*** IS THIS A GOOD MTG RATE??? update with info and question

We were approved a 400k loan ... the rate is 6.875. We went through Bank of America. Is it a competitive rate>? Please answer if you have gone through this process recently - thank you!

We both have credit score in the high 700's ... which is good. This is through bank of america with no PMI and with them paying for the attourney and the title at closing.

QUESTION: If I lock in this rate and find another one can I lock that one in too? or can you only do that once? I KNOW THAT IS PROB. A VERY STUPID QUESTION!

Message edited 5/22/2007 5:07:31 PM.

Re: *** IS THIS A GOOD MTG RATE???

Seems a little bit high...then again, I know the rates have been on the rise recently. We locked in at 6.375% at the end of April.

Re: *** IS THIS A GOOD MTG RATE???

if you have good credit, you can get a better rate, imo.

Re: *** IS THIS A GOOD MTG RATE???

Re: *** IS THIS A GOOD MTG RATE???

It seems like it may be a little high (depending on your credit). Can you pay a point to get the rate down a bit?

Re: *** IS THIS A GOOD MTG RATE???

it seems a little high to me. we locked in about 2-3 weeks ago at 6.125 with no points through chase.

Re: *** IS THIS A GOOD MTG RATE???

We just got a better rate from Citibank. Definitely call around. We were quoted 6.5 with no pts and 6.125 with one pt. The rep at Citibank told us the b/e pt for paying the point is 3 years so we are going for the 1 point.

Re: *** IS THIS A GOOD MTG RATE???

That seems a bit high. I have a 6.00% rate with HSBC that I got in December. Some of my friends who locked in after are only at 6.2% or 6.3%

Re: *** IS THIS A GOOD MTG RATE???

That seems a bit high. I would have to agree that rates are around 6.3 or 6.5.

Re: *** IS THIS A GOOD MTG RATE???

Its a bit high. We locked in at 6.125 in april.. But it also depends on your credit and other things... are you doing 100% financing, etc.

Re: *** IS THIS A GOOD MTG RATE???

I just called Suffolk County Nat'l and was quoted 6.375 on a 30 year.

Re: *** IS THIS A GOOD MTG RATE???

that's def. a bit high. We got 6.125% in Feb07 from HSBC.

Re: *** IS THIS A GOOD MTG RATE???

thats kind of high, go on bank rate to see what other banks are offering

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

update with question

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

don't know the answer to your question, but to me that sounds high based on the rates we got in april

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Since I have been on the phone with a bunch of mortgage people today maybe I can help alittle. You said you have no PMI, does that mean you are putting 20% down? Or are you doing some sort of combo to avoid PMI? If you are financing a large percentage of the purchase price this may be affecting your rate.

I would call around. Try Citibank I locked in today at 6.125 with 1 point. No points would have been 6.5. Your credit seems great so that shouldn't be an issue. Also, to lock in a rate you are going to have to pay the application fee, mine was $500 so I don't think it would be a good idea to lock in at this rate and keep searching around or you are going to have to pay additional fees.

As far as them paying those costs for you it seems good but the difference in interest rates over 30 years might not be worth it for you to pay the higher rate. You would need to know the total of those fees they are paying for you and then compare against a lower rate mortgage.

For example if the current rate puts your mortgage payments at $2400 over 30 years, your total payments would be $864,000 but if a lower rate puts your payments at $2350 then over 30 years you would payback $846,000 meaning you would pay 18,000 more with the higher rate. I don't think the fees they are covering make up that difference.

I hope this helps.

Message edited 5/22/2007 6:41:59 PM.

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

i don't think you can lock in a rate until you actually apply for the mortgage. there's usually some kind of application fee so you might not want to keep shelling out money applying for mortgages through different places. you should shop around and find out who will give you the best rate first and then start the application process. you might also want to find out if a bank will let you re-lock or float down the rate if the rate drops after you initially lock in. sometimes you can do this, but you might be charged some type of fee.

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Posted by zuzuspetals
QUESTION: If I lock in this rate and find another one can I lock that one in too? or can you only do that once? I KNOW THAT IS PROB. A VERY STUPID QUESTION!

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

Posted by mommy2Alex

Posted by MrsRivera

Posted by christina-and-mike07

Posted by mommy2Alex

Posted by christina-and-mike07

Posted by KvsGrl

It seems like it may be a little high (depending on your credit). Can you pay a point to get the rate down a bit?

hey there,

can someone tell me what this means "to pay a point"? thanks.. we're about to get pre-approved after memorial day weekend (we're going & no time to get pre-approved).

I feel like I am highjacking this thread but since no one answered your question, I will. A point = 1% of the value of your mortgage. Paying a point will reduce your interest rate. If you mortgage $388,000 and pay one point it will cost you $3880 at closing. Points are tax deductible. I paid one point and reduced my interest rate on my loan from 6.5% to 6.125%.

lol thanks for answering! ok now I know.. you ladies are so wise! If I have to then I will do this!

thanks!

Be careful with paying down your interest rate, though...because our accountant told us it's money that comes out of your pocket that really doesn't need to. In the end, you'll be spending more money in your monthly payment, BUT all of that is a tax break for you. If you pay down with points, you won't get any of that money back at the end of the year.

I am confused by this answer. If my interest rate was 6.5% my principal and interest payment was going to be $2,452 now at the lower rate it is $2,357 so it is lower The break even point for us is 3.5 years. Over 30 years we are saving just about $34,000 in interest.

Re: *** IS THIS A GOOD MTG RATE??? update with info and question

This is a great post. This is the question that I asked on another post but worded wrong.

I'm going back and forth over the point because in reality we will probably refinance within 10 years. So....If we break even in 4 years (for example) and then refinance in 5 years - was it really worth it - probably not.

It's such a hard decision. I actually locked in the product and if the rate goes down I can then get that rate without a penalty. If I decide to buy down the point then I can do that last minute.

Let's all pray the rates go back down this week.