I initially locked in at 3.625% but then on July 28 loan eligibility requirements with income changed with the Freddie Mac loan I was quoted... making me no longer eligible. Specifically to qualify my income could not exceed 80% of the Median Income, and mine did. The bank was no longer able to honor the 3.625% rate without me paying points. 3.75% is pretty competitive where I am at. My co-worker just refinanced and he had 3.6% but paid a lot more in points. I forget the exact amount but he had 0.4% in points and it was at least $1,700. And, unlike me, he has over 20% equity in his home. This is the realistic, competitive rate for my area.Bacchus01 wrote: ↑Sun Aug 11, 2019 6:45 pmThat is a historically good rate. It’s not currently competitive especially considering paying points. Again, slow down.smithbt2 wrote: ↑Sun Aug 11, 2019 5:39 pmWhat? Mortgage rates are nearing an all-time low right now. 3.625% is excellent for a 30 year mortgage?Bacchus01 wrote: ↑Sun Aug 11, 2019 5:33 pmGood lord, what are the rest of the fees? That’s really high.smithbt2 wrote: ↑Sun Aug 11, 2019 5:32 pmYes. It was actually $8,100 before I questioned the price of what the title company wanted to charge me for closing. I paid $720 for points (3.75% to 3.625%) plus $450 and $350 for the Maryland Mortgage Certificate, which provides a 25% Federal Tax Credit of Mortgage Interest for the life of the loan, capped at $2K. It is worth the added cost. I don't plan on upgrading to a bigger house or moving. Locking in a lower rate was the best choice for me. I will continue to pay $2,050 toward my mortgage and pretend like the payment did not change.
And that rate isn’t even that great.
I believe these closing costs are pretty standard, or even less than what some may be paying.
That $7200 you quoted included escrow, which most would not include. I don’t escrow. Escrow is giving someone else a loan for free.
$4200 in closing costs is not bad, but it’s also not ultra competitive. Those bank fees are high.
Also, the MCC fees are not common for most people. Very few have mortgage certificates or even know what they are. In fact I recall TurboTax saying it is rare to have a mortgage certificate when I claimed my credit for 2018.
Is Escrow optional if you have a mortgage? I was told it is mandatory.