interest rates

snowprincess805 Posted: Feb 27, 2006 04:40 PM

interest rates

I am just wondering what rates others are getting for mortgage rates around now

our best so far is 6.25% for a 30 year fixed no points for a jumbo loan

Blu-ize Posted: Feb 27, 2006 04:55 PM

Re: interest rates

Did you get a good faith estimate on that quote? The reason I ask is that there could be origination fees that could help knock the rate down. You don't really want to pay origination fees.

I think it's a good rate for a jumbo loan.

csorisi Posted: Mar 06, 2006 04:09 PM

Re: interest rates

Ours is locked in at 6.75 no points--I didn't want to buy down the rate. that is for our first mortgage our second is 5% also no points.

riniko Posted: Mar 06, 2006 04:42 PM

Re: interest rates

Excuse my ignorance what is a jumbo loan?

What does it mean to buy down the rate?

What is a point?

snowprincess805 Posted: Mar 06, 2006 06:00 PM

Re: interest rates

a jumbo loan is 417,000 - it is considered higher risk because of size

points- you pay a percentage of the mortgage at closing for a lower interest rate usually 1 point=1%
but can be in 1/4 and 1/2 point increments

riniko Posted: Mar 06, 2006 06:57 PM

Re: interest rates

Thanks for the response. One thing that puzzles me is: Why would you pay points at closing rather than just putting that money towards a down payment?

How is paying points good?

csorisi Posted: Mar 06, 2006 07:03 PM

Re: interest rates

Paying points is only good if you dont' plan to refinance for the first few years it is usually 4 years. The reason people pay 'points' is to buy down the rate (it is really prepaying interest on your mortgage). If you need the money to do repairs or for other things or plan to refinance in a short period of time or don't plan to stay in the house then paying points isn't worth it. Also the points you pay are tax deductible.

tjspidur1 Posted: Mar 07, 2006 09:17 AM

Re: interest rates

That actually sounds pretty good (hubby is mortgage broker). Keep shopping around though b/c if you have good credit you can get it lower. Just had friends get 5.9 on a jumbo.

Good luck!

kaklesmay Posted: Mar 07, 2006 10:39 AM

Re: interest rates

6.0%
7.0% for HELOC

DjPiLL Posted: Mar 07, 2006 12:47 PM

Re: interest rates

It only makes sense to pay points if you plan on living in the house and never refinancing for at least 5-7 years.

DjPiLL Posted: Mar 07, 2006 12:50 PM

Re: interest rates

You should have no problems getting a 6% mortgage right now. 30yr fixed 0 points.

Jumbo... probably about 6.25 - 6.375%.

And this is with the recent rate increases today and yesterday.

sophie78 Posted: Mar 07, 2006 01:06 PM

Re: interest rates

Whoa...interest rates really increased. We paid 5.25 when we closed in Dec. of 2004. We are looking to buy a large house now. I figured we could get something around 5.8. I did not realize we were already into the 6+%.

DjPiLL Posted: Mar 07, 2006 01:32 PM

Re: interest rates

Posted by am470

Whoa...interest rates really increased. We paid 5.25 when we closed in Dec. of 2004. We are looking to buy a large house now. I figured we could get something around 5.8. I did not realize we were already into the 6+%.

5.875% might be reachable for a conventional loan if you get luckty. But thats unlikely on a jumbo unless the rates tank a quarter of a point by the time you are ready to lock.

riniko Posted: Mar 07, 2006 02:13 PM

Re: interest rates

How long can an interest rate be locked in for?

Do you have to pay to have it locked in for a few months?

RikkisDad Posted: Mar 07, 2006 02:59 PM

Re: interest rates

Normally you can lock for 30 days....the bank I work for will lock for 45 days, however if you do not let the rep put the loan through that day, your Good Faith Estimate is as good as garbage because chances are that rate or points is no longer good, since they vary daily...

I.E.

6.5 is 0 pts

6.375 is .5pts TODAY

TOMMORROW it can look like this

6.5 is 0 pts

6.375 is .75 pts

Sometimes the rates don't change but the origination fee (points) does...

FYI...If you buydown by paying points a rate with a bank you will get a lower rate....brokers oftentimes will bank your points in their pockets

If brokers don't charge points chances are they aren't going to get paid, and what broker wants to do loans without getting paid?

DjPiLL Posted: Mar 07, 2006 03:02 PM

Re: interest rates

Lock rates are negotiable.

Don't let a bank tell you they can't give you a longer rate lock.

I have successfully had banks lock me for as long as 90 days with NO additional charge.

RikkisDad Posted: Mar 07, 2006 03:07 PM

Re: interest rates

Somebody is paying for that lock @ 90 days, obviously not you or any borrower, chances are the branch had to absorb that lock, and just told you know that you didn't have to pay for it.

DjPiLL Posted: Mar 07, 2006 03:26 PM

Re: interest rates

Posted by RikkisDad

Somebody is paying for that lock @ 90 days, obviously not you or any borrower, chances are the branch had to absorb that lock, and just told you know that you didn't have to pay for it.

Frankly I don't care who pays for it. I am sure somebody had to pay for it because the banks have to buy these loans and products from the market so they must be paid for.

All i know it wasn't paid by me and thats what ultimately matters in the end.

Blu-ize Posted: Mar 07, 2006 03:28 PM

Re: interest rates

Posted by DjPiLL

Posted by RikkisDad

Somebody is paying for that lock @ 90 days, obviously not you or any borrower, chances are the branch had to absorb that lock, and just told you know that you didn't have to pay for it.

Frankly I don't care who pays for it. I am sure somebody had to pay for it because the banks have to buy these loans and products from the market so they must be paid for.

All i know it wasn't paid by me and thats what ultimately matters in the end.

I agree with this. I locked for 90 days. I am paying no points no origination fees for the lock. It's part of the program with my bank.

lrs2005 Posted: Mar 07, 2006 04:42 PM

Re: interest rates

We were able to lock in our rate this summer for 60 days and then got it extended for another 30 days. We did not have to pay to lock in the rate. This summer we got and have a 5.125% 30 year fixed mortgage.

Since I liked to look at the rates when we were looking for homes, I noticed that there is a trend to rates. The rates go down the day or so before a big housing report is due. You can see it in the little box that Newsday puts on its website. Two days ago, the rate for a 30 year fixed was 5.88, but today the rate is 5.94. So it pays to stay on top of the rates when you are looking. If they go down call the mortgage co and get a new rate and re lock it.

ETA: The rates that Newsday publishes are the rates that banks get and normally not the same rates that people can get. Your rate will be effected by your credit score, how much you can put down and a number of other things.