General Question

testtoast99's avatar

Best mortgage rates?

Asked by testtoast99 (80points) December 19th, 2008

What do you all do to find the best mortgage rates? Simple web searches seem to turn up misleading commercial advances rather than actual data. Is there any place that has an objective listing of rates? Thanks!

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12 Answers

Computergenius's avatar

Look at the website of a local (to you) credit union. They are not for profit, and will quote you a fair rate without ripping you off. I just refi’d my 30 year mortgate that was 6.625 percent to a 20 year at 4.5 percent. Of course, that was two days ago, and that rate I got is now 4.875 here.

Mizuki's avatar

Keep in mind, that you may (depending on the situation) have to pay up to 3–4% of the loan amounts in Points in order to get the lowest rates. There is a 1.75% hit for credit score under 720, and big hits for loans over 75% LTV on refi’s, 80% on purchases. About 90% of the folks I’ve spoken with don’t qualify based on declining home values and being upside down in the home.

That said, the MTA and LIBOR and 10yr T-bill indices are soooo low that it alwost makes sense to stay in the ARM loan if you’ve got one.

Low rates are there if you have golden genitals and shit ice cream.

Computergenius's avatar

wow mizuki, I don’t have either of those qualifiers, and I got a low rate. :-)

Mizuki's avatar

I saw the HUD 1 on a refi yesterday where the client paid 15,000 in Points for that 5% rate.

bythebay's avatar

If someone paid 15,000 for a 5% rate in this market they were very uninformed and very mislead by their lender. There is no “hit” for a credit score under 720 – you’re just a bigger risk if you have bad credit, risky income, poor job stability, etc. If someone uses an on-line lender or a mortgage warehouse type of lender you’re probably going to get screwed. Go to a reputable lender, a reputable loan officer, and be patient. In this market even the best of loans are taking a bit longer to settle.

Mizuki's avatar

bythbay—I’d be happy to email to you Friday’s rate sheet from 5 or 6 different whole sale lenders. The hits I talk about apply to higher LTV loans, and since almost all loans are Gov loans, it matters very little what lender one chooses since all the mtg money is coming from the Gov no anyway. You must have a lot of equity to not get hit by the points.

bythebay's avatar

Um, Mizuki…my husband co-owns a mortgage company, and has for 25 years. I have been in mortgage banking myself for over 20 years. Currently I consult on marketing and pricing. His company is a very successful one that is growing while others are indeed faltering and closing – because they only extend loans to those who can indeed qualify and afford the loans they are seeking. His company only saw 24 loans default during the the last year – 24 – out of hundreds of millions of dollars in loans. You are very misinformed, especially with regard to your statements regarding Government loans. Please also understand their is indeed a HUGE difference between a mortgage lender, a mortgage broker and a wholesale lender. I choose not to espouse lending information here on a regular basis because people need to seek out the best mortgage for them; there is no exact formula anymore. However, when people start spouting bullshit I find it hard to hold my tongue.

Mizuki's avatar

The rate sheet I am looking at is from Plaza Home Lending (Wholesale) and CMG, and another from Provident Lending…Below are the A Paper Hits for credit score…

0.000 0.000 – Purchase or Rate and Term Refinance
75.01 – 80 2.750 2.750 2.250 1.750 1.000 0.750 0.250 0.000
80.01 – 85 2.750 2.750 2.000 1.500

Full Amortizing, LTV >75<=80, CLTV >95<=97, FICO <680 1.500

Just to name a few…could you please spout some more bulshit for all of us to read?

bythebay's avatar

Plaza is a broker; CMG…another broker. And Provident is an internet lender. Why not just go to Petco to get a loan?

I could spout all day long about how foolish you are, but I try to not be condescending in response to idiocy. In addition to our combined mortgage experience, we’ve also purchased 3 properties in the past 4 months. I thought we were pretty well informed, but you, you must be an expert. How lucky for all of us that you’re here to share your knowledge.

Response moderated
chyna's avatar

I actually checked several places and a new bank opened in my neighborhood so I checked there, and got the best rate. No points. I went from 6.5% to 4.2% and knocked off 9 years on my loan.

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