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Mortgage Lender Question (1 Viewer)

The Noid

Avoid me!
I have a house being built that will be done in December. If I go with a lender now that will lock me for a year (with one free float down) at 6.375% for 1 point that is credited at settlement, what happens if in November their lowest rate is still .5 point higher than other lenders and I want to bail?

How much am I out? The application fee? The point? Both? Or do I not have a choice, there's no way out?

 

The Noid

Avoid me!
I have a house being built that will be done in December. If I go with a lender now that will lock me for a year (with one free float down) at 6.375% for 1 point that is credited at settlement, what happens if in November their lowest rate is still .5 point higher than other lenders and I want to bail?

How much am I out? The application fee? The point? Both? Or do I not have a choice, there's no way out?
You're going to have to rephrase this question in the form of english. What's going on here? If you lock in for a year, wouldn't the rate be the same? Or are you wondering if rates go down can you bail?
Yes, I thought that's how I presented it.
 

The_Man

Footballguy
Is it really possible to get a fixed 30-year at 5.875 right now?

I'm settling on a house at the end of July and haven't locked my rate yet, but was hearing that rates are around 6.35. Any my FICO is 760 (though my wife's is only like 735).

Proninja, what are you offering for rates right now?

 

uwgb96

Footballguy
Is it really possible to get a fixed 30-year at 5.875 right now?

I'm settling on a house at the end of July and haven't locked my rate yet, but was hearing that rates are around 6.35. Any my FICO is 760 (though my wife's is only like 735).
That's about where we're at in Wisconsin. 6.25-6.375BTW, your 760 doesn't matter if your wife is 735. They take the lower of the two.

 
I've got a HELIOC 2nd Mortgage that I'd like to move to a fixed rate. Am I going to be able to manage this with minimal closing costs?

 
I've got a HELIOC 2nd Mortgage that I'd like to move to a fixed rate.  Am I going to be able to manage this with minimal closing costs?
Yes. You should be able to do it with no closing costs. Shoulda done it a year ago. ;)
We haven't even had it for a year. Our mortgage guy ####ed us up the ###. Want to hook me up ninja or do you strictly do in state?
 
I've got a HELIOC 2nd Mortgage that I'd like to move to a fixed rate.  Am I going to be able to manage this with minimal closing costs?
Yes. You should be able to do it with no closing costs. Shoulda done it a year ago. ;)
We haven't even had it for a year. Our mortgage guy ####ed us up the ###. Want to hook me up ninja or do you strictly do in state?
Washington, Oregon, Idaho, GB.My advice? Go to a bank - most brokers don't like doing 2nd's, and aren't very good at them.
Flagstar is the one that ####ed us in the first place. :angry:
 
I've got a HELIOC 2nd Mortgage that I'd like to move to a fixed rate.  Am I going to be able to manage this with minimal closing costs?
Yes. You should be able to do it with no closing costs. Shoulda done it a year ago. ;)
We haven't even had it for a year. Our mortgage guy ####ed us up the ###. Want to hook me up ninja or do you strictly do in state?
Washington, Oregon, Idaho, GB.My advice? Go to a bank - most brokers don't like doing 2nd's, and aren't very good at them.
Flagstar is the one that ####ed us in the first place. :angry:
Go to a different bank then. ;)
Thanks, you've been hepful. Get your Michigan license already. :rant:
 

The Noid

Avoid me!
I have a house being built that will be done in December. If I go with a lender now that will lock me for a year (with one free float down) at 6.375% for 1 point that is credited at settlement, what happens if in November their lowest rate is still .5 point higher than other lenders and I want to bail?

How much am I out? The application fee? The point? Both? Or do I not have a choice, there's no way out?
You're going to have to rephrase this question in the form of english. What's going on here? If you lock in for a year, wouldn't the rate be the same? Or are you wondering if rates go down can you bail?
Yes, I thought that's how I presented it.
Ok, so let me get this straight.You're paying one point to lock in at 6.375%. You're paying that point out of pocket, right now, along with an application fee. 6.375% is .5% higher than you can get right now - which means you can get a 30 year fixed at 5.875%.

You're wondering, if rates stay the same as they are now, if you can leave that point/application fee on the table and move to a lender that has a 5.875% rate.

Yes, you can.

What about that free float down?
Right, but do I get that up-front point back from this lender?The free-float down does me no good if the lender's lowest rate is always .5 point higher than the lowest out there, right?

My dilema is most of the 6% and below rates for 30/years are all 60 day locks or less. My closing is 8-9 months away. I was looking for a way to lock now at a decent rate just in case rates are 7%+ or something by then, but if they are much lower still be able to take advanatage. Problem is, the lenders that will give me the 12 month locks are all about .5 or more higher on their rates, even for 60 day closings.

Does that make sense?

 

hobbes4

Footballguy
I have a house being built that will be done in December. If I go with a lender now that will lock me for a year (with one free float down) at 6.375% for 1 point that is credited at settlement, what happens if in November their lowest rate is still .5 point higher than other lenders and I want to bail?

How much am I out? The application fee? The point? Both? Or do I not have a choice, there's no way out?
You're going to have to rephrase this question in the form of english. What's going on here? If you lock in for a year, wouldn't the rate be the same? Or are you wondering if rates go down can you bail?
Yes, I thought that's how I presented it.
Ok, so let me get this straight.You're paying one point to lock in at 6.375%. You're paying that point out of pocket, right now, along with an application fee. 6.375% is .5% higher than you can get right now - which means you can get a 30 year fixed at 5.875%.

You're wondering, if rates stay the same as they are now, if you can leave that point/application fee on the table and move to a lender that has a 5.875% rate.

Yes, you can.

What about that free float down?
Right, but do I get that up-front point back from this lender?The free-float down does me no good if the lender's lowest rate is always .5 point higher than the lowest out there, right?

My dilema is most of the 6% and below rates for 30/years are all 60 day locks or less. My closing is 8-9 months away. I was looking for a way to lock now at a decent rate just in case rates are 7%+ or something by then, but if they are much lower still be able to take advanatage. Problem is, the lenders that will give me the 12 month locks are all about .5 or more higher on their rates, even for 60 day closings.

Does that make sense?
The reason they take the 1 percent up front is to keep it if you do not close with them. 6 3/8 is a great rate to lock for a year with only 1 point. I am locking 6 months for 6.625 with the 1 in LA. 6.375 is for 60 days only right now(but they may drop a little over the next 15-30 days...)
 

Joe T

Footballguy
Is it really possible to get a fixed 30-year at 5.875 right now?

I'm settling on a house at the end of July and haven't locked my rate yet, but was hearing that rates are around 6.35. Any my FICO is 760 (though my wife's is only like 735).
That's about where we're at in Wisconsin. 6.25-6.375BTW, your 760 doesn't matter if your wife is 735. They take the lower of the two.
WTF???How is this possible?

 

The Noid

Avoid me!
I have a house being built that will be done in December. If I go with a lender now that will lock me for a year (with one free float down) at 6.375% for 1 point that is credited at settlement, what happens if in November their lowest rate is still .5 point higher than other lenders and I want to bail?

How much am I out? The application fee? The point? Both? Or do I not have a choice, there's no way out?
You're going to have to rephrase this question in the form of english. What's going on here? If you lock in for a year, wouldn't the rate be the same? Or are you wondering if rates go down can you bail?
Yes, I thought that's how I presented it.
Ok, so let me get this straight.You're paying one point to lock in at 6.375%. You're paying that point out of pocket, right now, along with an application fee. 6.375% is .5% higher than you can get right now - which means you can get a 30 year fixed at 5.875%.

You're wondering, if rates stay the same as they are now, if you can leave that point/application fee on the table and move to a lender that has a 5.875% rate.

Yes, you can.

What about that free float down?
Right, but do I get that up-front point back from this lender?The free-float down does me no good if the lender's lowest rate is always .5 point higher than the lowest out there, right?

My dilema is most of the 6% and below rates for 30/years are all 60 day locks or less. My closing is 8-9 months away. I was looking for a way to lock now at a decent rate just in case rates are 7%+ or something by then, but if they are much lower still be able to take advanatage. Problem is, the lenders that will give me the 12 month locks are all about .5 or more higher on their rates, even for 60 day closings.

Does that make sense?
The reason they take the 1 percent up front is to keep it if you do not close with them. 6 3/8 is a great rate to lock for a year with only 1 point. I am locking 6 months for 6.625 with the 1 in LA. 6.375 is for 60 days only right now(but they may drop a little over the next 15-30 days...)
I figured, but just wanted to know for sure. I know it's a good deal, especially since I get that point credited toward my closing costs, or I can use it to knock the rate down a bit more.

Thanks!

 

The Noid

Avoid me!
I figured, but just wanted to know for sure.

I know it's a good deal, especially since I get that point credited toward my closing costs, or I can use it to knock the rate down a bit more.

Thanks!
Shoot. Since you can use that point to buy down the rate, the real current rate isn't 6.375%, it's whatever the rate is buying it down a point from 6.375% then. That's not a bad deal at all.
True, but I'll probably use the 4k to knock 1/3 off the closing costs instead of saving the 30 dollars a month on my payment. I figure I'll wind up re-financing sometime in the next 5 years anyway!
 

ffjunk

Footballguy
I've got a HELIOC 2nd Mortgage that I'd like to move to a fixed rate.  Am I going to be able to manage this with minimal closing costs?
Yes. You should be able to do it with no closing costs. Shoulda done it a year ago. ;)
We haven't even had it for a year. Our mortgage guy ####ed us up the ###. Want to hook me up ninja or do you strictly do in state?
Washington, Oregon, Idaho, GB.My advice? Go to a bank - most brokers don't like doing 2nd's, and aren't very good at them.
Flagstar is the one that ####ed us in the first place. :angry:
Just got a home equity loan fixed at 6.59% no closing costs through Citibank. Unfortunately for me it's a 30 yr. so rates might even be lower for less yrs.
 

jon_mx

Footballguy
I have a house being built that will be done in December. If I go with a lender now that will lock me for a year (with one free float down) at 6.375% for 1 point that is credited at settlement, what happens if in November their lowest rate is still .5 point higher than other lenders and I want to bail?

How much am I out? The application fee? The point? Both? Or do I not have a choice, there's no way out?
Don't do it. The market will crash in two years and you will not be able to recoup your investment until at least 2013.

 

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