. we live in Michigan, our credit is excellent, and equity (debt to income) it good also.

I still don't understand how one place can have the same rate as another yet no closing costs, but I not to worried about that. I just want to understand if the rate I have is a good rate?

Also, he locked me in at 6.25%, if the rate goes down prior to me closing, what chance do I have to get it lowered?
 
S

Slink Dawg

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30 or 15 years? What rate are you currently at? How much time left on current mortgage?
 
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Glenn Quagmire

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snoozer said:
We are refinancing and I got a rate and I am trying to figure out if it is good or not. We are refinancing for what we owe on our house... 130000. The guy I am working with locked me in at 6.25% with no closing costs (including no charge for the appraisal. we live in Michigan, our credit is excellent, and equity (debt to income) it good also.

I still don't understand how one place can have the same rate as another yet no closing costs, but I not to worried about that. I just want to understand if the rate I have is a good rate?

Also, he locked me in at 6.25%, if the rate goes down prior to me closing, what chance do I have to get it lowered?
Click to expand...

A few questions I would have...

1) What loan program are you going with? 30 Year Fixed? 5 Year ARM? Generally speaking, 6.25% is a very good rate right now. There are variations depending on what program you have, but just hearing that you got that rate tells me you have excellent credit.

2) Are you working with a broker, or directly with a lender? If it's a broker, find out EXACTLY what he means when he says no closing costs. Oftentimes the broker will say no closing costs, but they only mean THEIR closing costs (i.e. processing fee, doc prep fee, etc.).There are often 3rd party fees that a broker cannot waive (such as title fees, etc.).

Now, if your rate is truly "locked" you don't have to worry about the rate going up or down on you. There are different lock periods... 30 days, 45 days, etc. Basically, you have that allotted time to get the deal funded. Refis are usually easier to get done than purchaes, so if you have a decent lock period, you should be able to count on the 6.25%. But again, ask the guy if your loan is truly locked and how many days you have before the lock expires. Once the lock expires, you are at the mercy of the market and whatever the interest rates have gone up (or possibly down) to.

Hope this helps. Good luck...
 
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Franky Wright

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Heaven, oh!!, this isn't it?!
snoozer said:
We are refinancing and I got a rate and I am trying to figure out if it is good or not. We are refinancing for what we owe on our house... 130000. The guy I am working with locked me in at 6.25% with no closing costs (including no charge for the appraisal. we live in Michigan, our credit is excellent, and equity (debt to income) it good also.
Also, he locked me in at 6.25%, if the rate goes down prior to me closing, what chance do I have to get it lowered?
Click to expand...

Snoozer,

I'm in this business also...
Assuming a couple of things. This is a 30year mortgage, and your middle credit score is over 720, and LTV is over 75% ? Then I think this is a fair rate, although I could have done better for you, but we are not licensed in Michigan right now:shrug:
If the rate goes down, sometimes they can get it lowered, it depends on the wholesaler who is providing the funds, they all work differently.

Hope this helps you Snoozer!


Franky :)


Edit; looks like some things were answered as I was replying...
You should be in pretty good shape with that
 
Last edited:
G

Glenn Quagmire

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Franky Wright said:
Snoozer,

I'm in this business also...
Assuming a couple of things. This is a 30year mortgage, and your middle credit score is over 720, and LTV is over 75% ? Then I think this is a fair rate, although I could have done better for you, but we are not licensed in Michigan right now:shrug:
If the rate goes down, sometimes they can get it lowered, it depends on the wholesaler who is providing the funds, they all work differently.

Hope this helps you Snoozer!


Franky :)
Click to expand...

Damn Franky, you could beat 6.25%? I think I'll give you a call when I need a new mortgage! :SIB
 
S

snoozer

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Aug 5, 2004
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Berkley, MI
Thanks for the quick responses. He is a lender, when I talked, I clarified exactly what no closing costs meant... I told him I want to know (within a few dollars) exactly what I needed to bring to closing. They are paying for the appraisal, credit report, processing and underwriting fee's. My total estimated charges were $24 (to cover interest). Our credit is high 700's (almost 800's).

One more Q, they said they didn't want to put my taxes in mortgage. He told me it was because if I ever can't pay, the bank can help me out (delay payments and such) if my taxes are not rolled in, but their hands are tied if my taxes are paid within my mortgage... is this true?
 
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Glenn Quagmire

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snoozer said:
Thanks for the quick responses. He is a lender, when I talked, I clarified exactly what no closing costs meant... I told him I want to know (within a few dollars) exactly what I needed to bring to closing. They are paying for the appraisal, credit report, processing and underwriting fee's. My total estimated charges were $24 (to cover interest). Our credit is high 700's (almost 800's).

One more Q, they said they didn't want to put my taxes in mortgage. He told me it was because if I ever can't pay, the bank can help me out (delay payments and such) if my taxes are not rolled in, but their hands are tied if my taxes are paid within my mortgage... is this true?
Click to expand...

To be perfectly honest, I've never heard that before. I'm not saying he's wrong, it's just usually not something that comes up in my experience. It's very common, in fact it's usually preferred by borrowers, that they roll the taxes and insurance in with their monthly payment. Most people like the convenience of it. You can pay them either way, (lumped in with the mortgage, or separately) so I guess it's just a matter of your preference.
 
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Franky Wright

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AR182 said:
franky..

are you licensed in arizona ?
Click to expand...

rrc said:
Franky, are you licensed in Indiana?
Click to expand...

Hey guys, let me check tomorrow, we have service agreements with many different places. Some we can do in some states, but not others, and vic-versa. Then it depends on the rate they give us. For instance in Texas right now, rates are higher for us due to the high percentage of foreclosures.

Will get back to you!...

Thx,

Franky
 
MadJack

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Jinxbreaker said:
I'm looking at 5.625 in NC and its going down a 1/2 pt after the Jan 28. You should shop around or wait, that seems a liitle high.
Click to expand...
yup, i don't understand why they said that was a good rate.

everywhere is under 6% here for 30 year fixed :shrug:
 
T

The Boys

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snoozer said:
We are refinancing and I got a rate and I am trying to figure out if it is good or not. We are refinancing for what we owe on our house... 130000. The guy I am working with locked me in at 6.25% with no closing costs (including no charge for the appraisal. we live in Michigan, our credit is excellent, and equity (debt to income) it good also.

I still don't understand how one place can have the same rate as another yet no closing costs, but I not to worried about that. I just want to understand if the rate I have is a good rate?

Also, he locked me in at 6.25%, if the rate goes down prior to me closing, what chance do I have to get it lowered?
Click to expand...

Snoozer........my son is a VP of a mortgage co. I'm gonna check with him and see what programs they offer. Seems like all these mortgage co. have different programs available to them, just depends on the lender???
 
MadJack

MadJack

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snoozer,

click this link and fill in the blanks at top left to find the best rates in your area.

http://money.cnn.com/pf/loan_center/index.html

Interest Rates
Avg
Mortgages - 15 Year Fixed 5.03%
Mortgages - 30 Year Fixed 5.52%
Mortgages - 5/1 Year ARM 5.26%
Used Car - 3 Year 7.40%
New Car - 3 Year 7.00%

never pay points to get a cheaper rate. never!
 
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