A client showed me a quote from a Florida broker today and asked if I could match it. I told him to take the deal and good luck.
Conventional purchase in NYC
Condo
85% LTV
Loan $743,000
Rate quoted 5.99% with a lender credit of $5750
30-year fixed loan
They also asked me to waive lender and appraisal fees. Thoughts?
I’d love to see the loan estimate. It’s hard to imagine anyone getting a 30-year conventional below 6.5% with perfect credit and a large down payment.
Raymond James is offering 5.75% for a 5/1 ARM Jumbo with a 30% down payment, which works for second-home condos. Their origination fee is $1250, and this has been available since at least June.
The problem is the condo I’m looking at is too affordable and falls under the conventional limit. Does anyone know of similar deals, or do I have to call dozens of banks again?
@Alden
I sent you a message about this.
The conforming loan limit is $766,500. Anything under that is considered conforming.
Ren said:
The conforming loan limit is $766,500. Anything under that is considered conforming.
We’re already closing loans using 2025 limits and just holding them until January.
Ren said:
The conforming loan limit is $766,500. Anything under that is considered conforming.
We’re already closing loans using 2025 limits and just holding them until January.
And what exactly is your point?
Ask them to show you a signed rate lock and confirm it’s listed as a condo, not a single-family home. The only time I’ve seen rates like that was with a builder deal. If this is from Optimum, I’ll lose it—they’ve been giving out quotes recently that look like they’re betting on rates dropping significantly in the next 30-60 days.
Classic bait and switch. Wait until they realize the condo’s HOA is on Fannie Mae’s exclusion list.
Is that an ARM? A 15- or 20-year loan? That rate seems way too low for a condo with 15% down and a lender credit that high.
Dru said:
Is that an ARM? A 15- or 20-year loan? That rate seems way too low for a condo with 15% down and a lender credit that high.
The quote is for a 30-year fixed loan.
They said it’s from a broker? The only time I’ve seen these rates is with credit unions. I don’t believe it unless the borrower is paying 1.5-2 points upfront.
Over the weekend, I got quoted 5.6% with an $18K buy-down, but rates have gone up since then.
Ziv said:
Over the weekend, I got quoted 5.6% with an $18K buy-down, but rates have gone up since then.
Was that for a condo at 85% LTV?
You should get your hands on the loan estimate to see if it’s even legit. It sounds like the borrower is asking for way too much.
A broker? Unlikely. A small credit union inventing their own rates? Possibly.
I work for a builder, and we’re currently offering 5.99% conventional (720+ credit score) with a $10,000 credit through January.
It might be real. I work in a secondary department and see odd outliers occasionally. Some deals are just wild.
Some banks will always offer competitive rates to land those high-value loans.
Amar said:
Some banks will always offer competitive rates to land those high-value loans.
It’s not a jumbo loan. It’s within the high-cost loan limit.