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Company Loan Type APR Est. Pmt.

Interest Rates

Posted on: 06th Feb, 2008 02:40 pm
Can anyone tell me what the rates are looking like. I have to lock in my rate. It appears i should have done so about 2 weeks ago. I was told they went up substantially. Is this true. Does anyone forsee the rate going down a bit in the next few days?
Rates should come down a bit in the next couple days. But for now a 30 yr rate is at 5.5% and a 15 year is at 4.50%
Posted on: 06th Feb, 2008 02:43 pm
Thank you for your reply. Does that include jumbo as well. The purchase is 1,000,000 with 25% down for a loan amount of 750,000 I am not sure if the amount of the loan or amount of the down payment affect the rate at all. Initially they told me the rate was 6.6, now they told me it was 7.2 Just a week later and I keep hearing how rates are down. Except in my world!!!
Posted on: 06th Feb, 2008 02:51 pm
you can get a jumbo mortgage on a 5/1 ARM at 5.50% put for a 30 yr fixed its around 6.5%
Posted on: 06th Feb, 2008 03:01 pm
Do not solicit
Posted on: 06th Feb, 2008 03:04 pm
Daniella....

What are your credit scores? I think you are getting the run around.....and a better deal can be had....a jumbo 30 year fixed can be had for about 6.5%......When are you supposed to close?
Posted on: 07th Feb, 2008 04:21 am
Im assuming there were some soliciting posts there but assuming you are good credti wise and this is a full income documentation loan you can get a Jumbo 5yr fixed in the 5s% and 30yr fixed in the 6s%. The rest depends on alot of things that can change pricing and closing costs. Your loan officer has more info then I do so its hard to compare. With some lenders you are in Super Jumbo range 650k+ and that usually means another rate adjustment. Location might have to do something with that too.
If you not sure its always a good idea to get second oppinion.
Posted on: 07th Feb, 2008 06:40 am
Hi Daniella,

Rates have not changed much on jumbo loans over the last few weeks. When rates went down 2 weeks ago, they only went down about .25% on loans under 417K. The rates are still lower than they were a month ago. I think the company you are working with are using the rate change as an excuse to make extra money. Rates have not changed in the last week. Don't feel pressured to close with them if they are going to do this to you. Don't let that lender get away with the bait and switch. Walk away. You can do much better.

Most sellers will grant and extention on closing if needed.
Posted on: 07th Feb, 2008 08:11 am
i agree with lisa that "bait and switch" tactics are heinous. it isn't clear that this is the case here, however.

rates fluctuate on a daily basis - sometimes up, sometimes down. i think we have way too many "chicken littles" out there who think the sky is falling every time there is a little blip in rates upward.

truly, i don't see a "correction" coming in either direction. generally, mortgage rates are quite good, even for jumbo loans (though not as historically good as they used to be in comparison with conforming rates).

the time to lock a rate in is when you are confident you are getting a rate that you are comfortable with, when taking costs into consideration as well. sometimes rates go down the next day - is it worth kicking yourself? i submit "no." just as often rates go up the next day - worth gloating? again, "no."

yes, jumbo rates as of the moment range from 5's to 7's, depending on points and fees (30 year fixed rates). adjustables will reduce your rate, of course.

nevertheless, please don't get upset about missing that fraction of a point when you lock in the day after an increase. yes it is dollars and cents, but we still buy gas even when the price increases, don't we?
Posted on: 07th Feb, 2008 09:12 am
Thank you for the advice. I was able to speak to the lender and inquired why it went up. I told them I was going to delay closing and do some more comparative shopping. They then turned around and gave me my original quote rate of 6.6. I got what I wanted but I still feel upset that they tried to take the rate al the way up to 7.2
I am wondering if I should still hold out for them to drop it even more. However I am sure they have a limit.
Posted on: 07th Feb, 2008 09:13 pm
Hi Danielle,

It's good if the company has reduced the mortgage rate to 6.6%. This is in accordance with the national average rate (6.56%) on 30 year fixed jumbo loans. So, that's pretty good an offer considering the rates.

Come on, don't be upset and I feel there's no need to ask them and lower the rates further. You're right they have a limit which will certainly not go beyond that of the rates available in the market.

Regards,

Jessica.
Posted on: 08th Feb, 2008 12:00 am
you mentioned that you asked why the rate was increased, but you didn't share their answer with us, danielle.

did they actually have an explanation that made sense? i sure hope so.

as for the 6.6 - i think you're doing fine at that rate. could you do better? who knows other than God Himself? i suppose if you check with Him, you may get some additional insight.
Posted on: 08th Feb, 2008 07:36 am
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