Looking for a lender currently. Getting quotes like -
6.5% fixed with no credits
6.875% with 3K in closing.
6.99% with 5.99% for the first year (and later refi) at no cost to me.
What is the suggestion to go with? I don’t want to buy the points since rate will likely get better in times to come. Any use checking for rates with banks like Chase?
Unless you’re under contract, the rate you are being quoted means absolutely nothing. And lenders know that. They know that people like you will work with whoever tells them the most bullshit upfront rate to begin with. Find someone with a great reputation that you know will close on time and work with them.
@True
I’m so grateful to have a lender who straight up told me just because my interest rate was this today, does not mean it’ll be that tomorrow, it could be better in 7 days and worse 2 months!
What you’re seeing is pretty standard and may even be slightly better than average in some cases. Since you asked about Chase, here’s a look at rates from the top 5 banks, including Chase, as of yesterday: https://youtube.com/shorts/EjdPRWahhvY?feature=share. Once they update their rates for today, I’ll post those as well.
@Hale
Thanks pretty convenient, is Chase typically lower? Even with no relationship?
I hear not to use Rocket Mortgage. What are your takes?
Mika said:
I hear not to use Rocket Mortgage. What are your takes?
They are ok, rarely will give you the best rates though.
Tips
Use a broker who does NOT use their own funds
When shopping you literally have to get quotes within probably less than 2 hours of each other. The market has been so volatile especially lately that by the time you get to your last quote the first quote is so much different.
If you just find a mortgage broker you like stick with them. Usually a borrower shopping on their own will find someone dishonest and not know till late in transaction.
@Davin
You mean a broker who will not fund from in-house or a broker who won’t give their credits?
Derry said:
@Davin
You mean a broker who will not fund from in-house or a broker who won’t give their credits?
A broker that doesn’t use their own funds. A broker has to give credits—they literally can’t keep them because they don’t use their own money. So it’s either a discount or a credit for a rate.
A lot of companies claim they are brokers but they can use their own money too.
@Davin
What’s the risk if the broker also lends in-house?
Derry said:
@Davin
What’s the risk if the broker also lends in-house?
No risk at all, just more compliance, more overhead, and they don’t have to give you credits. It’s more optional so they can charge way more, but they are still better than a bank.
Great questions!
Brokers can shop for you. I have a lender I use preferably since it’s best priced for a traditional loan. Easy to compete if and go cheap if needed to earn business.
Ah yes, the rising rates and no-cost refi! Ask what that actually means and see chaos unfold lol.
If the answer isn’t ‘we will give you a higher rate to cover the lender costs,’ then run.
Somebody else already said it: if you’re not under contract that rate means nothing.
I’m getting 7.1% no points. 6.67% with 1.5 points. Leaning towards 7.1% and refinancing next year.
Vale said:
I’m getting 7.1% no points. 6.67% with 1.5 points. Leaning towards 7.1% and refinancing next year.
You mean you pay 1.5% of your purchase price upfront to get that lower rate of 6.67%, right?
@Derry
Yes.
https://www.northpointe.com/ take a look. The rates you listed are really close. For me, that wouldn’t matter. By the way, credit unions tend to offer lower rates as technically they’re not banks.
Pat said:
https://www.northpointe.com/ take a look. The rates you listed are really close. For me, that wouldn’t matter. By the way, credit unions tend to offer lower rates as technically they’re not banks.
So should I look for credit unions around my city or anywhere?
@Derry
That would definitely be what I would do. This is your first mortgage, correct? More times than not, credit unions and/or savings and loans will only work with your primary mortgage and also keep them in-house. Always go with local.