Mortgage Rate Question

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illinoisguy
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Joined: Fri Feb 14, 2020 2:45 pm

Mortgage Rate Question

Post by illinoisguy »

We have been preapproved through Chase bank and just recently had an offer we submitted on a house accepted. Is it too late to shop around for mortgage rates (20 year conventional/ 20% down)? Will we find a significantly better rate than Chase? Closing in scheduled for August 26th. Thanks!
Big Dog
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Re: Mortgage Rate Question

Post by Big Dog »

illinoisguy wrote: Wed Jul 21, 2021 12:11 pm We have been preapproved through Chase bank and just recently had an offer we submitted on a house accepted. Is it too late to shop around for mortgage rates (20 year conventional/ 20% down)? Will we find a significantly better rate than Chase? Closing in scheduled for August 26th. Thanks!
why not? Check some online sources, call local credit unions, or a couple of mortgage brokers... Tell them that you desire a 30-day close and ask if they could accommodate?

(It's been my experience that bricks-and-mortar Money Center banks have the worst rates, unless you keep a bunch of money on deposit with them.)
jarjarM
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Re: Mortgage Rate Question

Post by jarjarM »

You can still shop around, there's no requirement that force you to close with Chase. In fact, even after getting the loan, you still have 3 days to cancel (see link below). However, you may lose some closing cost depending on how much $$$ you already pay Chase (appraisal fee and etc). Also, shopping for another loan could delay your closing so keep that in mind.

https://www.consumerfinance.gov/ask-cfp ... rt-en-187/
pindevil
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Re: Mortgage Rate Question

Post by pindevil »

Congrats! Yes, shop around and get several quotes. Your wallet will thank you later. Do a search for "Refinance Megathread" here on bogleheads to get all the latest updates/tips for mortgages.

Right now Better.com is really popular among bogleheads. You will need to first open an application on their web site and then have them match their advertised rate from bankrate.com. I'm not sure they have 20 yr loans however.

Good luck!
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RickBoglehead
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Re: Mortgage Rate Question

Post by RickBoglehead »

As far as closing, unless you waived a mortgage contingency, YOUR bank will determine when the deal can close.
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Topic Author
illinoisguy
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Re: Mortgage Rate Question

Post by illinoisguy »

Thanks! Just to clarify, we have investments and personal banking with Chase. We almost closed on a house using Chase about a month ago (there were issues with the house in the end) and Chase locked 2.75% for a conventional 20 year loan with 20% down. Couple of questions:

1. Does 2.75% for 20 year conventional sound like a good rate (locked on June 7th, 2021) or is this high?
2. Does Chase ever match rates? If I were to get a quote from Better is there any chance Chase would match?
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djpeteski
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Re: Mortgage Rate Question

Post by djpeteski »

For some peace of mind I found Chase rates to be very good. What is not so good is the closing time of the loan.

Having purchased 7 months ago, I went with a mortgage company that could close in a short time (2 weeks) but the rate was higher. However, it did help us get the house at the price we wanted. The difference was .75%.

If I did not have the time constraint I probably would have went with Chase.
Last edited by djpeteski on Wed Jul 21, 2021 2:45 pm, edited 1 time in total.
chazas
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Re: Mortgage Rate Question

Post by chazas »

illinoisguy wrote: Wed Jul 21, 2021 1:50 pm Thanks! Just to clarify, we have investments and personal banking with Chase. We almost closed on a house using Chase about a month ago (there were issues with the house in the end) and Chase locked 2.75% for a conventional 20 year loan with 20% down. Couple of questions:

1. Does 2.75% for 20 year conventional sound like a good rate (locked on June 7th, 2021) or is this high?
2. Does Chase ever match rates? If I were to get a quote from Better is there any chance Chase would match?
Sounds high, better 30 year conforming rates are available, and almost a full 100 bps lower is available for 15 year.
immediateconvert
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Re: Mortgage Rate Question

Post by immediateconvert »

Shop your rate. Look through Costco where you still pay an origination fee but it is minimal. Most people "in the know" are using Radian Title to save money on closing. Rates have been better but 2.75% isn't bad without knowing details behind your loan.

You should concerned with closing costs via Chase and understanding what your Box A and C fees are. Lots of lenders sneak in tons of junk into Box C or their origination fee is $1500+.

There is only so much you can save on title fees by shopping around. Even with a full credit of those, which I had on my last refi, lenders still make 1/4 point on the front end and on the back end, typically.

When I refi'd earlier this year, LoanDepot (if you can talk to the right person) and Interactive Mortgage were both doing $0 refi's (all Box A and almost all Box C costs credited back to the buyer). Interactive Mortgage only operates in certain states.

Check out this thread to learn more: https://slickdeals.net/f/14173061-07-21 ... r-2-25-etc

A little research and getting some different quotes may save you significant cash. Check Better and Owning, the latter if you're in CA (and Interactive!). Typically, at least for SFH and condo loans that aren't jumbo, the independents will kill big banks' rates. Also see if you can find an independent broker who reps Universal Wholesale Mortgage for a quote. Even with a $1500 origination, their rate may be very competitive. My first refi was through them.

For SFH fixed loans that aren't jumbo, I've shopped quite a few loans for friends and haven't once seen Chase be the lowest fwiw.
djheini
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Re: Mortgage Rate Question

Post by djheini »

jarjarM wrote: Wed Jul 21, 2021 12:16 pm You can still shop around, there's no requirement that force you to close with Chase. In fact, even after getting the loan, you still have 3 days to cancel (see link below). However, you may lose some closing cost depending on how much $$$ you already pay Chase (appraisal fee and etc). Also, shopping for another loan could delay your closing so keep that in mind.

https://www.consumerfinance.gov/ask-cfp ... rt-en-187/
The first paragraph in the link you posted clearly says there is no 3 days to cancel on a purchase (which sounds like the OP's situation) - that only applies to a refinance.
If you are buying a home with a mortgage, you do not have a right to cancel the loan once the closing documents are signed.
exigent
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Re: Mortgage Rate Question

Post by exigent »

There are multiple relevant threads here, but we actually refinanced twice within the past year using Better.com and couldn't have been happier with the experience. This is not an endorsement, just anecdotal info. We wound up at 2.125% for 15 yrs with virtually no out-of-pocket costs. Our timing was pretty good, but not perfect in retrospect — but I'm happy with where we ended up.
Nate7out
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Re: Mortgage Rate Question

Post by Nate7out »

We offered on a house and went under contract on June 2. We switched lenders (to a mortgage broker out of Naperville) June 4th and closed on June 28th. We got 2.875% for a 30 year with 20% down. You have a fair amount of time to shop around.
jarjarM
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Re: Mortgage Rate Question

Post by jarjarM »

djheini wrote: Wed Jul 21, 2021 3:24 pm
jarjarM wrote: Wed Jul 21, 2021 12:16 pm You can still shop around, there's no requirement that force you to close with Chase. In fact, even after getting the loan, you still have 3 days to cancel (see link below). However, you may lose some closing cost depending on how much $$$ you already pay Chase (appraisal fee and etc). Also, shopping for another loan could delay your closing so keep that in mind.

https://www.consumerfinance.gov/ask-cfp ... rt-en-187/
The first paragraph in the link you posted clearly says there is no 3 days to cancel on a purchase (which sounds like the OP's situation) - that only applies to a refinance.
If you are buying a home with a mortgage, you do not have a right to cancel the loan once the closing documents are signed.
Oops, didn't read it carefully, thanks for the correction.
NabSh
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Re: Mortgage Rate Question

Post by NabSh »

I have Changed mortgage banks after the offer was submitted . (As I had used a different banks pre qualified letter).
Try lendingtree and bankrate web site.

You can also take some of the deal to see if chase will match it. In one case I was able to get a better deal with Bank of America even after I had locked the rates and had paid for the inspection fee (many banks use inspection fee as rate locking).
Dmody91
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Re: Mortgage Rate Question

Post by Dmody91 »

Chase usually has higher closing costs IMO
seawolf21
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Re: Mortgage Rate Question

Post by seawolf21 »

illinoisguy wrote: Wed Jul 21, 2021 12:11 pm We have been preapproved through Chase bank and just recently had an offer we submitted on a house accepted. Is it too late to shop around for mortgage rates (20 year conventional/ 20% down)? Will we find a significantly better rate than Chase? Closing in scheduled for August 26th. Thanks!
Chase is likely expensive.

Try
bankrate.com
better.com (if you have an AMEX issued by AMEX, https://better.com/with/amex)
costco mortgage (if you have Costco membership. If not, just join Costco).
Dilbydog
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Re: Mortgage Rate Question

Post by Dilbydog »

A cursory look at aimloan.com with a random Illinois zip code, conforming of course:

20 yr - 2.375 w/ ~ 3k in lender and 3rd party costs
15 yr - 1.875 w/ ~ 3.3k “

Go shop, you’ll be surprised
Topic Author
illinoisguy
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Re: Mortgage Rate Question

Post by illinoisguy »

So Better has preapproved us and said we don't need an appraisal on the new house we are purchasing.  Is this normal?  
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RickBoglehead
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Re: Mortgage Rate Question

Post by RickBoglehead »

illinoisguy wrote: Thu Jul 22, 2021 6:17 am So Better has preapproved us and said we don't need an appraisal on the new house we are purchasing.  Is this normal?  
What does Better say?

Why do you care if the bank seeks an appraisal or not?
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Nate7out
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Re: Mortgage Rate Question

Post by Nate7out »

Both of our lenders waived the appraisal early on. We did not get an appraisal.

If the house appraised low, you would have to bring more cash to closing.
Topic Author
illinoisguy
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Re: Mortgage Rate Question

Post by illinoisguy »

One of the reasons I ask is because we had something written into the contract saying we would only pay $10k over the appraised value if the house appraised under our offer. I just assumed all lenders did appraisals in this market. Should I assume the lender believes the appraisal will be close or above purchase price if they are waiving the appraisal?
immediateconvert
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Re: Mortgage Rate Question

Post by immediateconvert »

Banks don't waive appraisals, Fanny and Freddie do. It's completely out of a bank's or lender's control...
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ResearchMed
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Re: Mortgage Rate Question

Post by ResearchMed »

Do any lenders either waive an appraisal or do "drive-by appraisals" (are those actually the same thing?) for jumbo mortgages these days?

We've had that happen for several re-fi's since we bought this house.

We'd like to refi again with rates at this level, but one lender told us that NO one will do that anymore.

Does anyone know of ANY lender will do this for a jumbo? IF it turns out there is indeed one lender, even if not in our part of the country, then it's probably worthwhile for me to keep looking for one.
(The LTV is much less than 80% in case that matters, using any reasonable appraisal approximation.)

Suffice it to say (and this is absolutely non-negotiable) that we do not want anyone "in our house" these days. Refinancing isn't an emergency, so we have no interest in piercing our nice comfy bubble here. :wink:

Thanks.

RM
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cabfranc
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Re: Mortgage Rate Question

Post by cabfranc »

You can certainly shop for another lender, but you have to make sure they can close the loan on time. If you are looking at big banks they can be slow. Closing in 30 days can be challenging for big banks. Usually there is some language in your real estate contract (usually in the financing contingency) that says you will get financing by the closing date. If not, the seller can pull out. I'm not saying they would do that so far into the deal, just saying to keep this in mind and be careful when shopping for a different lender later in the game. The real estate market is crazy right now.
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ResearchMed
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Re: Mortgage Rate Question

Post by ResearchMed »

cabfranc wrote: Thu Jul 22, 2021 11:24 am You can certainly shop for another lender, but you have to make sure they can close the loan on time. If you are looking at big banks they can be slow. Closing in 30 days can be challenging for big banks. Usually there is some language in your real estate contract (usually in the financing contingency) that says you will get financing by the closing date. If not, the seller can pull out. I'm not saying they would do that so far into the deal, just saying to keep this in mind and be careful when shopping for a different lender later in the game. The real estate market is crazy right now.
When we purchased our current house, the Open House was absoutely mobbed, which was not at all a common experience.
We had been looking for quite some time (years!), so I had kept the pre-approval up to date. Yes, this meant a few fees every so often along the way.
However, that meant we were able to move very fast with a seller who really needed a relatively quick closing (diplomats leaving the country permanently). So the offer went in with an inspection contingency, but no financing contingency.

We immediately checked around the next morning, and applied with two other lenders.
One of them, plus the original, sort of bid for our mortgage business, so we dropped the third.
But we kept both of those "going" until almost the very last minute, "just in case", given our exposure - and with a high amount at risk.

Again, it meant a few extra fees along the way, but it was a strategy that got us our dream house when we finally found it.
And it allowed us to relax more during those final weeks/days, not worrying about "what if a single lender... proverbial bus... etc." :wink:

RM
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exigent
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Re: Mortgage Rate Question

Post by exigent »

illinoisguy wrote: Thu Jul 22, 2021 6:17 am So Better has preapproved us and said we don't need an appraisal on the new house we are purchasing.  Is this normal?  
Yes, they waived the appraisal on both of our recent refinances. We do have a favorable LTV, though, and I’m sure it varies across borrowers. But it’s certainly not abnormal for them to offer this. In the past, they’ve asked for the appraisal fee as a deposit and then they credit it back at closing. There were no issues with getting it credited back.

As someone else pointed out, it’s not actually up to Better, the decision to waive (or not) is made by Fannie/Freddie.
fettarules
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Re: Mortgage Rate Question

Post by fettarules »

illinoisguy wrote: Thu Jul 22, 2021 6:17 am So Better has preapproved us and said we don't need an appraisal on the new house we are purchasing.  Is this normal?  
I would suggest you take the LE from Better and have Chase match it if you want to stay with Chase. I’ve done this more than once and Chase always came through after their internal approval process.One thing good about Chase is they tend to service their loans instead of selling them.

As to the closing process I find Better more efficient when compared to Chase —- my most recent refi closed within 2 weeks despite a couple issues related to title and insurance.

Good luck!
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