super low mortgage rate...

[OhMan]

Hi, all:

Just got a email from aapexmortgage.com and they quoted me with the following mortgage rate:

30yr Jumbo - 5.5% w/ 0 points
15yr Jumbo - 4.875% w/ 0 points
3yr Jumbo Arm - 3.5% w/ 0 points
5yr Jumbo Arm - 4.250% w/ 0 points

I'm not sure about their APR though...

This seems to be VERY competitive, any experience dealing with this mortgage company?? Any thoughts or comments?? Any other even better deals out there for 5yr Jumbo ARM? Thanks!

 

[huesmann]

Yeah don't forget about closing costs. $$$

 

[daddio1949]

Your 5.5% for a 30 year fixed is just a warm deal. That rate is already available by others. I often visit loanfax.com, which posts rates daily for many brokers. So, since this rate is avaiable elsewhere, I would look at the closing costs, which can vary considerably.

Daddio1949

 

[Superdoopercooper]

Those seem like pretty good rates for JUMBO!!! Dang, you have a house worth more than $322k? :Q

 

[toant103]

Originally posted by: huesmann
Yeah don't forget about closing costs. $$$

 

[ChiefBrody]

Actually, at todays rates. This is luke warm at best. But thanks anyway.

 

[Salvador]

I got a guy on the corner named Vinnie that will give me a really cheap loan. The problem is that if I don't pay it back, they start with my fingers and then move onto my knee's.

Sal

 

[Budmantom]

Originally posted by: Salvador
I got a guy on the corner named Vinnie that will give me a really cheap loan. The problem is that if I don't pay it back, they start with my fingers and then move onto my knee's.

Sal

15% isn't low

 

[Kwad Guy]

I don't know about today, but on Tuesday, when I went through the hoops of finding the best mortgage, I got the following:

30 year conforming:

5 7/8, 0 points, 0 closing costs, $800 cash back at closing.

If I wanted to pay $2500 in closing costs, I could have gotten 5.5 (for my purposes, I wanted a total no cost loan).

This was through priceline.com mortgage, who I found a lot more pleasant than almost anyone else, incidentally.

A lot of the low rates you find quoted in non-binding documents (and mortgage comparison charts, etc.) are COMPLETELY BOGUS COME-ONS. When you actually try to get the quoted rate, you'll find it doesn't exist, or that there are totally unreasonable charges associated with the loan. If you haven't done this before, you may not believe me. But once you start trying to get some of those come-on rates, you'll learn. Be sure to compare apples to apples and look carefully at ALL the costs in closing a loan.


Kwad

 

[XCLAN]

Originally posted by: Salvador
I got a guy on the corner named Vinnie that will give me a really cheap loan. The problem is that if I don't pay it back, they start with my fingers and then move onto my knee's.

Sal

dont do it....
he allready put me in a wheelchair...and he slapped my grandma....he's not a nice guy

 

[Boiler]

Sal is a sissy since you are still alive and probably kept the money!

 

[sirfergy]

$322k is actually a very normal house price in Los Angeles. If you want to live in a decent neighborhood, you'll pay upwards of $400k. It's actually quite sad.

 

[SCSIfreek]

500K is the normal house price for a home in Northern California (Bay Area) . Depressing to see.

--scsi

 

[Maximin]

OhMan: You might wanna look at the Good Faith Estimate for the transaction details and compare to other brokers' offers. G'Luck!

 

[Humphh]

In Northern California if you can find a decent house that isn't a jumbo loan, you got a great deal!

 

[daddio1949]

Hi,

I think there is a lot misinformation in mortgage loans; in general they are as trustworthy as a used-car salesman. There is no-free lunch with regards to mortgages. Kwad Guy says "I could have gotten 5.5 (for my purposes, I wanted a total no cost loan". His closing costs are imbedded in the extra 0.375 percent over the life of the loan. I recently refinanced in April at 5.375% (convertional) and a 0.25% meant roughly $40/month for 360 months.

My comment when somebody claims a low interest rate you need to check the terms closely: fixed vs variable loan; the loan amount (fees are added in); & closing cost. I found much to be desired among the mortgage brokers.

 

[icecube]

So basically there's no difference between low interest rate+closing costs and slightly higher interest rate+no closing costs? You're either paying the closing costs now or over the course of the loan, right? Isn't the latter better from a present value standpoint?

Originally posted by: daddio1949
Hi,

I think there is a lot misinformation in mortgage loans; in general they are as trustworthy as a used-car salesman. There is no-free lunch with regards to mortgages. Kwad Guy says "I could have gotten 5.5 (for my purposes, I wanted a total no cost loan". His closing costs are imbedded in the extra 0.375 percent over the life of the loan. I recently refinanced in April at 5.375% (convertional) and a 0.25% meant roughly $40/month for 360 months.

My comment when somebody claims a low interest rate you need to check the terms closely: fixed vs variable loan; the loan amount (fees are added in); & closing cost. I found much to be desired among the mortgage brokers.

 

[c627627]

If anyone who has done research on buying a house could please post links to sites they found most useful,
it would be much appreciated.

 

[disgruntledlurker]

monstermoving.com has a huge collection of banks/brokers posting rates on any given day (at least for VA)

Used them to find the best rate for my last refinance.

 

[ETan]

just a piece of advice since I'm in the mortgage industry...

be careful who you deal with. None of the preliminary application, disclosures documents are binding. many people tack on a fee at the very end.

When shopping for something as important as mortgage, you need to be able to trust that person you're dealing with first. Then you figure out the deal that you're getting, which is a combination of the closing costs going to the brokerage firm AND the rate itself.

And, 0 points does not mean 0 closing cost. Paying points more often than not is actually a good idea for various reasons (tax, overall cost, etc).

Lastly - find a broker that is willing to work with you, but don't ABUSE them... don't call up asking for a lower rate everyday... There are many ways to get a great deal, but being a tire kicker and jumping ship all the time will only hurt yourself in the long run.

Good luck folks. Get them while they're hot.

Email me if you need help.

 

[sworshs]

Don't jump into a mortage according to the rate you see today, cuz by the time you get all the documents in, the rate may change already. The agent can quote you a very good rate today, but after all the paper work and everything, when it's ready to lock in the rate, that's the time you will know what kind of rate you are getting!

 

[Afterhourz]

Bank One currently has a promotion going on. They're application takes 5 min over the phone and their deal is sound and reads very nicely. I'm going to get a final approval Monday but here's the deal as it stands.

For a 30 year fixed rate, it is 6.5%. This may seem high compared to the others in this post, but I didn't see others that stated a fixed rate.

Closing costs. $98 - There are no more charges ( this is 0 points, no loan origination fee which I think is BS btw because you may get a lower int. rate but the loan amount goes up and eats into your equity. )

Interest reduction of -.35% if you have a bank one account and opt for automatic withdrawal, which I dont see a problem with.

So it's 0 down, 0 points, 6.15% Fixed with $ 98 closing for Tier 1 credit, I think it's 7.5% for Tier 2.
If someone here has something better, let me know.

 

[Kwad Guy]

Yes, there is no free lunch. The more of your money you are willing to put up at the time of closing, the lower the rate you can get. If you don't expect to be in the same house for that long, then it makes sense to roll as many of the closing costs into the rate. If you plan on staying put for a long time, you are better off taking the lower loan rate and pay the up front costs.

There are other intangibles, such as future interest rates. For example, if you expect rates to continue to drop (and hence you'll be refinancing again soon), then you don't want to pay anything when closing the loan (i.e. take the higher rate).

Kwad

 

[ynot167]

I think Ill stick with my 5.1% fixed for 15 years with Washington Mutual. Just refinanced last month. Thanks anyways

 

[daddio1949]

Hi,

I agree with the prior posting, you have to be careful out there. Just remember the mortgage broker is not looking out for your interests. I refinanced on April 1 & obtained a 30 year fixed rate for 5.375% (5. 3/8%). My prior mortgage was 6 5/8%. Your mortgage rate also depends on your credit history. Bad credit will cost you. Afterhourz claims to have paid 6.5% that seems high, rates have been below 6% since last Fall. (I don't know her credit history.) PMI (private mortgage insurance) may also be involved.

Kwad Guy is correct about points & closing cost. I opted for the lowest rate possible because my wife & I will be in the house for a while. For a 30-year loan refinancing makes sense with 1% differential. Conservatively I am able to recoup the closing costs in less than 2 years.

My closing cost consisted of fees, title insurance, and escrow. My fees & title insurance were under 1% of the loan amount. Your escrow amount depends on your property taxes and insurance premium. If you are refinancing then you will receive a refund for escrow from your prior lender.

BE CAREFUL of any lender that only quotes you the monthly payments and claima its a better deal than your current mortgage - there hiding something. I had one claim he had the best rate, but he was talking variable rate & I was talking fixed. I get many cold calls offering great deals, but under the closer examination the deals suck.