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It's been discussed a million times before but....

K

krunchykrome

Lifer
We are scheduled to settle on our house in less than a month. It's time to start locking in a rate. Last week, interest rates were 6.5%. I called today, and they're at 7%. I'm considering locking in tomorrow.

BTW, this is a 30yr fixed FHA
 
Originally posted by: krunchykrome
We are scheduled to settle on our house in less than a month. It's time to start locking in a rate. Last week, interest rates were 6.5%. I called today, and they're at 7%. I'm considering locking in tomorrow.

BTW, this is a 30yr fixed FHA
Click to expand...


Rates took a HUGE hit this week. I have 6 files ready for docs but i'm not locking due to poor rebate. The general thinking is that it should get better by Thursday, but we shall see.
 
Originally posted by: Aharami
Originally posted by: Ocguy31
Rates took a HUGE hit this week.
Click to expand...
not according to bankrate
Click to expand...

That graph is pretty much a joke, and doesnt take into account retail V wholesale, secondary marketing.

Plus you have 2 people in here who are actually dealing with loans saying otherwise.
 
Originally posted by: Ocguy31
Originally posted by: Aharami
Originally posted by: Ocguy31
Rates took a HUGE hit this week.
Click to expand...
not according to bankrate
Click to expand...

That graph is pretty much a joke, and doesnt take into account retail V wholesale, secondary marketing.

Plus you have 2 people in here who are actually dealing with loans saying otherwise.
Click to expand...

if you dont mind me asking, what exactly do you do?

and why exactly do you predict rates will drop this week?
 
If I remember, are you forced to finance thru the developer's bank? How long can you lock a rate for? Is the close date a definite?

Rates were 3/4-1 point lower last week. Should have locked with the huge volatility in the market.
 
Originally posted by: Capt Caveman
If I remember, are you forced to finance thru the developer's bank? How long can you lock a rate for? Is the close date a definite?

Rates were 3/4-1 point lower last week. Should have locked with the huge volatility in the market.
Click to expand...

yes, we're financing through the developer's mortgage company which is NVR Mortgage. We're scheduled to settle on Nov 11th and we have to lock in a rate within 10 days of that date.

I just spoke to my fiancee; I think we may lock tomorrow morning at 7%. I projected the mortgage at various rates up to 8.5% just to have an idea on the impact that those possibilities would have on us. We're in good shape; the price of the house was well under what we could afford, and the fluxuations in interest rates won't hurt us. Obivously, I want the best rate I can get. I'd rather lock in 7% and have the rate drop than for the rate to go up to 7.5%+; I'd be kicking myself if that happened.

I was just surprised when the guy told me 7%; I yelled at him and said "well what was the damn rate last week when you didnt return my email" :laugh:

This was a risk we accepted when we purchased the new home. I can't complain now.
 
10 day lock? All of the mortgages I've received had 30-90 day rate locks. Wow, you really got taken advantage by this developer.

Did you ever get a home inspection clause put in so that you have the opportunity to pull out of the deal if there's something wrong and get your deposit back?

You so needed a lawyer to protect your rights.
 
Originally posted by: MikeyLSU
wow, so glad I got locked in at 5.25% 3 years ago for my house.
Click to expand...

you're going to make me throwup

We have friends who bought houses last year. When they tell me their rates are 5.5%, I want to scream.
 
Originally posted by: Capt Caveman
10 day lock? All of the mortgages I've received had 30-90 day rate locks.
Click to expand...

Um, no. The longer the lock, the higher the rate. You want to lock for the least amount of time possible.
 
Originally posted by: Capt Caveman
10 day lock? All of the mortgages I've received had 30-90 day rate locks. Wow, you really got taken advantage by this developer.

Did you ever get a home inspection clause put in so that you have the opportunity to pull out of the deal if there's something wrong?

You so needed a lawyer to protect your rights.
Click to expand...

wait, im sorry, I think you misunderstood me. We can lock anytime within 45 days as long as it's at least 10 days before settlement

Our contract includes warranties, and holds them liable if anything is wrong with the house. And we also have a final walkthough with the project manager. I think it would be a good idea to hire an independent home inspector to come with us as well. They also signed an agreement to immedietly fix anything upon moving in, including dings and dents from furniture. I was never worried about issues with the house itself because I read the entire contract when we signed and I was comfortable with it.

The thing I was always uncomfortable with and that I never liked since the begining was the fact that we had no date of completion set in stone, and until that date was given, we could not lock in a rate. My fear was that they could essentially wait as long as they wanted, years if they wanted, and we could not lock in a rate until then. We had no recourse if that was the case; I argued my point until they couldn't stand me anymore but that was their firm policy and if we wanted the house, we had to accept that risk. It's not an issue now though.
 
Originally posted by: krunchykrome
Originally posted by: Ocguy31
Originally posted by: Aharami
Originally posted by: Ocguy31
Rates took a HUGE hit this week.
Click to expand...
not according to bankrate
Click to expand...

That graph is pretty much a joke, and doesnt take into account retail V wholesale, secondary marketing.

Plus you have 2 people in here who are actually dealing with loans saying otherwise.
Click to expand...

if you dont mind me asking, what exactly do you do?

and why exactly do you predict rates will drop this week?
Click to expand...


I process the loans. Basically the dumbass loan officer gets you to sign the dotted line, and I convince the people with the $$$ to actually lend it to you.
 
Originally posted by: Ocguy31
Originally posted by: krunchykrome
Originally posted by: Ocguy31
Originally posted by: Aharami
Originally posted by: Ocguy31
Rates took a HUGE hit this week.
Click to expand...
not according to bankrate
Click to expand...

That graph is pretty much a joke, and doesnt take into account retail V wholesale, secondary marketing.

Plus you have 2 people in here who are actually dealing with loans saying otherwise.
Click to expand...

if you dont mind me asking, what exactly do you do?

and why exactly do you predict rates will drop this week?
Click to expand...


I process the loans. Basically the dumbass loan officer gets you to sign the dotted line, and I convince the people with the $$$ to actually lend it to you.
Click to expand...

can you check on our mortgage status please? 🙂
 
Originally posted by: krunchykrome
Originally posted by: Ocguy31
Originally posted by: krunchykrome
Originally posted by: Ocguy31
Originally posted by: Aharami
Originally posted by: Ocguy31
Rates took a HUGE hit this week.
Click to expand...
not according to bankrate
Click to expand...

That graph is pretty much a joke, and doesnt take into account retail V wholesale, secondary marketing.

Plus you have 2 people in here who are actually dealing with loans saying otherwise.
Click to expand...

if you dont mind me asking, what exactly do you do?

and why exactly do you predict rates will drop this week?
Click to expand...


I process the loans. Basically the dumbass loan officer gets you to sign the dotted line, and I convince the people with the $$$ to actually lend it to you.
Click to expand...

can you check on our mortgage status please? 🙂
Click to expand...


LOL. Give them some time. FHA loans are a huge pain in the ass to get done, especially if you go the 3% down route. I absolutely dread FHA loans. Luckily I live in CA where almost nobody qualifies for them, but that is changing.
 
Originally posted by: Ocguy31
Originally posted by: Capt Caveman
10 day lock? All of the mortgages I've received had 30-90 day rate locks.
Click to expand...

Um, no. The longer the lock, the higher the rate. You want to lock for the least amount of time possible.
Click to expand...

With Chase, I was given a 90 day rate lock. No option for a lower rate with a shorter rate lock. I also had the opportunity after that 90 day rate lock to extend it for an additional 30 days for .25 points per 30 days up to 90 additional days.
 
Originally posted by: Capt Caveman
Originally posted by: Ocguy31
Originally posted by: Capt Caveman
10 day lock? All of the mortgages I've received had 30-90 day rate locks.
Click to expand...

Um, no. The longer the lock, the higher the rate. You want to lock for the least amount of time possible.
Click to expand...

With Chase, I was given a 90 day rate lock. No option for a lower rate with a shorter rate lock. I also had the opportunity after that 90 day rate lock to extend it for an additional 30 days for .25 points per 30 days up to 90 additional days.
Click to expand...

What they give you the option to do, and what is actually possible, are two totally different things. That being said, a 90 day rate lock is a nice incentive that someone had to pay for if it wasnt you.
 
Originally posted by: AkumaX
Originally posted by: krunchykrome
Originally posted by: AkumaX
5% in jan 07 🙂
Click to expand...

jesus joseph mary
Click to expand...

we had good credit 🙂
Click to expand...

ahhaha, you jerk

the thing that really irritated me was that my fiancee and I have stellar credit. I have something like a 770 and she's 800+. We have zero credit card debt. And we both have great jobs. It was my assumption that we were prime candidates for a mortgage and the lender even assured us that given our situation, we would have zero problems.

The thing about the FHA rate is that 6.5% was the lowest they could go for anyone, and people with bad credit, debt, etc would receive a higher rate

We were dissapointed because we've done well for ourselves and it was still possible someone with not as good "attributes" could essentially receive the same rate as us
 
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