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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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For those who are ready to close...
be sure to have your LO recheck the rates for you a few days before you're set to close! You won't believe our story!
I asked LO to check the rates since I knew they have been dropping since we locked at 5.375. Was informed that the rate was now 5%... We chose not to pay a point for this rate... Our other option was to drop to 5.25%, pay 1/2 pt now, get that $$ back at closing and the bank gives us back an addiitonal 7/8ths of a pt on top of that 
So if you can follow that... Not only did we get a slightly lower rate (it's actually the rate we first started out with, but waited too long and the rate went up), but they are GIVING us $$$ towards closing... 
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Posted 11/19/09 8:36 AM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: For those who are ready to close...
Posted by MaZz
be sure to have your LO recheck the rates for you a few days before you're set to close! You won't believe our story!
I asked LO to check the rates since I knew they have been dropping since we locked at 5.375. Was informed that the rate was now 5%... We chose not to pay a point for this rate... Our other option was to drop to 5.25%, pay 1/2 pt now, get that $$ back at closing and the bank gives us back an addiitonal 7/8ths of a pt on top of that
So if you can follow that... Not only did we get a slightly lower rate (it's actually the rate we first started out with, but waited too long and the rate went up), but they are GIVING us $$$ towards closing...
I *thought* i was close to closing, now, it doesn't seem that way... anyway, i sort of follwed until you said you get money towards closing. how does that work??
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| Posted 11/19/09 10:09 AM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: For those who are ready to close...
Posted by rkoenke
I *thought* i was close to closing, now, it doesn't seem that way... anyway, i sort of follwed until you said you get money towards closing. how does that work??
Basically it was explained to us this way... even though we're getting a lower rate (5.375 to 5.25), we're still choosing to accept a higher rate than what is currently available (5.00)...
I cant explain it further bc it will def make no sense at all...  Our LO had to go over it about 5x with us before we got it... and even now we're still a bit 
Oh also, I think its something that hapens with FHA loans... There's some kind of excess money we now have that the bank cant just take away from us, so by law, under FHA, they have to give it back to us... They themselves cant absorb this "overage" that they now have bc of our rate change
****Very confusing I know... But bottom line... recheck your rate before closing... you might be able to get a better rate with/without paying addiitonal $$ ****
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| Posted 11/19/09 12:53 PM |
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HotAir
LIF Toddler
Member since 8/09 391 total posts
Name:
Lisa
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Re: For those who are ready to close...
I am likely going to close in the next 2 weeks. I locked in at 5% with an FHA loan. If the rate on my closing date is less can I go down to it? I'm confused.
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| Posted 11/19/09 2:37 PM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: For those who are ready to close...
Posted by HotAir
I am likely going to close in the next 2 weeks. I locked in at 5% with an FHA loan. If the rate on my closing date is less can I go down to it? I'm confused.
wow... you got the 5%...good for you! i cant see it getting much lower though... do you have the option to float down your rate or no? if you do, that means you can get a lower rate 1 time at least 2 days before closing (or around there), but you'll pay a fee to unlock your rate and float down to a better rate... usually you pay about 1 point to do that
Message edited 11/19/2009 4:19:27 PM.
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| Posted 11/19/09 4:18 PM |
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HotAir
LIF Toddler
Member since 8/09 391 total posts
Name:
Lisa
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Re: For those who are ready to close...
hmm...i don't really know if I have that option. I guess I will have to find out. I'll probably just stay at the 5...I'm pretty happy with that.
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| Posted 11/19/09 4:44 PM |
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SummerMom
Now a mom of 2!
Member since 6/07 4970 total posts
Name:
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Re: For those who are ready to close...
Posted by HotAir
I am likely going to close in the next 2 weeks. I locked in at 5% with an FHA loan. If the rate on my closing date is less can I go down to it? I'm confused.
5% on an FHA loan is amazing! Keep it and don't stress!
And to the OP: congrats on getting this money back. I feel like such a dope when it comes to this stuff, I feel like if I were in the same situation I would have let it slide and just kicked myself over it for, oh, the next 30 years. Good work. And good luck with the closing!!!!
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| Posted 11/19/09 4:51 PM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: For those who are ready to close...
Posted by DavaDay
Posted by HotAir
I am likely going to close in the next 2 weeks. I locked in at 5% with an FHA loan. If the rate on my closing date is less can I go down to it? I'm confused.
5% on an FHA loan is amazing! Keep it and don't stress!
And to the OP: congrats on getting this money back. I feel like such a dope when it comes to this stuff, I feel like if I were in the same situation I would have let it slide and just kicked myself over it for, oh, the next 30 years. Good work. And good luck with the closing!!!!
I agree... Its not going to get much better than 5 so you prob have nothing to worry about 
Dava- I take after my mom in this sense... while my dad has no clue what goes on, just like my DH
Between this $$, the MCC thing (if it ever freakin comes through), and the 8k.... god, I feel like we made out like bandits!
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| Posted 11/19/09 5:08 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: For those who are ready to close...
Posted by MaZz
Posted by rkoenke
I *thought* i was close to closing, now, it doesn't seem that way... anyway, i sort of follwed until you said you get money towards closing. how does that work??
Basically it was explained to us this way... even though we're getting a lower rate (5.375 to 5.25), we're still choosing to accept a higher rate than what is currently available (5.00)...
I cant explain it further bc it will def make no sense at all... Our LO had to go over it about 5x with us before we got it... and even now we're still a bit
What's happening is the bank re-negotated the terms of your deal regarding the interest rates with the securities out there (I forget the term the banks use who buy the mortgages).
But anyways, they are agreeing to basically drop your rate to 5%, but they are giving you a 5.25% payment schedule and you are paying negative points.
The better way to understand it, lets say a bank quotes you 5.00% to lock in today. You can choose instead to lock in at 5.25% and the bank will give you money. Negative points.
Just like if you can lock at 5.00%, but you want a lower rate, you have to buy points. total opposite.
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| Posted 11/19/09 6:18 PM |
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rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: For those who are ready to close...
Posted by ave1024
Posted by MaZz
Posted by rkoenke
I *thought* i was close to closing, now, it doesn't seem that way... anyway, i sort of follwed until you said you get money towards closing. how does that work??
Basically it was explained to us this way... even though we're getting a lower rate (5.375 to 5.25), we're still choosing to accept a higher rate than what is currently available (5.00)...
I cant explain it further bc it will def make no sense at all... Our LO had to go over it about 5x with us before we got it... and even now we're still a bit
What's happening is the bank re-negotated the terms of your deal regarding the interest rates with the securities out there (I forget the term the banks use who buy the mortgages).
But anyways, they are agreeing to basically drop your rate to 5%, but they are giving you a 5.25% payment schedule and you are paying negative points.
The better way to understand it, lets say a bank quotes you 5.00% to lock in today. You can choose instead to lock in at 5.25% and the bank will give you money. Negative points.
Just like if you can lock at 5.00%, but you want a lower rate, you have to buy points. total opposite.
Thanks Ave- this makes some sense now!
i don't think i'd be so lucky. in the beginning of this process, i would have thought luck was on my side. now, not so much.
i hope your purchase is going well. i sooo look forward to hearing your updates as you move into your home! i hope you post some deco stuff. i can't say i even saw your last house!
good luck everyone!
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| Posted 11/19/09 7:10 PM |
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