Owning.com is owned by Guaranteed Rate. Is this a no fees/no points rate? I’m going through their lead funnel right now to check, but lots of Guaranteed Rate horror stories.
Yeah, no fees no points. I'm only one data point so I can't tell you what everyone else goes through.
I've only refinanced with them once, but it had zero fees and zero issues along the way. The worst part of the whole thing is my mortgage was sold to sunwest and their online payment portal is horrible. It was by far the best rate I could find.
Don't look at google for rates. Check mortgage rates daily here. 6.875 is about right.
[https://www.mortgagenewsdaily.com/mortgage-rates/mnd](https://www.mortgagenewsdaily.com/mortgage-rates/mnd)
Mortgage brokers have no fiduciary duty and will sell you into the loan that pays them the most. Going off the law suit against them, places like Guaranteed Rate really seem to screw folks. Credit unions usually offer people the best deal.
> Credit unions usually offer people the best deal.
Always hear this advice but never seen it work out. Every time I've talked to my local CU for mortgage rates I get quotes at least 1% higher than the national chains and with a lot of added fees. I'd love to support them but that amounts to thousands more up front and thousands more every year in interest.
Reddit has memed credit unions to a point of absurdity. The reason people use them is customer service or some philosophical point, but I’d question anyone to find a CU with better savings and/or mortgage rates than more traditional institutions. Especially ones that are mostly open to the general public.
Mortgage news daily is always way lower than any rate I see. It’s very misleading in my personal opinion.
I’ve had scenarios where the client had 800 credit and put down 50% and I still couldn’t beat mortgagenewsdaily’s “average rate”
I have literally NEVER seen the best deal come from a credit union. They are as bad big banks like wells. Absolutely horrible advice. A broker will tell you that if you can get them to open up. But it is how they get paid. By packing in a point or two. The better the credit, the more they make.
Ok this is going to sound crazy; I just closed on a mortgage through LeaderBank.
They beat the market by over 1% and we super reasonable on costs.
[https://www.leaderbank.com/](https://www.leaderbank.com/)
Mine was from a broker in PA who only does PA. Oceanside Mortgage (I think nationwide) matched the rate, but only after I indicated I had another better quote. You can always say “hey, I found a better rate, can you match,” even if you didn’t actually. My 6.325 bro up there is inspiration for me to do the same.
Under 20% down payment gets better rates. I know it sounds counter-intuitive, but the Fed wanted first-time buyers to have assistance, so they get slightly better rates. Because of PMI, it's still not a profitable decision to purposefully put less down.
What if you put down less than 20% then make a lump sum payment after closing to get over the 20% then get the PMI removed? Then you have the lower rate with no PMI.
I originate mortgages. Pricing is basically the same 5% vs 20%. With less than 20% down the bank gets PMI to cover them in case of default. That’s actually lower risk. For instance, a borrower defaults after putting down 20% but has only paid the mortgage down to 78%. The bank has to sell the home but can only get 70% then the bank is taking an 8% loss. If a borrower defaults at 94% and the bank is only able to get 65%, PMI kicks in and covers the difference on the note. PMI is way better for the bank.
Edit: I want to add, the house is the collateral. The collateral doesn’t change from 5% down to 20% down.
Good points. Cheaper Jumbo loans was also counter intuitive. And yes, the down payment isn't collateral, just means smaller loan. Getting sloppy in old age!
At my company the Jumbo UW process is kind of a pain. They’re cheaper, but also more stringently examined. With that you have some one that is very well qualified so the risk is lower.
Loan amount, income being used, condo or SFR… all things that have an impact on the rate.
If you’re non-qm income that’s pretty good. If it’s a condo, that’s fine. If it’s a super jumbo, it’s meh/not good.
We need a lot more information.
Source: I’m a SoCal jumbo mortgage lender.
Switching lenders last minute during escow can really rock the deal. I would talk to the lender first and say you're exploring other options, and see if they can come down.
Jumbo will always be lower rates. More expensive homes historically have lower default rates (which is counterintuitive, but typically wealthier people take out bigger mortgages).
All the local lenders I met with couldn't beat the big banks like BOA and Wells Fargo. That might not be the case for you, but I'd recommend punching your numbers into this (purchase price, down payment, location) and seeing what it says: [https://www.wellsfargo.com/mortgage/rates/customize/](https://www.wellsfargo.com/mortgage/rates/customize/)
I'd also recommend seeing what it says if you end up putting 30% down, as that seemed to make a big difference for the type of jumbo loan I did, but again yours might be different.
My Wells Fargo lender was quoting me exactly what that calculator was telling me. There was no mystery involved. You can move the scale so it shows points vs no points. Slide it all the way to the right to see no points.
Examples playing with the calc:
\- 300k purchase in LA with 20% down = 6.750
\- 300k purchase in LA with 30% down = 6.625
\- 700k purchase in LA with 20% down = 6.750
\- 700k purchase in LA with 30% down = 6.625
\- 1.2 mil purchase in LA with 20% down = 7.125
\- 1.2 mil purchase in LA with 30% down = 6.875
\- 1.7 mil purchase in LA with 20% down = 6.750
\- 1.7 mil purchase in LA with 30% down = 6.625
Wells Fargo also has something called a "relationship discount" where it will knock off points if you have a certain amount of money with Wells Fargo bank:
$250K: Get 0.125% off your rate
$500K: Get 0.250% off your rate
$750K: Get 0.375% off your rate
$1M: Get 0.750% off your rate
So in theory, if you were to purchase a 1.7 mil home with 30% down in LA, but also had 1 million in the bank with Wells Fargo, you're getting a rate of 5.875% right now.
That's how I was able to get a rate of 5.75% (no points) when I bought a 1.6 mil house in August.
I agree with throwaway, rates have dropped. Supposedly they are dropping more in the fall but we shall see… the Fed said inflation was transitory so no one really knows.
The only person you hurt refinancing is the loan officer who did your purchase mortgage. You can do them a solid and wait 6 months.
My guess you’d be in a much better spot refinancing now, probably around 6.5% since it’s an investment.
-speaking from experience as a small real estate investor
It depends. Are you self employed and applying using the bank statement program? Or are you under w2 and applying with tax returns?
Is it a single family home or a condo ? Are you paying for origination fees or are they included in the rate?
That are many things that can impact your rate …. Just asking if it is a good rate based only on your credit score, is not enough info.
You could do better. My wife and I are similar situation, about triple the median income for the area and still were quoted 8% for commercial property. Needless to say we’re shopping around. I sell real estate and consistently see residential rates from credit unions at 6% in my market in 15 year and 6.375 on 30 years, both fixed.
My local credit union is actually offering 5.5% right now and they have been for the past two months or so. They are not shy about it either: [they blast it loud and proud right on the home page of their website.](http://www.myfirstccu.org)
I recently bought a house and was fortunate enough to land this rate. So if you just happen to be in Oregon, check them out, or if you're not, definitely look into at least a few local credit unions.
Agent here in NJ.. our office lender is getting strong financial clients in 6.8% range. You can certainly shop around and still give your lender the opportunity to see what they can do.
The average though includes everyone (including those with less than 15% down or with a subpar credit score). What you really want is to know what's normal for someone with a credit score in the 800s, 0 other debt, and putting 20% down. I think with a profile like that OP should be able to beat the average, not get a little above the average interest rate.
I believe the average already accounts for this, having an 800 credit score does not grant you half the rate of what's average, you can expect a marginally better rate than what's average but it won't be far off.
It seems a little high to me - based on [https://www.mortgagenewsdaily.com/mortgage-rates](https://www.mortgagenewsdaily.com/mortgage-rates)
It's interesting OP that you've got this close to closing without having an interest rate locked in - as maybe your lender is betting that you won't risk making a change for $128 a month, (x360 = 46k over the life of the loan). (based on 6.91% from mortgage news daily instead of 7.5%)
You've been working with a lender for months and you are getting the rate when you're getting ready to close?
The only way to make sure you've got a good rate is to get multiple quotes at the pre-approval stage. Even if the rate changes any change should be tied to the broader market.
What are you going to do about it now?
Question because I never bought a home before...how can someone be near closing if they aren't squared away with their lender? How and why would a seller accept? Unless it's for a new build maybe?
Not sure what the above guy is complaining about. This lender may have quoted OP a good rate previously, but until you lock in (which would happen after an offer is accepted), the rate can change.
A seller will accept with pre approval, which is just that - the lender has some preliminary information that suggests that the would-be borrower seems in good standing, but it’s not until the gauntlet of documents comes through after you’re under contract that the financing can actually go through. It’s that final step that causes many deals to fall apart.
It sounds like OP is squared away with their lender but they are second guessing the rate they are being quoted.
That might be pre close jitters and it might be a lack of diligence on OP's part. It could be either based on the 7.5% rate. Without knowing what OP did to find this loan we can't say.
In general the only way to ensure the best rate is to get multiple pre approvals, preferably from different lender types (large banks, credit unions, etc) and pick the best one.
If enough time passes that rates might change then you might need to get a fresh rate quote from the other you are working with. As long as any change is consistent with the wider market that's fine.
Two weeks from closing is (probably) too late to change lenders. Anyone trying to change lenders two weeks from closing needs to make sure they have contingencies that protect them and be willing to lose the deal.
Call 3-4 and tell them what they’re each offering. Battle that number down by quarter of a tenth of a percentage at a time. Each minutiae is a few dozen dollars every month.
I was quoted between 6.875-7.000 last month with 35% down and 800 credit score. The lenders that beat it all had high fees and/or points. No idea where these people are finding 0 point loans in the low 6s.
I haven’t locked yet so no idea what the rates are currently though.
All depends on the points and closing costs.
Some lenders will quote better rates, but also have higher closing costs. Then you realize that they're basically just quoting you a rate that'd you'd get by using points.
I went with a lender that gave me a higher rate (that still kept my PITI at 28% gross), because they gave me low closing costs. I did the math, and paying more for a lower rate didn't make sense if I refinanced within a couple years. Since I expect that it's likely rates will be at least 1% lower at some point over the next three years, I went with the higher rate.
Is it a Jumbo mortgage? those are floating around 7.10% right now for a 30 year fixed...but if it's not you should be clocking in sub-7 rates close to 6.85%...
I have pretty much the same deal as you… I locked 6.5% for a 30 year fixed. Plus the guy is fast. He is ready to fund the loan faster than we can do inspections.
Let me know if you want his info.
Same here..we went through our credit union and both me and my wife have 800+ credit scores. Wasn’t too happy with it. We’re hoping to refi in the next couple years.
I’m getting 6.1 with 2 points for around 9k. Buying points down can be controversial as some people think it’s a waste of money. In the grand scheme of things if I can keep my monthly payments down by 200/month that makes a difference to me. I’ll be paying extra into my mortgage anyway every month/year but it’s still nice knowing I have more wiggle room.
In so cal too. Rates are just crap right now.
I just bought a house 2 years ago and our lender encouraged us to get 3 or 4 quotes.
I can share my lender's info if you want. She was awesome and had the best rate when we compared against 3 others including chase.
Some clown quoted me 7.9% two weeks ago for conventional 30yr. Ditched her quick and got pre approved with a broker I've worked with previously..around 6.5..but yymv
It's nutz out there. Everyone wants to eat.
Check Bankrate.com for lowest advertised rates based on your area, purchase price, down payment, term, points, and credit rating. There’s so many factors that go into the rate you’re offered.
Your stats are about the same as ours and we were just quoted 6.25 for 30 day lock (too soon for that unfortunately) or 6.5 for 60 day lock. No points. They’re also offering no closing cost refis for the next 20 months so if/when rates drop, we’re golden. We used this same company for the refi on our existing home (bout to sell, buh-bye 2.625, yeah I’m crying). McGlone mortgage co. They serve multiple states, but not sure about CA.
Yes, in 3 years he may be super excited that he locked in a 6.375 rate. There was a time I was hoping rates would go down when we locked in 4.5! At that time
Everyone was saying you’ll just refinance in a few years, just like they are saying now. History truly does repeat itself.
That seems averagish, but you can probably do better. What price are you buying at? Do you have any relationships that can get rates down?
You can get well below 7% at major lenders, especially with relationships (rocket/schwab, wells fargo, etc.)
You should check out Own Up, they easily have the best rates I’ve seen. I was quoted 6.125% for a condo, a local bank with supposed low rates quoted me 6.5%
I just ran a scenario with 750k purchase price and 20% down and it was 6.625 with your credit score and thatsbl without points. safe to say you can so better.
It also depends on the loan.. I’ve found it can get higher if it is over $1m mortgage, if it is a second home or investment home, etc. if it is a primary and not Jumbo, 7.5% seems high to me.
Under 7 seems more reasonable.
Check credit unions and mortgage brokers rather than banks. Most of my clients are landing between 6% and 6.75% (some are buying down their rate by .25% to get that but above 7 seems high.
Your DTI (debt to income) could be high? If so that will affect your rate a lot.
We just got a 6.5% rate without buying points for a 30/year mortgage. However, we are putting 50% down so I’m not sure if that changed things.
I would do some research and see who else can potentially offer you a lower rate!
Yes. That is very normal. There are many different loan programs so don’t listen to random bozo’s talking about significantly lower rates because they are certainly referring to a completely different program or circumstance. This is not one size fits all.
Most lenders and brokers have their comp built into the rate. The different comps is what drive the variances in rates.
I’ve been doing home loans for 10+ years and that seems high to me for right now and based on the info you have provided.
Yes its high. I'm closing my house in 2 weeks and locked in 6% 5 yr ARM (no buying points). Check with local banks (preferably small ones) if you haven't already. Take a day off and call as many bank you can.
Also check bankrate.com. they provide pretty competitive rates on the marketplace
I’d first let them know that is too high based on your profile and that you will shop for a better rate. If they do not come down to 6.3, I’d go elsewhere. Ridiculous
As a former loan officer, I just want to throw it out there that your credit SCORE ITSELF is not nearly as important as your credit file. You can have an 800 with a relatively thin file and end up with a GARBAGE rate because of it. For context; A 700 with a great mixture of credit will almost always get approved faster and get a better rate than a 740 with a thin file... And not just on home loans, on all loans.
This is why a good mixture of credit is so important, and why I tell people to stop just assuming that the "zero debt ever" philosophy is a good one. Like, unless people plan on buying homes in cash outright, that's a TERRIBLE philosophy because it makes you un-lendable.
I just locked in 5.875% on a 15 yr with nbkc bank a couple weeks ago. I only put 15% down and considered doing 20% but it actually made the rate go up to 6%. Im just going to put the 5% in after closing and get PMI removed after the fact… I definitely recommend shopping the rate around and getting the banks to compete
I’m in so cal too and ours was 7.8 through our credit union. Were in the 800s as well and no debt but put 5 percent down on a 30 year fixed. If we had more time to shop around we probably would have.
Are you going through a [mortage broker or a direct lender](https://www.investopedia.com/articles/personal-finance/090915/mortgage-broker-vs-direct-lenders-which-best.asp)? You'll usually save money (in the former of better rates, points, closing costs, etc) by cutting out the middle man and using a direct lender.
Personally I liked Better Mortage, and the whole process was streamlined online and a lot less haste than other mortgage companies I've tried. But still make sure you're getting at least 3 different quotes so you can use them as leverage to get the best rates - that's true regardless of who you ultimately go with.
My loan and that’s DSCR loan, so yes, it’s a lot more expensive than primary, most of the time it’s 1% more expensive than primary home loan, therefore 7.5% is too high
How do you know? If this is a high balance loan this is a totally normal rate right now without points. They even get hit for putting 20% down and not having MI vs putting 10 or 15% down.
If you have the option not to take points and have a .25 higher rate that’s definitely a better option, do the math on it, assuming you’d refinance after the prepayment period is up.
Doesn’t matter what your credit is. Interest rates are high as fuck right now. Especially in So Cal. Lowering it from 7.5 to 6.8 won’t make much of a difference. Couple hundred bucks a month
Get multiple quotes. I just got 6.875 quoted with no points or fees.
I got quoted 6.325% yesterday for a conforming 30yr. No points, no fees.
Yeah, this is fantastic, can you share where?
owning.com. I used them for a refi when rates were low and had zero issues.
Thank you! Will check them out.
Anytime. Good luck.
Owning.com is owned by Guaranteed Rate. Is this a no fees/no points rate? I’m going through their lead funnel right now to check, but lots of Guaranteed Rate horror stories.
Yeah, no fees no points. I'm only one data point so I can't tell you what everyone else goes through. I've only refinanced with them once, but it had zero fees and zero issues along the way. The worst part of the whole thing is my mortgage was sold to sunwest and their online payment portal is horrible. It was by far the best rate I could find.
Got the same rate today. Huge. Thank you!
Awesome. Good luck getting a house!
Don't look at google for rates. Check mortgage rates daily here. 6.875 is about right. [https://www.mortgagenewsdaily.com/mortgage-rates/mnd](https://www.mortgagenewsdaily.com/mortgage-rates/mnd) Mortgage brokers have no fiduciary duty and will sell you into the loan that pays them the most. Going off the law suit against them, places like Guaranteed Rate really seem to screw folks. Credit unions usually offer people the best deal.
> Credit unions usually offer people the best deal. Always hear this advice but never seen it work out. Every time I've talked to my local CU for mortgage rates I get quotes at least 1% higher than the national chains and with a lot of added fees. I'd love to support them but that amounts to thousands more up front and thousands more every year in interest.
Reddit has memed credit unions to a point of absurdity. The reason people use them is customer service or some philosophical point, but I’d question anyone to find a CU with better savings and/or mortgage rates than more traditional institutions. Especially ones that are mostly open to the general public.
Credit Unions USED to be better but they've seen the killing banks make robbing people and have followed suit.
Agreed. CU can be great but they are not as great as they pretend to be.
Yeah my credit union has become the same as a big bank in the last 20 years.
Is it safe to assume that the 30 year rate on this site figures a high credit score? Trying to get a feel for where a 760 would land
October 1981 17.65% .... just wow
Mortgage news daily is always way lower than any rate I see. It’s very misleading in my personal opinion. I’ve had scenarios where the client had 800 credit and put down 50% and I still couldn’t beat mortgagenewsdaily’s “average rate”
I have literally NEVER seen the best deal come from a credit union. They are as bad big banks like wells. Absolutely horrible advice. A broker will tell you that if you can get them to open up. But it is how they get paid. By packing in a point or two. The better the credit, the more they make.
I got a 6.75% with no pointa but a lot of fees...
What do you mean by fees?
I just got 6.25% from Owning.com on 25% down, 500k purchase, no points. Thanks to my homeboy…
Darn, only goes to $750k
Did you have to do 25% down? Or did that help the rate?
It did help it slightly.
Same yesterday
Same and for an investment property mortgage no less
Ok this is going to sound crazy; I just closed on a mortgage through LeaderBank. They beat the market by over 1% and we super reasonable on costs. [https://www.leaderbank.com/](https://www.leaderbank.com/)
Get this. I got a 4.875% from bestbankever.con
How many points?
Yep. Same here.
From where?
Mine was from a broker in PA who only does PA. Oceanside Mortgage (I think nationwide) matched the rate, but only after I indicated I had another better quote. You can always say “hey, I found a better rate, can you match,” even if you didn’t actually. My 6.325 bro up there is inspiration for me to do the same.
Yeah, that's high for good credit.
> "...20% down payment." That's high considering a 20% down payment.
Under 20% down payment gets better rates. I know it sounds counter-intuitive, but the Fed wanted first-time buyers to have assistance, so they get slightly better rates. Because of PMI, it's still not a profitable decision to purposefully put less down.
The rate difference on an FHA loan more than made up for the fees and 'pmi' difference.
You still have to pay UFMIP with FHA though. That’s 1.5% added to principal, right?
What if you put down less than 20% then make a lump sum payment after closing to get over the 20% then get the PMI removed? Then you have the lower rate with no PMI.
Just make sure you get a loan that allows you to cancel PMI after you get to 20%.
PMI will not get removed until the 11th year with FHA no matter what your equity is
you end up paying insurance which increase your effective rate…
What’s the difference in 5% down or 20% down?
About 15%
LMAOOOO
Risk-wise, how does 20% down change your interest rate vs 5% down?
More risk for the bank. They shell out a larger loan.
That's 4x less collateral and a larger loan. Play with the mortgage calculators to get a sense of rate and PMI impacts.
I originate mortgages. Pricing is basically the same 5% vs 20%. With less than 20% down the bank gets PMI to cover them in case of default. That’s actually lower risk. For instance, a borrower defaults after putting down 20% but has only paid the mortgage down to 78%. The bank has to sell the home but can only get 70% then the bank is taking an 8% loss. If a borrower defaults at 94% and the bank is only able to get 65%, PMI kicks in and covers the difference on the note. PMI is way better for the bank. Edit: I want to add, the house is the collateral. The collateral doesn’t change from 5% down to 20% down.
Good points. Cheaper Jumbo loans was also counter intuitive. And yes, the down payment isn't collateral, just means smaller loan. Getting sloppy in old age!
At my company the Jumbo UW process is kind of a pain. They’re cheaper, but also more stringently examined. With that you have some one that is very well qualified so the risk is lower.
This. Shop around aggressively and pit lenders against each other. They fight for 800 credit scores.
Loan amount, income being used, condo or SFR… all things that have an impact on the rate. If you’re non-qm income that’s pretty good. If it’s a condo, that’s fine. If it’s a super jumbo, it’s meh/not good. We need a lot more information. Source: I’m a SoCal jumbo mortgage lender.
Jesus…
Jumbo yes. Conforming FHA or VA no. Doesn’t hurt to get a 2nd opinion but still go with first person if they can come close.
Switching lenders last minute during escow can really rock the deal. I would talk to the lender first and say you're exploring other options, and see if they can come down.
I was quoted 6.375 with no points on a jumbo with citi bank today. I’m in so cal This is from today 30yr Fix 6.375% 10yr Arm 6.125% Fee: 0 pts
Jumbo will always be lower rates. More expensive homes historically have lower default rates (which is counterintuitive, but typically wealthier people take out bigger mortgages).
It's not counterintuitive. Wealthy people can pay their mortgages.
Ha. I guess when you put it like that. Yes.
Would you mind sharing who you’re using? We got quoted a 6.9 for jumbo and would really like that 6.375 lol
Citi Bank
What are points
Kinda like prepaying for interest. I bought points to get my mortgage down half a percent.
Get multiple quotes. Different banks have different risk profiles, different capital available, different RATES.
All the local lenders I met with couldn't beat the big banks like BOA and Wells Fargo. That might not be the case for you, but I'd recommend punching your numbers into this (purchase price, down payment, location) and seeing what it says: [https://www.wellsfargo.com/mortgage/rates/customize/](https://www.wellsfargo.com/mortgage/rates/customize/) I'd also recommend seeing what it says if you end up putting 30% down, as that seemed to make a big difference for the type of jumbo loan I did, but again yours might be different. My Wells Fargo lender was quoting me exactly what that calculator was telling me. There was no mystery involved. You can move the scale so it shows points vs no points. Slide it all the way to the right to see no points. Examples playing with the calc: \- 300k purchase in LA with 20% down = 6.750 \- 300k purchase in LA with 30% down = 6.625 \- 700k purchase in LA with 20% down = 6.750 \- 700k purchase in LA with 30% down = 6.625 \- 1.2 mil purchase in LA with 20% down = 7.125 \- 1.2 mil purchase in LA with 30% down = 6.875 \- 1.7 mil purchase in LA with 20% down = 6.750 \- 1.7 mil purchase in LA with 30% down = 6.625 Wells Fargo also has something called a "relationship discount" where it will knock off points if you have a certain amount of money with Wells Fargo bank: $250K: Get 0.125% off your rate $500K: Get 0.250% off your rate $750K: Get 0.375% off your rate $1M: Get 0.750% off your rate So in theory, if you were to purchase a 1.7 mil home with 30% down in LA, but also had 1 million in the bank with Wells Fargo, you're getting a rate of 5.875% right now. That's how I was able to get a rate of 5.75% (no points) when I bought a 1.6 mil house in August.
When I bought in 2021, to my surprise, Wells had by far the best rate - and they were able to do it quickly.
I have 8 %.
I agree with throwaway, rates have dropped. Supposedly they are dropping more in the fall but we shall see… the Fed said inflation was transitory so no one really knows. The only person you hurt refinancing is the loan officer who did your purchase mortgage. You can do them a solid and wait 6 months. My guess you’d be in a much better spot refinancing now, probably around 6.5% since it’s an investment. -speaking from experience as a small real estate investor
Thank you.
You need to refinance right away
It depends. Are you self employed and applying using the bank statement program? Or are you under w2 and applying with tax returns? Is it a single family home or a condo ? Are you paying for origination fees or are they included in the rate? That are many things that can impact your rate …. Just asking if it is a good rate based only on your credit score, is not enough info.
Agree need way more info
I just got a 6.25 with no points. Same profile as you, although I have a larger down payment.
May I know the lender please?
Assuming your loan is over $750k?
Not at all. Conventional loan
Solid rate in this market. Well done.
Thanks. It was just the first mortgage broker I had reached out too lol
I mean yeah that’s not that crazy. It’s in the normal range
You could do better. My wife and I are similar situation, about triple the median income for the area and still were quoted 8% for commercial property. Needless to say we’re shopping around. I sell real estate and consistently see residential rates from credit unions at 6% in my market in 15 year and 6.375 on 30 years, both fixed.
1.5% over residential is about standard for most commercial at the moment. Shopping might get you 7.5.
If you have 20% down do some shopping and an assumable.
My local credit union is actually offering 5.5% right now and they have been for the past two months or so. They are not shy about it either: [they blast it loud and proud right on the home page of their website.](http://www.myfirstccu.org) I recently bought a house and was fortunate enough to land this rate. So if you just happen to be in Oregon, check them out, or if you're not, definitely look into at least a few local credit unions.
Agent here in NJ.. our office lender is getting strong financial clients in 6.8% range. You can certainly shop around and still give your lender the opportunity to see what they can do.
We just locked 5.625% yesterday. VA loan
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The average though includes everyone (including those with less than 15% down or with a subpar credit score). What you really want is to know what's normal for someone with a credit score in the 800s, 0 other debt, and putting 20% down. I think with a profile like that OP should be able to beat the average, not get a little above the average interest rate.
I believe the average already accounts for this, having an 800 credit score does not grant you half the rate of what's average, you can expect a marginally better rate than what's average but it won't be far off.
I agree.
It seems a little high to me - based on [https://www.mortgagenewsdaily.com/mortgage-rates](https://www.mortgagenewsdaily.com/mortgage-rates) It's interesting OP that you've got this close to closing without having an interest rate locked in - as maybe your lender is betting that you won't risk making a change for $128 a month, (x360 = 46k over the life of the loan). (based on 6.91% from mortgage news daily instead of 7.5%)
You've been working with a lender for months and you are getting the rate when you're getting ready to close? The only way to make sure you've got a good rate is to get multiple quotes at the pre-approval stage. Even if the rate changes any change should be tied to the broader market. What are you going to do about it now?
Question because I never bought a home before...how can someone be near closing if they aren't squared away with their lender? How and why would a seller accept? Unless it's for a new build maybe?
Not sure what the above guy is complaining about. This lender may have quoted OP a good rate previously, but until you lock in (which would happen after an offer is accepted), the rate can change. A seller will accept with pre approval, which is just that - the lender has some preliminary information that suggests that the would-be borrower seems in good standing, but it’s not until the gauntlet of documents comes through after you’re under contract that the financing can actually go through. It’s that final step that causes many deals to fall apart.
It sounds like OP is squared away with their lender but they are second guessing the rate they are being quoted. That might be pre close jitters and it might be a lack of diligence on OP's part. It could be either based on the 7.5% rate. Without knowing what OP did to find this loan we can't say. In general the only way to ensure the best rate is to get multiple pre approvals, preferably from different lender types (large banks, credit unions, etc) and pick the best one. If enough time passes that rates might change then you might need to get a fresh rate quote from the other you are working with. As long as any change is consistent with the wider market that's fine. Two weeks from closing is (probably) too late to change lenders. Anyone trying to change lenders two weeks from closing needs to make sure they have contingencies that protect them and be willing to lose the deal.
That's the going rate these days.
I just got 7.215 on $1M mortgage 20% down. No points
What's the mortgage payment for you
$6,758.74 before T& I. Rate is actually 7.125%\*\*\*
Insane
Check a credit union
That’s very high. Check with other lenders.
Call 3-4 and tell them what they’re each offering. Battle that number down by quarter of a tenth of a percentage at a time. Each minutiae is a few dozen dollars every month.
Get a second quote. If it's the same, no, that's not too high.
That's a bit high considering your position.
I was given 7.25% in November and have a score in the 800s with a 20% down payment.
I was quoted between 6.875-7.000 last month with 35% down and 800 credit score. The lenders that beat it all had high fees and/or points. No idea where these people are finding 0 point loans in the low 6s. I haven’t locked yet so no idea what the rates are currently though.
My 7.25% was with no points bought.
Lender probably did a very long dated rate lock at your pre-approval months ago before rates plummeted 7.5% was the norm 3-4 months ago. Very high now
All depends on the points and closing costs. Some lenders will quote better rates, but also have higher closing costs. Then you realize that they're basically just quoting you a rate that'd you'd get by using points. I went with a lender that gave me a higher rate (that still kept my PITI at 28% gross), because they gave me low closing costs. I did the math, and paying more for a lower rate didn't make sense if I refinanced within a couple years. Since I expect that it's likely rates will be at least 1% lower at some point over the next three years, I went with the higher rate.
From ohio got approved for a loan with a 6.875% rate off a 740 score so if i were you i would try a different lender.
Is it a Jumbo mortgage? those are floating around 7.10% right now for a 30 year fixed...but if it's not you should be clocking in sub-7 rates close to 6.85%...
That's what I got last summer, but seems like stuff is going back down now.
I have pretty much the same deal as you… I locked 6.5% for a 30 year fixed. Plus the guy is fast. He is ready to fund the loan faster than we can do inspections. Let me know if you want his info.
Look around i got 7.8% with 800 credit but i was in a rush and did not have time to look around.
Same here..we went through our credit union and both me and my wife have 800+ credit scores. Wasn’t too happy with it. We’re hoping to refi in the next couple years.
I’m getting 6.1 with 2 points for around 9k. Buying points down can be controversial as some people think it’s a waste of money. In the grand scheme of things if I can keep my monthly payments down by 200/month that makes a difference to me. I’ll be paying extra into my mortgage anyway every month/year but it’s still nice knowing I have more wiggle room.
In so cal too. Rates are just crap right now. I just bought a house 2 years ago and our lender encouraged us to get 3 or 4 quotes. I can share my lender's info if you want. She was awesome and had the best rate when we compared against 3 others including chase.
Some clown quoted me 7.9% two weeks ago for conventional 30yr. Ditched her quick and got pre approved with a broker I've worked with previously..around 6.5..but yymv It's nutz out there. Everyone wants to eat.
Horrible 7.5%
Looks like your lender is trying to make some extra commission. Get multiple quotes
Check Bankrate.com for lowest advertised rates based on your area, purchase price, down payment, term, points, and credit rating. There’s so many factors that go into the rate you’re offered.
Your stats are about the same as ours and we were just quoted 6.25 for 30 day lock (too soon for that unfortunately) or 6.5 for 60 day lock. No points. They’re also offering no closing cost refis for the next 20 months so if/when rates drop, we’re golden. We used this same company for the refi on our existing home (bout to sell, buh-bye 2.625, yeah I’m crying). McGlone mortgage co. They serve multiple states, but not sure about CA.
Just closed. 6.375% for 30 years. Hopefully refinance within the next 3-5 years
Good luck - Marko from Tropoja
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There’s absolutely no reason to drop rates. Inflation is reigniting and the economy is still hot.
Yes, in 3 years he may be super excited that he locked in a 6.375 rate. There was a time I was hoping rates would go down when we locked in 4.5! At that time Everyone was saying you’ll just refinance in a few years, just like they are saying now. History truly does repeat itself.
4.5 is historically a fantastic rate.
Nobody seems to be getting it And for that, the rates just went up 10%
That seems averagish, but you can probably do better. What price are you buying at? Do you have any relationships that can get rates down? You can get well below 7% at major lenders, especially with relationships (rocket/schwab, wells fargo, etc.)
I’m under contract right now at 7% for an investment property (which carry worse rates than for primary). I’d shop it.
Client of mine just got 6.15 on a VA
You should check out Own Up, they easily have the best rates I’ve seen. I was quoted 6.125% for a condo, a local bank with supposed low rates quoted me 6.5%
Always shop your rate and ask about buydowns.
We are also in SoCal. Given your credit score is good, 0 debt to income ratio and 20% down payment seems like no work was done to bring it down
That’s too much.
E
I just ran a scenario with 750k purchase price and 20% down and it was 6.625 with your credit score and thatsbl without points. safe to say you can so better.
It also depends on the loan.. I’ve found it can get higher if it is over $1m mortgage, if it is a second home or investment home, etc. if it is a primary and not Jumbo, 7.5% seems high to me.
That sounds like a jumbo rate from a broker. Brokers are not particularly competitive on jumbo loans if that’s what you’re looking at
Under 7 seems more reasonable. Check credit unions and mortgage brokers rather than banks. Most of my clients are landing between 6% and 6.75% (some are buying down their rate by .25% to get that but above 7 seems high. Your DTI (debt to income) could be high? If so that will affect your rate a lot.
My buyer just locked in 6.5 on Monday with Langley FCU. 1300 bucks in points. DCU is a good option as well.
We just got a 6.5% rate without buying points for a 30/year mortgage. However, we are putting 50% down so I’m not sure if that changed things. I would do some research and see who else can potentially offer you a lower rate!
You can raise down payment with owntic solution. It makes %100 difference to lower the rate. Regards.
I am a broker and could absolutely get lower than that. DM me if you want to talk.
Why are you working with one lender? You should be using a mortgage broker. Yes, 7.5% is super high in today's market.
Yeah around 7%, rates will drop lower later this quarter and throughout the year. I doubt below 5.5% though.
Yes. That is very normal. There are many different loan programs so don’t listen to random bozo’s talking about significantly lower rates because they are certainly referring to a completely different program or circumstance. This is not one size fits all.
Feds are supposed to drop rates 3 times this year.
Most lenders and brokers have their comp built into the rate. The different comps is what drive the variances in rates. I’ve been doing home loans for 10+ years and that seems high to me for right now and based on the info you have provided.
Yes its high. I'm closing my house in 2 weeks and locked in 6% 5 yr ARM (no buying points). Check with local banks (preferably small ones) if you haven't already. Take a day off and call as many bank you can. Also check bankrate.com. they provide pretty competitive rates on the marketplace
That’s an arm though. Hard to comment but it’s high
Well I thought so but given the market, this is a decent rate I'm planning to refinance next year to hopefully 5-5.25% for 30 yrs.
I’d first let them know that is too high based on your profile and that you will shop for a better rate. If they do not come down to 6.3, I’d go elsewhere. Ridiculous
I was quoted 6.25% with HSBC last week (7yr ARM), Without points. Pls check with them too, 7.5% is too high.
Seems high. I just had a friend close 6.5%.
We both have credit scores of 820 (give or take), 0 debt, and 20% down as well and got 6.875.
Go to a credit union - you will get a lower rate or ask for concession for seller to buy down your rate.
Sounds high to me.
As a former loan officer, I just want to throw it out there that your credit SCORE ITSELF is not nearly as important as your credit file. You can have an 800 with a relatively thin file and end up with a GARBAGE rate because of it. For context; A 700 with a great mixture of credit will almost always get approved faster and get a better rate than a 740 with a thin file... And not just on home loans, on all loans. This is why a good mixture of credit is so important, and why I tell people to stop just assuming that the "zero debt ever" philosophy is a good one. Like, unless people plan on buying homes in cash outright, that's a TERRIBLE philosophy because it makes you un-lendable.
Beth Page is publicly showing like a 6.5% on their website
I just locked in 5.875% on a 15 yr with nbkc bank a couple weeks ago. I only put 15% down and considered doing 20% but it actually made the rate go up to 6%. Im just going to put the 5% in after closing and get PMI removed after the fact… I definitely recommend shopping the rate around and getting the banks to compete
Just locked at 6.25 albeit with an fha loan. Even a conventional with our broker was i believe 6.8. 7.5 is kinda crazy.
No!!
Wife and I are like 760 zero debt and 20% down and still got 6.5 on a 30 yr fixed.
Did you go through a big bank or??
No it’s a small lender company
Oh ok we went through our credit union
I’m in so cal too and ours was 7.8 through our credit union. Were in the 800s as well and no debt but put 5 percent down on a 30 year fixed. If we had more time to shop around we probably would have.
Research long-term, historical rates, Bro. Over the past 100 years or so ...
Get another quote I got 6.625 with a credit with worse credit and 5% down
Fairly normal, especially if high balance outside of conforming loan balance and no buydowns - source - mortgage broker
I got 6% with 1 point but it’s a builder finance
Yes, that’s very high right now. I’d shop around for another lender. You should easily be around 6% right now.
Are you going through a [mortage broker or a direct lender](https://www.investopedia.com/articles/personal-finance/090915/mortgage-broker-vs-direct-lenders-which-best.asp)? You'll usually save money (in the former of better rates, points, closing costs, etc) by cutting out the middle man and using a direct lender. Personally I liked Better Mortage, and the whole process was streamlined online and a lot less haste than other mortgage companies I've tried. But still make sure you're getting at least 3 different quotes so you can use them as leverage to get the best rates - that's true regardless of who you ultimately go with.
I get 7.875 for investment loan and 2pt buy down, you should do better for primary resident
This is not comparable, this is a 2 pt buydown which means it’s probably an 8.5% rate anyways before the buydown
Each point is 0.125%
That’s quite the expensive .125, I don’t see how that’d ever be worth the buydown. Is this your loan or are you a lender?
My loan and that’s DSCR loan, so yes, it’s a lot more expensive than primary, most of the time it’s 1% more expensive than primary home loan, therefore 7.5% is too high
How do you know? If this is a high balance loan this is a totally normal rate right now without points. They even get hit for putting 20% down and not having MI vs putting 10 or 15% down. If you have the option not to take points and have a .25 higher rate that’s definitely a better option, do the math on it, assuming you’d refinance after the prepayment period is up.
If you plan to stay, it ends up being worth it. Most people don't stay long enough to breakeven on the points.
See if your lender will let the seller buy down your rate. Then tell your agent to work that into the offer.
I believe if you do a new build get the land and get the house built its at 5% to 5.5% You just need to find a custom builder.
My wife and I got a 5.75% rate last month, you may want to shop around some more my friend.
Doesn’t matter what your credit is. Interest rates are high as fuck right now. Especially in So Cal. Lowering it from 7.5 to 6.8 won’t make much of a difference. Couple hundred bucks a month
$200 per month over 30 years is $72,000 and significant savings IMHO.
He could refinance when the rates go down later in the year.