mortgage rates

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Amarecat
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Joined: Mon Aug 27, 2018 10:56 pm

mortgage rates

Post by Amarecat »

Been shopping around for mortgages. Have a new addition on the way and I'm hoping to live in the home for a very long time.
I've read part of a free version of nolo's guide to buying your first home and the mortgage professor website after looking for previous posts on this forum.

After shopping around a bit looking at...

chase
ecredit union
morty
better mortgage
wells fargo
aim loan
schwab
lending tree
first republic bank
citi bank
citi national bank
torrey pines bank
first bank
bank of america
fidelity
Los angeles Fed credit union
tda
vanguard
mortgage professor
nasa
zillow
new american funding
quicken loans
loan depot
discover home loans

and inputting in my personal information into sites that seem to have a good rate, the best rates seem to be chase, which seems unexpected.
We have excellent credit.

Has anyone had good experience with them as mortgage lenders? Anyone have experience with chase private client? we'd use the youinvest account.
We are thinking of moving assets over to chase private client for a discount which they will limit at total discount at 2.5% interest rate.

30 year fixed rate loan with 20% down. Cost of the house can range up to 900,000 k (high cost of living Los Angeles; so this will still be a conforming loan)
Currently without discount 2.99% interest rate at .03 points for 213 dollars, closing costs estimated 6552$ and estimated prepaid items 5464$
estimated loans costs: loan discount fee, appraisal fee, credit report fee, flood life of loan coverage, flood determination fee, processing fee, tax service fee, settlement or closing fee, deed prep fee, lenders title insurance, alta 8.1 environmental protection lien, recording fee deed, recording fee mortgage.

The closest other rate is 3.0% with $27,923 closing costs through better mortgage.

Chase seems very low in comparison, which is strange. Am I being to nervous as a first time home buyer?
Last edited by Amarecat on Fri May 29, 2020 12:04 pm, edited 1 time in total.
Jags4186
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Re: mortgage rates

Post by Jags4186 »

Those closing cost with Chase and Better both seem astronomical to me. I would look for a no cost mortgage (except prepaids) in order to do true apples to apples. I am closing on a no cost 3.125% 30 year mortgage in a week or so. Others have been able to do even better.
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Thrifty Femme
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Re: mortgage rates

Post by Thrifty Femme »

We need more details. What term? 30, 15, 20 year? Jumbo or conforming? What's your estimated LTV? I hope the almost 28k in fees is a typo... Also, there is a lengthy thread on refinancing on the personal finance board. You might get more responses there.
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NewMoneyMustBeSmart
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Re: mortgage rates

Post by NewMoneyMustBeSmart »

I think you are making a mistake not looking at LenderFi.
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein
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NewMoneyMustBeSmart
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Location: Midwest

Re: mortgage rates

Post by NewMoneyMustBeSmart »

Amarecat wrote: Thu May 28, 2020 6:30 pm
We are thinking of moving assets over to chase private client for a discount which they will limit at total discount at 2.5% interest rate.
Currently without discount 2.99% interest rate at .03 points for 213 dollars, closing costs estimated 6552$ and estimated prepaid items 5464$

The closest other rate is 3.0% with $27,923 closing costs through better mortgage.
2.5% is good but closing costs needs to be trifurcated between:

1. Mortgage Originator's Fees
- mine are $0

2. Facilitator's fees like Title, Appraisal, etc.
- This should be around $1k - $2k

3. Prepaid things like escrowed insurance/taxes etc

#2 is often negotiable, at least part of it is.

#3 is moot - that ""just is" - don't factor that into your costs, that's just a cash flow issue.

#1 should be little - build it into your APR or NPV.

Go with the solution that gives you the least overall cost. Use a calculator like those at https://www.mtgprofessor.com/home.aspx to compare overall costs.

$25k closing costs compared to your other offer is obscene.
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein
Flyer24
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Re: mortgage rates

Post by Flyer24 »

Topic moved to Personal Finance.
rascott
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Re: mortgage rates

Post by rascott »

Jags4186 wrote: Thu May 28, 2020 6:32 pm Those closing cost with Chase and Better both seem astronomical to me. I would look for a no cost mortgage (except prepaids) in order to do true apples to apples. I am closing on a no cost 3.125% 30 year mortgage in a week or so. Others have been able to do even better.
Where did you get this? Best I can find is about 3.375 for a total no cost refi
rascott
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Re: mortgage rates

Post by rascott »

Those closing costs seem outrageous. What price point we talking here?
Hoosier CPA
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Re: mortgage rates

Post by Hoosier CPA »

I keep looking too - can't find anything without a minimum of around $3K in costs. I'm currently at a 3.5% on around $200K in principal, with about 22 years left on the mortgage. If I can get it down to 3.0%, either on another 30 or perhaps a 20, that would save $1,000 in year initially on interest. I'd like to see the costs paid off within 2 years.
Starfish
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Re: mortgage rates

Post by Starfish »

Crazy prices.
You should only look at mortgages at NO cost, NO points.
I am getting 2.99% with owning.com but I understand they operate only in California and is conforming loan.
Northern Flicker
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Re: mortgage rates

Post by Northern Flicker »

You can buy down the rate with closing costs. This is a win if you hold the loan longer than the expected term (not term to maturity) of the mortgage, but you lose if you sell the house or refi the loan before that. The expected term is the probabilistic expected value of the length of time the lender/investor believes you will hold the loan. A lower closing cost is less risky (eg you get a job transfer after year 1) but you also should compare APRs and not just loan interest rates to get an apples-to-apples comparison.
Risk is not a guarantor of return.
Snowball325
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Re: mortgage rates

Post by Snowball325 »

If in California, try https://empireofamerica.com/
Cyanide123
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Re: mortgage rates

Post by Cyanide123 »

I haven't looked too deeply into this since i will be buying a home about 2 years from now.

But one of the things I've thought about has been using one of my personal broker accounts at m1 finance to borrow against.

This will be 0 fee and at 2 percent interest if i pay the 99/year cost of m1 plus. There are no terms for the loan either, you technically have to just keep paying the interest and don't even have to really touch the principal of you don't want to. Though there will be some degree of variability to the rate here.

Of course then you can't deduct a mortgage interest deduction. But ever since the standard deduction went up to 24k, not a lot of people are itemizing i feel. So if you don't think you will be itemizing, then it's an interesting option, especially if you have enough assets to become a Chase private client.

Anyway.... This is just a thought that i personally toy with when contemplating on investing massively into real estate at some point of life. It is probably not the right answer for 99 percent of people however.
RobLyons
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Re: mortgage rates

Post by RobLyons »

Just refi'd to a 15 year 2.35% with Northpointe Bank. Very smooth transaction. I highly recommend

Ryan Bird
Loan Officer
NMLS 150099
p 616-726-5552 | f 616-588-6328
ryan.bird@northpointe.com
"Great parenting sets the foundation for a better world"
Jags4186
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Re: mortgage rates

Post by Jags4186 »

rascott wrote: Thu May 28, 2020 10:33 pm
Jags4186 wrote: Thu May 28, 2020 6:32 pm Those closing cost with Chase and Better both seem astronomical to me. I would look for a no cost mortgage (except prepaids) in order to do true apples to apples. I am closing on a no cost 3.125% 30 year mortgage in a week or so. Others have been able to do even better.
Where did you get this? Best I can find is about 3.375 for a total no cost refi
I’m using a local broker who I’ve worked with in the past but I got him to match the deal given to me by LoanDepot. I would check LoanDepot out if I were you.

Rates change every day and may have moved up since last month, once I was satisfied that I was getting the best I could get I stopped looking. Regardless, I would never pay $20k or even $6k in closing costs. Tell whoever you’re working with you want a $0 cost mortgage (except prepaids) estimate. Then call places like LoanDepot, Costco, Better.com, Lenderfi, and ask for their best $0 cost mortgage. Unless you have credit issues or this is an unusual loan, you should be able to get much better terms than you’ve shared.
HEDGEFUNDIE
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Re: mortgage rates

Post by HEDGEFUNDIE »

Cyanide123 wrote: Fri May 29, 2020 1:39 am I haven't looked too deeply into this since i will be buying a home about 2 years from now.

But one of the things I've thought about has been using one of my personal broker accounts at m1 finance to borrow against.

This will be 0 fee and at 2 percent interest if i pay the 99/year cost of m1 plus. There are no terms for the loan either, you technically have to just keep paying the interest and don't even have to really touch the principal of you don't want to. Though there will be some degree of variability to the rate here.

Of course then you can't deduct a mortgage interest deduction. But ever since the standard deduction went up to 24k, not a lot of people are itemizing i feel. So if you don't think you will be itemizing, then it's an interesting option, especially if you have enough assets to become a Chase private client.

Anyway.... This is just a thought that i personally toy with when contemplating on investing massively into real estate at some point of life. It is probably not the right answer for 99 percent of people however.
The same thought crossed my mind. It’s not a bad idea, but only worth trying if you already have a short term ARM rate.
psmoove
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Re: mortgage rates

Post by psmoove »

RobLyons wrote: Fri May 29, 2020 5:13 am Just refi'd to a 15 year 2.35% with Northpointe Bank. Very smooth transaction. I highly recommend

Ryan Bird
Loan Officer
NMLS 150099
p 616-726-5552 | f 616-588-6328
ryan.bird@northpointe.com
That’s a great rate. What were the closing costs, if any?
Topic Author
Amarecat
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Joined: Mon Aug 27, 2018 10:56 pm

Re: mortgage rates

Post by Amarecat »

rascott wrote: Thu May 28, 2020 10:34 pm Those closing costs seem outrageous. What price point we talking here?
Hi, sorry I updated my original post for more information.
Topic Author
Amarecat
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Joined: Mon Aug 27, 2018 10:56 pm

Re: mortgage rates

Post by Amarecat »

rascott wrote: Thu May 28, 2020 10:34 pm Those closing costs seem outrageous. What price point we talking here?
Hi, sorry I updated my original post for more information.
Topic Author
Amarecat
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Re: mortgage rates

Post by Amarecat »

Jags4186 wrote: Fri May 29, 2020 8:29 am
rascott wrote: Thu May 28, 2020 10:33 pm
Jags4186 wrote: Thu May 28, 2020 6:32 pm Those closing cost with Chase and Better both seem astronomical to me. I would look for a no cost mortgage (except prepaids) in order to do true apples to apples. I am closing on a no cost 3.125% 30 year mortgage in a week or so. Others have been able to do even better.
Where did you get this? Best I can find is about 3.375 for a total no cost refi
I’m using a local broker who I’ve worked with in the past but I got him to match the deal given to me by LoanDepot. I would check LoanDepot out if I were you.

Rates change every day and may have moved up since last month, once I was satisfied that I was getting the best I could get I stopped looking. Regardless, I would never pay $20k or even $6k in closing costs. Tell whoever you’re working with you want a $0 cost mortgage (except prepaids) estimate. Then call places like LoanDepot, Costco, Better.com, Lenderfi, and ask for their best $0 cost mortgage. Unless you have credit issues or this is an unusual loan, you should be able to get much better terms than you’ve shared.
I don't think it's an unusual loan. I added more information to my original post if that makes things more clear.
Better.com is better mortgage, they were the ones with the larger closing fees. I don't have any credit issues at all, excellent credit ratings.

Do the high closing costs have to do with the high amount of the loan?
Topic Author
Amarecat
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Re: mortgage rates

Post by Amarecat »

Snowball325 wrote: Fri May 29, 2020 1:33 am If in California, try https://empireofamerica.com/
My husband just looked at this, with the size the of the loan, the rates are even higher.
target4321
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Re: mortgage rates

Post by target4321 »

Just locked 2.875% two days ago
20 year fixed
$1000 in closing costs (not counting the mandatory PA title insurance)

Knocked 2.5 years off my mortgage and will save $30,000 on interest.
Same monthly mortgage payment!

Guaranteed Rate Mortgage Broker

The rates went up today to 3.25%
Glad I locked.
Topic Author
Amarecat
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Re: mortgage rates

Post by Amarecat »

Starfish wrote: Thu May 28, 2020 11:31 pm Crazy prices.
You should only look at mortgages at NO cost, NO points.
I am getting 2.99% with owning.com but I understand they operate only in California and is conforming loan.
When you say no costs, does that mean there are NO estimated closing costs at all? (those included in the original post that I changed)

I'm under the impression that the prepaid items are unavoidable regardless of what lender you go through as they are homeowners insurance, real estate taxes etc).

It looks like owning.com is only for refinance. This will be my first mortgage.
Jags4186
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Re: mortgage rates

Post by Jags4186 »

Amarecat wrote: Fri May 29, 2020 12:34 pm
Starfish wrote: Thu May 28, 2020 11:31 pm Crazy prices.
You should only look at mortgages at NO cost, NO points.
I am getting 2.99% with owning.com but I understand they operate only in California and is conforming loan.
When you say no costs, does that mean there are NO estimated closing costs at all? (those included in the original post that I changed)

I'm under the impression that the prepaid items are unavoidable regardless of what lender you go through as they are homeowners insurance, real estate taxes etc).

It looks like owning.com is only for refinance. This will be my first mortgage.

Here is my loan estimate. A, B, C, D, and E are $1,635. All $1,635 are covered by the lender credit in J. Prepaids, F, is interest and is dependent on the day of the month you close. Escrow, G, is only if you decide to include your insurance and taxes in your monthly payment. While there is a cost there I am simply rolling my old escrow account over so I won't actually need to come out of pocket. If this is your first purchase you will need to fund this payment. Since you are purchasing a new house, you will also likely need an appraisal (not required for my loan.). Depending on your state you may have other things in A through E. You want quotes so that the lender credit in J equals all of your A-E costs. I hope this helps you.

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Topic Author
Amarecat
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Re: mortgage rates

Post by Amarecat »

NewMoneyMustBeSmart wrote: Thu May 28, 2020 7:24 pm I think you are making a mistake not looking at LenderFi.
Hi Thanks for the suggestion

Looked at lender fi, looks like their apr would still be higher than what I'm looking at with chase. 30 year fixed

rate 2.875% apr 3.209% monthly payment $2,987 points/credits $29,369

lowest points credits costs are respectively
5.500% 5.573% $4,088 $4,702
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NewMoneyMustBeSmart
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Re: mortgage rates

Post by NewMoneyMustBeSmart »

Amarecat wrote: Fri May 29, 2020 2:52 pm
NewMoneyMustBeSmart wrote: Thu May 28, 2020 7:24 pm I think you are making a mistake not looking at LenderFi.
Looked at lender fi, looks like their apr would still be higher than what I'm looking at with chase. 30 year fixed
I received a much lower rate than advertised initial after walking with the fellow. My perception is that many lenders have a lot of business and have discretion. Also, timing!
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein
Topic Author
Amarecat
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Re: mortgage rates

Post by Amarecat »

NewMoneyMustBeSmart wrote: Fri May 29, 2020 5:41 pm
Amarecat wrote: Fri May 29, 2020 2:52 pm
NewMoneyMustBeSmart wrote: Thu May 28, 2020 7:24 pm I think you are making a mistake not looking at LenderFi.
Looked at lender fi, looks like their apr would still be higher than what I'm looking at with chase. 30 year fixed
I received a much lower rate than advertised initial after walking with the fellow. My perception is that many lenders have a lot of business and have discretion. Also, timing!
okay maybe and application would do me good, there's no reason not to since its just one credit pull.
RobLyons
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Re: mortgage rates

Post by RobLyons »

psmoove wrote: Fri May 29, 2020 12:21 pm
RobLyons wrote: Fri May 29, 2020 5:13 am Just refi'd to a 15 year 2.35% with Northpointe Bank. Very smooth transaction. I highly recommend

Ryan Bird
Loan Officer
NMLS 150099
p 616-726-5552 | f 616-588-6328
ryan.bird@northpointe.com
That’s a great rate. What were the closing costs, if any?

Net loan costs were $2843 which includes $1195 origination fee then the usual appraisal, closing fee, title insurance, recording fees.. I ended up with a $1881 check back to me. They waived the appraisal due to >50% equity. Not sure if that answers your question, I'm not very well versed on the topic.
"Great parenting sets the foundation for a better world"
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