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Ok, starting to think I'm not getting the best deal on my mortgage...any advice?


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Ok, I locked in an 80/15 loan with a lender for a 30 year fixed. I'm putting 5% down...6% rate on the 80% and 7.62% on the 15%. No points. Fees, etc seem reasonable (and guys on this board had said they are good). I'm not paying any PMI-lender says there is no PMI and it's not built in? No prepayment penalty on the loans

 

Anyway, now I'm seeing rates are dropping and also in the last few weeks I've seen others posting with better rates. I have 0 debt and an 800 credit score and I plan to be in the mortgage for a long time so I want to get the best deal!

 

Well, the lender is already working on the loan and closing is on the 15th. I haven't signed any forms-talked to him today and he's sending over some paperwork tomorrow but he didn't mention the rate was going down...am I paying too much for this loan and what are my options? Thanks!

Edited by scottv
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Are you comparing apples to apples?

 

95% LTV or CLTV is a hit to the rate, as well as subordinate financing with your 1st mortgage LTV at 80% is a hit to the rate... while you might be able to get .125% lower on your 1st, your 2nd mortgage rate is very solid, and rates can go up .125% within hours.

 

You don't pay PMI unless it's FHA or your 1st mortgage LTV is over 80%.

 

Anything wrong with your loan officer? Bad communication? Rude? Been surprises along the way?

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Keep in mind if he's already locked your rate and the loan is in underwriting (which it almost has to be to close in a week?) there isn't anything he can do about the rate unless he were to move it to a new lender where it isn't locked already. Doing this costs the lenders money and hurts the broker's pull-through rate with them. It's something I'll almost never do. And of course, starting over you'd find it difficult to close in 5 days.

 

Yes rates have dropped some, but 6% for 95% CLTV isn't bad. And rates moved back up today about .125%. If his service has been good, stick with it.

 

Of course, this is what "locking" the rate is all about, you know. :D Very few wholesales lenders have a float-down option if rates improve. Brokers can often only provide "float downs" by locking at lender A but delivering to lender B if the market improves. There's a very real dollar cost to the lender for locking a loan that doesn't close.

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Ok, well I guess I'm just getting the jitters since this is my first house and most money I've ever spent...I'll take your guys advice and just stick with it-the service has been fine so far and I guess I can always refi later if rates really go down because I haven't spent much to get into this loan. Thanks!

Edited by scottv
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While .125% in rate is a difference, if the service has been as expected (that's rare in this industry) then I'd stick with what you have... worrying over .125% in rate isn't worth it in my opinion. I just closed on a property last month and while there was another lender promising a lower rate (by .25%), they did not have the service nor were able to communicate as effectively as the loan officer who closed my loan... it was worth the little higher payment knowing that my loan would close without a problem and in time.

Edited by liverichly
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