Mortgage Rates

[Anti_Rice_Guy]

Now that the house search is more serious, where have those of you who recently bought homes found the best rates?

I was quoted 4.125 (30 year fixed) for generic preapproval just to get the house shopping going a few months back - was only going to shop around once I find something I want.

[Jersey Mike]

I'll text you the v-card of the person I used. Nothing but good things to say on my end.

[Anti_Rice_Guy]

[qwikz28]

I'll call you later, Nick. I started working with a credit union that has a fantastic program.

[LTb1ow]

4.5 here, prob could get a tad lower if I refi

[MDSheds_SS]

4.25 30 year fixed... with only 3% down non FHA loan. The program I used is called Home Ready. Allows you to put down whatever you want down to 3%
Used this so I could keep my cash for renovations without running up CC bills. You have to qualify for it. Credit, 1st time home buyer, and a few other things play a factor. . Best part is no early payment penalties. So you can actually use it to flip a house if you wanted without paying the penalties like you would for a FHA loan or you can pay more to the principal of the loan without penalties.

[//<86TA>\\]

3.75 with quicken, but that was a few years back.

[ThoR294]

Wells Fargo and Navy Federal Credit Union. We got good rates for them but house fell through (septic tank failed, oil tank in ground leaking... Zzzz)

[KevinW]

I 3rd the recommendation on using a Credit Union, better rates than big banks and a more personal touch!

[Featherburner]

A friend of mine went through this company last September or October and got 3.5%. https://montmtg.com/

[JL8Jeff]

Do you plan on putting down 20% so you don't have to pay PMI?

[Anti_Rice_Guy]

Originally Posted by JL8Jeff

Do you plan on putting down 20% so you don't have to pay PMI?

That is my plan, yes.

I would run a comparison with what Sheds said as far as total cost though now that I know about it.

[Paul Huryk]

My wife and I have a 4.0% 30 year from Wells Fargo that was put in place in September 2015 - I'm sure we could get 3.75% now. We did put down over 25%, which of course fixes the PMI problem. Wells turned around 3 months later and sold our mortgage to some other company, typical for solid loans.

[Featherburner]

Keep in mind all the additional costs of purchasing a home. Probably $10,000-12,000 on top of your down payment.

[JL8Jeff]

Originally Posted by Paul Huryk

My wife and I have a 4.0% 30 year from Wells Fargo that was put in place in September 2015 - I'm sure we could get 3.75% now. We did put down over 25%, which of course fixes the PMI problem. Wells turned around 3 months later and sold our mortgage to some other company, typical for solid loans.

I worked for a bank/mortgage company and they sold my mortgage to someone else within 3 months. They now do subservicing which is a large market so no matter where you get your mortgage, expect it to be sold to someone else within the first year. It really comes down to the rate, points discount and if you have to pay pmi to figure out what the real cost is. We paid extra every month to pay down the loan faster and then refi'd after about 8 or 9 years and paid off the mortgage in 19 years. If you can afford it, pay an extra $100 to $200 a month that goes straight to the loan and not any fees, interest or taxes and you can really accelerate your payoff. The actual rate isn't as important as everything else combined.

[qwikz28]

Originally Posted by Featherburner

Keep in mind all the additional costs of purchasing a home. Probably $10,000-12,000 on top of your down payment.

Closing costs are generally proportionate to the purchase price, although FHA loans and condominiums have extra closing fees involved. Title charges is the big one.

[madness410]

i got mine through homes for heroes...4.0% 30 year fixed about 2 years ago. honestly i wouldn't use them again or at least the lady i used. she put all the info in as a townhouse for me but 3/4 of the way through the process she found out it's a condo so it messed everything up...even the interest rate. her company bought the rate down for me thankfully.

out of curiousity where are you looking to get a house at?

[Featherburner]

Originally Posted by qwikz28

Closing costs are generally proportionate to the purchase price, although FHA loans and condominiums have extra closing fees involved. Title charges is the big one.

Laywer, survey, underground tank sweep, home inspection...it adds up fast.

[WSex]

4.125 30 year. Mind you if you do fha 3.5 percent down you pay around 250 per month in mortgage insurance.

[MDSheds_SS]

Don't forget, Every house needs a Shed too... I gotta guy lol.
I'm sure you have done your homework but I'll just say don't cheap out on the inspections. They will pay for themselves in the long run. The more they find the bigger bargaining chips you have to play with, unless it's an as is sale. Tank sweep are a 100% must (as is sale or not). I can't stress that enough. Cover your ass. Also ask questions. If your a 1st time home buyer theres no such things as a stupid question.

[Anti_Rice_Guy]

Originally Posted by WSex

4.125 30 year. Mind you if you do fha 3.5 percent down you pay around 250 per month in mortgage insurance.

Yeah, that's not worth it. Not going FHA, not sure if I even qualify.

Originally Posted by MDSheds_SS

Don't forget, Every house needs a Shed too... I gotta guy lol.
I'm sure you have done your homework but I'll just say don't cheap out on the inspections. They will pay for themselves in the long run. The more they find the bigger bargaining chips you have to play with, unless it's an as is sale. Tank sweep are a 100% must (as is sale or not). I can't stress that enough. Cover your ass. Also ask questions. If your a 1st time home buyer theres no such things as a stupid question.

My uncle/father have investment properties and sometimes flip houses so while I personally haven't done it, I know some things from experience and have them riding shotgun as "consultants". I also work in the contracting world so I know about swales to quell drainage problems on hills (applicable in this case), etc.

Originally Posted by madness410

out of curiousity where are you looking to get a house at?

Somewhere in the Lebanon Twp to Blairstown corridor. This particular one is in Liberty Twp.

[IROCZman15]

was fortunate to get a 2.54% 30 year fixed rate loan (with zero points and a one time only $500 loan fee) through wells fargo's police/firefighter package. they said it was the lowest that their rate has ever been so we jumped on it immediately (fall 2012). a little while later they sold our loan to CENLAR but the rates did not change so I got lucky. I know the loan market has changed but if you an get something in the high 3's low 4's that would be great (depending on your personal financial past/present situation). as jeff mentioned, throw a bit extra at the loan monthly if you can afford it. we put in $130 extra per month just to help knock principal down quicker. You do luck out coming from the contracting realm of stuff for things to look for when house shopping so that is good.

[BonzoHansen]

rate should not change if the loan is sold. many loans are. any potential change in rate would be spelled out in the mortgage contract.

[JL8Jeff]

The rate won't change when the mortgage is sold, you just end up sending your check to someone else to process your payment. You just need to make sure the new servicer keeps up with paying your taxes and homeowner's insurance if you do all that through the mortgage. That's where most of the problems pop up, that and the amount in escrow.

[Anti_Rice_Guy]

Originally Posted by JL8Jeff

The rate won't change when the mortgage is sold, you just end up sending your check to someone else to process your payment. You just need to make sure the new servicer keeps up with paying your taxes and homeowner's insurance if you do all that through the mortgage. That's where most of the problems pop up, that and the amount in escrow.

This was one of my questions - what are your thoughts on wrapping taxes and insurance together with that? I never thought to do that but have been reading about doing so.

I was planning on not, to limit the interest paid. I had/have budgeted for separate line items in my income for those two areas.