Shopping for a mortgage

[Brock Landers]

It definitely could. Treasury rates lately have bumped up on news of the vaccine. But more recently covid returning broadly in China and the seemingly bumpy rollout of the vaccine leaves some room and reason for a drop in Treasuries. Who knows though.

The other half of it is the spread between mtg and tsy rates. They were pretty wide going into covid and have come down steadily since. Good for borrowers. So there’s another bullet in the “lower mortgage” rates theory. Treasuries possibly coming down, bringing a tailwind to mtg rates. And the second piece being mortgage rates specifically coming down independent of treasuries.

I’d roll the dice and wait 1-2 months then have the lock up period but that is a dice roll. 2.625 pretty good for a 30 (3.75 was pretty good 18 months ago too).

[californiagrown]

They’ll probably start with the last 60-90 days worth of comps in your complex and similar condos in your area. Give them your info in the special assessment ahead of time.

Yeah ok. The redfin/zillow estimates are +50k higher than than the sale prices so the appraiser will know I'm not Basing. But, I'm not sure that really matters as the value can't take into account 1-2 months from now when the assessment is paid, let alone 18 months from now when the complex's renovation is complete.

Bummer. If my condo is appraised for the zillow/redfin estimate then my new monthly payment is $100 less than current and I'm taking $50k cash out 4 years into ownership. If it appraises per the recent comps (which took into account the special assessment), I can't take any cash out to help pay for the assessment.

[liv2ski]

^^^^^ Sorry to hear that. One of the many reasons I hate condos.

[Garbowski]

Just locked today in WA, found them on Zillow. 30 year at 2.5% with $3200 in credit. Is Amrock still the best as far as closing fees to shop for? He mentioned some disaster certification fee that I never heard of... is that legit? He said it would only be a couple hundred but I never paid it before.

[liv2ski]

^^^^Yup, I locked a Hi Balance loan for a guy at 2.50% yesterday with a $3k credit and conforming usually prices a little better for low ltv, high fico, owner occ, no cash out quotes. So shop around youz guyz.

[fool]

Seeing people getting 2.375% quotes for a 30 year mortgage. Is it typical that an investment property/2nd home would be quoted a full point higher? I'm about to lock in 3.375% w/ 25% down for a townhome we just put under contract.

Unsure on second home, but a full point higher for a investment property seems a bit high. I just got 2.875%, 30 year for my CO investment property - FWIW - but obviously a lot depends on credit, LTV, etc.

Edit: it was a re-fi for my 2.875%.


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[liv2ski]

Unsure on second home, but a full point higher for a investment property seems a bit high. I just got 2.875%, 30 year for my CO investment property - FWIW - but obviously a lot depends on credit, LTV, etc.


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Yup did a N/O/O loan at 2.625% with a $2,500 credit to costs, but high fico and low ltv.

[406]

Prior to signing loan disclosures and underwriting, how much of a hassle is it to bail on a mortgage advisor? Basically we got the loan estimate paper work around the same time as we got a significantly better estimate paper work. Already signed everything with the better estimate, but it seems too good to be true...1.99%, no appraisal, ~$1500 closing cost. Located in San Diego.

[Bronco]

I'd just tell your current advisor what the new quote is and that if they can't match it, so sorry!

[Danno]

I think that when you bail from a locked loan, you may be liable for certain costs already incurred, like an appraisal, but otherwise you are free to bail. At least that's my understanding (and I did bail once when the first guy couldn't come close to what another broker was offering).

Whether you think that is ok from some "good faith" belief is up to you. But generally speaking, loans are fungible products that cost a shit ton. If the difference is big, I don't see an issue with bailing (as Bronco suggests, you can soothe your conscience by giving the current guy the opportunity to match).

[406]

Good to know, thanks guys.
Yeah, gave them the new quote and reply was "nobody is doing those rates right now, impossible to match". The better rate company seems legit, looked them up on BBB and all good reviews online and they plan to service loan. Just seems odd to me there is such a big difference, .375% and 2x closing costs.

[Danno]

Good to know, thanks guys.
Yeah, gave them the new quote and reply was "nobody is doing those rates right now, impossible to match". The better rate company seems legit, looked them up on BBB and all good reviews online and they plan to service loan. Just seems odd to me there is such a big difference, .375% and 2x closing costs.

I got told the same thing once when I asked a guy to match; insisted that the rate I was quoted must be a bait and switch, and that when I went to lock it, it would vaporize. A couple of weeks later (after I had locked) he sent me an email, apologizing, saying there was one bank offering some discount pricing that he wasn't aware of. IOW, just because this guy says it can't be done doesn't mean he's right.

[sirbumpsalot]

Good to know, thanks guys.
Yeah, gave them the new quote and reply was "nobody is doing those rates right now, impossible to match". The better rate company seems legit, looked them up on BBB and all good reviews online and they plan to service loan. Just seems odd to me there is such a big difference, .375% and 2x closing costs.

1.99% I assume you are talking about a 15yr loan? Cause if its a 30yr yeah sounds too good to be true.

[406]

10 year, we have 11 years to go on the current 15. Should be about same payment and and save ~35k in interest over life of loan. I get the logic/math that some up thread that you might make more money dumping into the S&P and have a longer loan, but I like a more sure option to retire early.

[mooseknuckle]

1.99 on a 15 yr in yr 2 of a refi to 20 yrs. Saves about $50k in interest over term and costs $200 more a month. Winning! These rates are so absurd.

[doebedoe]

Thanks for all the advice in this thread.

After getting quotes from numerous brokers, my current bank, my current mortgage holder -- nothing could match my local credit union.

2.625% on a 30 year cash-out with a total of $1200 of closing costs. Good credit, but not a particularly low LTV after cash out (~70%), and didn't have to buy any points. They did a walk through appraisal but waived the fee. Took about 3 weeks from lock to close and was a painless process.

Dropped a point and a half off our previous rate, got us out of PMI, and now we can pay off all the old high interest medical and private student loan debt.

[Name Redacted]

Thanks for all the advice in this thread.

After getting quotes from numerous brokers, my current bank, my current mortgage holder -- nothing could match my local credit union.

2.625% on a 30 year cash-out with a total of $1200 of closing costs. Good credit, but not a particularly low LTV after cash out (~70%), and didn't have to buy any points. They did a walk through appraisal but waived the fee. Took about 3 weeks from lock to close and was a painless process.

Dropped a point and a half off our previous rate, got us out of PMI, and now we can pay off all the old high interest medical and private student loan debt.

That's about as good as it gets. Nice to be able to go with the local CU. I have yet to be able to get a good rate from our bank, who we've been with since the 90's.

We cashed out to pay off student loans too. Cut the interest rate in half and lowered our monthly payments by $500. Feels nice to get those paid off even though I know I just rolled it into the mortgage.

[doebedoe]

That's about as good as it gets. Nice to be able to go with the local CU. I have yet to be able to get a good rate from our bank, who we've been with since the 90's.

We cashed out to pay off student loans too. Cut the interest rate in half and lowered our monthly payments by $500. Feels nice to get those paid off even though I know I just rolled it into the mortgage.

Yeah -- I will say its pretty nice to be able to just call up the mortgage specialists who is the only one working there directly for questions, updates, etc.

This allows us to pay off everything except a bit of federal student loan debt which will likely be forgiven in next few years (either via new fed policy or I'll hit 10 years of public service.) It does feel nice knowing its paid off even if its just in our mortgage. Interest rates are about halved, so it really helps cashflow (even if over the life of the loan it's not a whole lot better total funds).

[Garbowski]

I am refinancing and my title charges are a bit higher than last time. I'm in Seattle WA. I called my last title company (Amrock) and they aren't accepting new business with my new lender. I got a couple quotes from bigger players like Chicago Title online and it seems like I can save a few hundred.

Any recommendations on people to get title quotes from? Anything to look out for? I figure these companies are regulated enough that it should not matter much- or do I risk missing the closing, having some grifter steal my house, etc?

[liv2ski]

Odd, as I thought Amrock would do title/escrow orders for the consumer, but I looked at their website and that option seems to be gone now. Try First American or Fidelity Natl Title. I used them both before using Amrock.

[alembical]

Started refi shopping on January 12th and closed today. 2.25% on 15yr fixed

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[evdog]

I am refinancing and my title charges are a bit higher than last time. I'm in Seattle WA. I called my last title company (Amrock) and they aren't accepting new business with my new lender. I got a couple quotes from bigger players like Chicago Title online and it seems like I can save a few hundred.

Any recommendations on people to get title quotes from? Anything to look out for? I figure these companies are regulated enough that it should not matter much- or do I risk missing the closing, having some grifter steal my house, etc?

No personal experience as a consumer with Chicago Title but they used to handle our title work when I worked for a real estate developer selling condos and seemed to do a good job. Might come down to the individual you're dealing with. But if price is good I'd use them.

[Kevo]

I'm currently at 2.625% in Idaho. Danno's recent refi has me wondering if I can do better.

Can anyone confirm if they are seeing rates low enough to justify a REFI at the moment?

[Garbowski]

I'm currently at 2.625% in Idaho. Danno's recent refi has me wondering if I can do better.

Can anyone confirm if they are seeing rates low enough to justify a REFI at the moment?

You have a pretty good rate from what I've seen. 2.5% with the "$1 fee" on Zillow for a 30 year was the best I have seen recently, but I'm not checking constantly anymore. You just have to do the math on your own deal and see if it is worth it to you- I like to keep my breakeven point relatively soon.

[summit]

Is 2.625 (buying a half point) for a 30yr REFI with cashout no assesor still a good deal for CO? Good credit. The mortgage company (Sebonic/Cardinal) fucked up so much shit they have been working on this since AUGUST. Working into closing now and I'm wondering if it has been so long that I should be shopping again.