How to get best mortgage rate?

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PluckyDucky
Posts: 288
Joined: Tue Jan 15, 2019 8:29 pm

How to get best mortgage rate?

Post by PluckyDucky »

It is difficult to compare mortgage rates without filling an application with every single lender, because the advertisements do not let you know how many points there are for that rate. Thankfully, Bankrate does let you know in their comparison chart.

I'm currently working with a Loan Depot person that did my last home loan (through a different company at the time). Loan Depot was around 3.25-3.5% APR before last month and comparable to other things I found. Now I am just under 60 days to closing and they want to do 4% APR.

As of today 1/11/22 by checking on the specific websites, Blue Spot Home Loans is 3.374 apr (0 pt), BofA is 3.478 apr (0.57 pt), Wells Fargo is 3.6xx apr (up to 0.5 pt) (checking with 25% down, but 20% down doesn't increase the rates that much). Curiously, Better.com is 4% APR per Bankrate as of today, when they were the around best a couple months ago.

The loan amount is around 300k depending on how much I put down. Credit is 775+ depending on which score you check, FICO 805-825 per my CC account. OKC area. New build.

How do I get the best rate? I know the loan depot person will get the job done by closing, so I'm hesitant to go with someone else, but 3/4% drop in rate is a large amount of money over the loan term.
sureshoe
Posts: 812
Joined: Tue Jan 15, 2019 4:26 pm

Re: How to get best mortgage rate?

Post by sureshoe »

I'd be curious if anyone thinks they have a magic answer, but for the most part - the rates are what the rates are. You're going to see small fluctuations in closing costs/etc, but you're generally going to get a similar rate at most places.

Where it gets a bit nuanced is appraisal fees, etc. If you think you want a mortgage, you should be able to run a quote through Lower.Com, Better.Com, and maybe 1 or 2 other sites pretty quick. Do them all in one batch, and it has a minimal affect on your credit rating. They're all going to quote out similar. If you want to use a local bank or credit union, it might not be as smooth, and you're going to pay a few dollars more.

Most places are going to tell you a rate, but the closing costs are going to be different.
Cruncher
Posts: 181
Joined: Mon Feb 01, 2010 12:56 am

Re: How to get best mortgage rate?

Post by Cruncher »

I've used Bankrate doc com for close to 15 years. Have over to a half dozen refi's &/or purchases these past couple decades.

No personal information, just select some basic items (primary / secondary, length of loan, location, credit score, buy / refi, ...).

Doesn't work well when the markets are closed though.
Cruncher
Posts: 181
Joined: Mon Feb 01, 2010 12:56 am

Re: How to get best mortgage rate?

Post by Cruncher »

Currently have 3 RE loans. Two at 2% and one at 2.5% (investment property).

One of the loans, I refinanced in May 2013 at 2.5% (primary home).
Cruncher
Posts: 181
Joined: Mon Feb 01, 2010 12:56 am

Re: How to get best mortgage rate?

Post by Cruncher »

Yeah, finally read your post, I was just replying to the thread topic.

Bankrate is great.
exodusNH
Posts: 1926
Joined: Wed Jan 06, 2021 8:21 pm

Re: How to get best mortgage rate?

Post by exodusNH »

PluckyDucky wrote: Tue Jan 11, 2022 12:14 pm It is difficult to compare mortgage rates without filling an application with every single lender, because the advertisements do not let you know how many points there are for that rate. Thankfully, Bankrate does let you know in their comparison chart.

I'm currently working with a Loan Depot person that did my last home loan (through a different company at the time). Loan Depot was around 3.25-3.5% APR before last month and comparable to other things I found. Now I am just under 60 days to closing and they want to do 4% APR.

As of today 1/11/22 by checking on the specific websites, Blue Spot Home Loans is 3.374 apr (0 pt), BofA is 3.478 apr (0.57 pt), Wells Fargo is 3.6xx apr (up to 0.5 pt) (checking with 25% down, but 20% down doesn't increase the rates that much). Curiously, Better.com is 4% APR per Bankrate as of today, when they were the around best a couple months ago.

The loan amount is around 300k depending on how much I put down. Credit is 775+ depending on which score you check, FICO 805-825 per my CC account. OKC area. New build.

How do I get the best rate? I know the loan depot person will get the job done by closing, so I'm hesitant to go with someone else, but 3/4% drop in rate is a large amount of money over the loan term.
I used a local mortgage broker. 2.625 with no points and no escrow on a plain refi. Rates had dropped to 2.5 a couple of days before Christmas but we didn't lock because we expected BoA to take their sweet time on the HELOC subordination and figured it'd expire before then.

It went up to 2.75. We locked when it dropped back to 2.625, which was the original estimate when I started the process after Thanksgiving.
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novolog
Posts: 270
Joined: Tue Jan 30, 2018 6:24 pm
Location: Greater Boston

Re: How to get best mortgage rate?

Post by novolog »

recently got a mortgage.

the rates are the rates, there isn't really much room for negotiation like buying a car.
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BowgleheadBobblehead
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Joined: Sat Oct 03, 2020 3:53 pm

Re: How to get best mortgage rate?

Post by BowgleheadBobblehead »

Cruncher wrote: Tue Jan 11, 2022 5:11 pm Currently have 3 RE loans. Two at 2% and one at 2.5% (investment property).

One of the loans, I refinanced in May 2013 at 2.5% (primary home).
Where have you found 2.5% on investment loans? I know rates have gone up a bit now but I never found anything below 3.25% without significant points.
Golf maniac
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Location: Florida

Re: How to get best mortgage rate?

Post by Golf maniac »

You can get rates and approximate closing costs without an application or credit pull. You just need to call or email the various companies. I recommend starting with Aimloan and Lenderfi. Both of these online lenders will allow you to put in your information and get the rate and closing costs without providing any personal information. Then you can use this information to look at other online lenders. I would also check with local lenders and credit unions. Then look at the larger companies (BofA, Wells, JPM, etc). Finally I would check in with a local broker. You may be able to play one off the other to get a reduction in closing costs or a slight decline in a rate. Remember it never hurts to ask the lender to reduce a cost or the rate.

If you put the work in you will find the lowest rate and closing costs combination. You need to remember the best rate / closing cost lender will change from month to month as each lender will make changes to where they want to get more customers and where they want to reduce customer exposure. Sometimes you just luck out and get a mortgage lender who knows how to work the system and get you the lowest rate and closing costs. Sometimes you get a lazy mortgage lender who is trying to make as much as possible on your loan. That is why it is important to shop around and not just go with who you used before.
muffins14
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Location: New York

Re: How to get best mortgage rate?

Post by muffins14 »

At a huge company like BofA, WF,Citi, JPMC for example, is it naughty to ask for quotes from multiple loan officers at different branches? How would you figure out which one you like or don’t like, or which one you think would be “working hard” for you?
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Topic Author
PluckyDucky
Posts: 288
Joined: Tue Jan 15, 2019 8:29 pm

Re: How to get best mortgage rate?

Post by PluckyDucky »

I was able to get locked in for 3.375% with Blue Spot Home Loans.
Hypersion
Posts: 281
Joined: Mon Feb 18, 2013 3:20 am

Re: How to get best mortgage rate?

Post by Hypersion »

Like anything you have to shop around. Last time I found the best rate through a broker, before that an online only bank.
chrisam314
Posts: 108
Joined: Tue Jun 28, 2016 9:22 pm

Re: How to get best mortgage rate?

Post by chrisam314 »

Sit down and apply to at least 5 lenders. Get an official loan estimate from each. Make sure you give the same exact info to each one (term, down payment etc). Take the best one and send it to the worst and see if they will beat it. Rinse and repeat until you finally get a 'no we can't beat that' from all except the winning bid.

Yes, filling out the forms is tedious but applications are pretty consistent among lenders. But from my experience they will not budge unless you give them a better offer that they can escalate internally. They are sales people (loan officers) and the application is qualifying for them whether or not you are worth all of the work to get the commission.

We just closed on a 30 year fixed rate at 2.5% with no points a month ago with Chase. They offered 3% until other lenders had better offers then magically the rate dropped. The market rate may be higher today but is it worth your time to shop around to save that kind of money? Is it to me.

Competition is a consumers best friend.
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sunny_socal
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Joined: Tue Mar 24, 2015 4:22 pm

Re: How to get best mortgage rate?

Post by sunny_socal »

Just look at the megathread and apply at the best lenders, I'd say at least 4. Don't pay any fees or appraisals until you get a preliminary quote.
tonyclifton
Posts: 413
Joined: Sat Feb 08, 2020 5:25 pm

Re: How to get best mortgage rate?

Post by tonyclifton »

Third Federal Savings and Loan likely has the best rates. Read the fine print! Good luck!
Sellery1031
Posts: 23
Joined: Tue Oct 31, 2017 9:44 pm

Re: How to get best mortgage rate?

Post by Sellery1031 »

I just bought a house.
Here’s what I did-

I used 1 lender for pre-approval.

I included a clause in my purchase offer that allowed me to change lenders.

After my purchase offer was accepted I reached out to and applied with number of lenders: bank, broker, credit union. I explained I had a signed purchase agreement and was shopping for best mortgage (rate and fees).

30-days before close I very openly leveraged one lender against another and negotiated a very competitive rate with very low fees.

The downsides
1) it was time consuming to apply with multiple lenders
2) our credit was run twice - once for pre-approval and once when I applied to multiple lenders after having found our house

The upsides
1) combination of lowest rate and lowest fees
sc173
Posts: 33
Joined: Sun May 16, 2021 8:27 pm

Re: How to get best mortgage rate?

Post by sc173 »

When I recently purchased, I got a very low rate quote from Aimloan, they seem to consistently offer rates at or near about the bottom available in the market. I have had good luck with Wells Fargo on a number of fronts before (I know, I know..., but they were perfect on my last two mortgages), so I asked them to match it. They did.
moneyflowin
Posts: 95
Joined: Sat Oct 16, 2021 6:14 am

Re: How to get best mortgage rate?

Post by moneyflowin »

I used a mortgage broker. They have experience with lenders who are easy to deal with and have a better chance of closing.

My worst experience was shopping for the lowest rate online. Do not chase the lowest rates. The company I dealt with was absolute trash. They didn't answer their phones or emails. After many emails and voicemails, they'd respond after 2 months. By then, the rate lock expired. Bunch of imbeciles
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