I’m quite pleased with my recent mortgage experience. I secured a mortgage at 5% with a 5.125% APR, and paid a $5,500 closing fee, no points included. My journey began when I came across an ad for a 5% mortgage rate from First Community Credit Union, which seemed too good to be true given the market rates were around 6.5%. After thorough checks to ensure it wasn’t a scam, I applied and qualified for the 5% rate program. The lender explained that the credit union keeps the loans in their portfolio, allowing them to offer rates below market level. Despite my concerns about potential bait and switch tactics, everything went smoothly, and I closed at the promised rate. This deal allowed us to afford a better home within our budget. I’m curious to hear what the experts think about this deal!
That origination fee seems high, but if it’s included in your APR and still comes out over 1% lower than other options, you’ve made a great deal!
Milan said:
That origination fee seems high, but if it’s included in your APR and still comes out over 1% lower than other options, you’ve made a great deal!
Thanks for the feedback. The fee was indeed steep, but considering it in the APR context, it seemed justifiable compared to other market options.
@Asa
Definitely, you’re still ahead financially with this deal!
Essentially, they’ve rolled points into an origination fee. It’s just packaged differently, but still a solid deal.
Daryl said:
Essentially, they’ve rolled points into an origination fee. It’s just packaged differently, but still a solid deal.
Regardless, that’s an excellent rate given current market conditions.
Daryl said:
Essentially, they’ve rolled points into an origination fee. It’s just packaged differently, but still a solid deal.
I agree, it still feels like a win for us.
Credit unions often have great deals like this. With a 1% origination fee on a $550k loan, that’s quite competitive. What was the down payment requirement?
Blake said:
Credit unions often have great deals like this. With a 1% origination fee on a $550k loan, that’s quite competitive. What was the down payment requirement?
We put down a significant amount due to equity from a previous home sale, but I believe the minimum down payment required was around 20%.
@Asa
That’s fantastic! You’ve got yourself a great deal indeed.
That’s impressive. I managed a 4.5% rate by making two companies compete, but had to settle for a 15-year mortgage, which bumped up my monthly payments due to a high origination fee. Your deal sounds better by comparison.