Mortgage Rates

Anyone going through the pre-approval process right now or been through it recently?

What banks did you find had the best rates and easiest process?

We just faxed in all the paperwork for citibank, but the loan officer has been MIA so we're looking for other banks to try...

PS: If this post/question sounds absolutely idiotic, its bc we have no freakin clue what we're doing LOL

TIA ladies!

ETA: Can someone also explain what "points" are?

Message edited 9/9/2009 2:47:23 PM.

Re: Mortgage Rates

We are actually meeting with a broker on saturday to obtain a mortgage. We signed a contract and hopefully by saturday will know if the sellers signed it and if it was approved by their bank. It's a short sale. We are hoping to get an FHA loan which means that we won't have to put down 20% (only have to put down 3.5%).

Basically, I have been told that there are some mortgages that let you buy points. From what I understand, let's say you get approved for 6% interest but you want to pay 5%....some mortgages will allow you to buy a point off of it (for maybe let's say $2500) so that your interest rate will be lower. I hope that makes sense and I hope I'm correct. The whole thing is rather confusing.

Re: Mortgage Rates

We have been working with someone from Continental Home Loans. They particpate in the mortgage tax credit program. He has been awesome. Feel free to FM if you want his info.

Re: Mortgage Rates

We used Bank of America and got an amazing rate, 4.375% (but this was back in June). We had a really great experience with them so maybe you could check them out.

Points, I can't really explain. I think we bought a 1/4 point. In essence you are paying a lump sum to lower your interest rate. It works for them because they get their money up front. When deciding on whether to buy points, you need to compare your original rate with the new rate and figure out how long it would take you to break even and begin to benefit from having bought x number of points. If you don't plan on staying in your home at least that long, then it doesn't really make sense. I probably just confused you more.

Re: Mortgage Rates

We bough in March and found that going directly through the bank was easier and cheaper. We used Astoria federal and they were great to work with!

Re: Mortgage Rates

Re: Mortgage Rates

we're working with Bethpage. they are great!! they also have the lowest bank closing fees around. everyone I know that has used them, loved them to

Re: Mortgage Rates

are you in contract yet? you can't lock in a rate with a bank or mortgage broker until you have a signed contract to purchase the home....

you can still look around to see who you want to go with for a mortgage but nobody will be able to guarantee you a rate until you are actually in the process of buying the home....it might take you a month or longer to find a house you like and to get into contract with the seller and during that time rates will fluctuate....

the rate we locked a few weks before we closed was 5.375 - the week after we locked rates were up around 5.5-5.6 - a week after we closed rates were lower than 5.375....that's just an example of how the rates can change...

you can pay upfront to lower the rate (buying points) but you have to figure out if it is worth it in the long run for you to pay upfront.....for us to pay $2,500 upfront to save $20 a month in our mortgage wouldn't be worth it if we lived in the house less than 10 years (i think if i did the math correctly )

Re: Mortgage Rates

Best advice? Shop...

I work for a reputable Mortgage Broker...sometimes we can beat the bank directly, sometimes we can't...

As for points, as a pp said, you need to determine if it is worth it...sometimes you can get a big enough rate reduction (plus the tax deductability of the points) that it is worth it...sometimes not...

Re: Mortgage Rates

Rates are freakin' fantastic right now. Back down to 5.00%.

Call around and get some quotes. Look on bankrate.com for some local broker/bank recommendations.

Re: Mortgage Rates

We are using Wells Fargo.

A point = 1% of your loan amount. You can "buy your rate down" by paying a loan officer certain amounts of points. However, you have to see if its worth it for you.

Good Luck!

Re: Mortgage Rates

you can get pre-approved anywhere. You can't get a rate lock-in until you are in contract. We got our pre-approval from Bethpage FCU since we have a joint account there and it was easy.

For the actual mortgage, we are using a friend of a friend as a mortgage broker. He got us a great rate through Wells Fargo and we locked in the other day.