Comments on: Interest Rate Frustration http://theweightofmoney.com/2007/05/interest-rate-frustration.html understanding the weight of money Mon, 25 Jan 2010 03:09:53 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Josh http://theweightofmoney.com/2007/05/interest-rate-frustration.html/comment-page-1#comment-5335 Josh Wed, 16 May 2007 02:28:22 +0000 http://theweightofmoney.com/2007/05/interest-rate-frustration.html#comment-5335 7% sounds high, but if you're financing 100% then that'll make a differece. Also, if you're using a mortgage broker (as opposed to dealing directly with a mortgage company) you are paying approximately 1% of the loan value toward the broker's fee, usually hidden in some way such as a higher % rate. We had to close on a house very quickly last summer. One mortgage company got me a reasonable rate, etc, etc, and then I didn't hear from my agent for a while. A week passed. I emailed, I called. Another week passed. Turns out she was in a car accident and didn't lock in my rate and the person who took over her accounts couldn't get me my rate, etc, etc, etc. Long story short, I called around and was able to get another mortgage in time for our closing LESS THAN TWO WEEKS from when I called them. You've already gotten all the documentation together that another mortgage company would need, you know exactly what to do, and you have a 7.15% to fall back on. So go shop around! Go to bankrate.com and look up mortgage companies by rate. call numbers 3-6 on the list (#1 and 2 are likely not to have the rates they advertise.) Don't leave your information if you don't reach a person, but tell them exactly what you're doing and see if they can do what you need. 7% sounds high, but if you’re financing 100% then that’ll make a differece. Also, if you’re using a mortgage broker (as opposed to dealing directly with a mortgage company) you are paying approximately 1% of the loan value toward the broker’s fee, usually hidden in some way such as a higher % rate.

We had to close on a house very quickly last summer. One mortgage company got me a reasonable rate, etc, etc, and then I didn’t hear from my agent for a while. A week passed. I emailed, I called. Another week passed. Turns out she was in a car accident and didn’t lock in my rate and the person who took over her accounts couldn’t get me my rate, etc, etc, etc. Long story short, I called around and was able to get another mortgage in time for our closing LESS THAN TWO WEEKS from when I called them.

You’ve already gotten all the documentation together that another mortgage company would need, you know exactly what to do, and you have a 7.15% to fall back on. So go shop around!

Go to bankrate.com and look up mortgage companies by rate. call numbers 3-6 on the list (#1 and 2 are likely not to have the rates they advertise.) Don’t leave your information if you don’t reach a person, but tell them exactly what you’re doing and see if they can do what you need.

]]> By: mapgirl http://theweightofmoney.com/2007/05/interest-rate-frustration.html/comment-page-1#comment-5321 mapgirl Tue, 15 May 2007 18:38:53 +0000 http://theweightofmoney.com/2007/05/interest-rate-frustration.html#comment-5321 Don't feel guilty about switching brokers. If the first one isn't giving you the service you need, why should you be stuck paying an extra $50K in interest over the life of the mortgage. Do you want to fork over $50K to the guy? Because that's what you're doing if he can't find you a better deal. Don’t feel guilty about switching brokers. If the first one isn’t giving you the service you need, why should you be stuck paying an extra $50K in interest over the life of the mortgage.

Do you want to fork over $50K to the guy? Because that’s what you’re doing if he can’t find you a better deal.

]]> By: Donna Jean http://theweightofmoney.com/2007/05/interest-rate-frustration.html/comment-page-1#comment-5319 Donna Jean Tue, 15 May 2007 18:01:05 +0000 http://theweightofmoney.com/2007/05/interest-rate-frustration.html#comment-5319 Another follow-up -- feeling unsure about the current product, I followed another broker recommendation, explained the situation to her, and she's going a basically give us a "second opinion". She'll look at the paperwork we've submitted and received (credit reports, good faith estimates, loan product) and let us know if we're getting what we should or not. If she knows of a better product that we can get, she'll also let us know. I'm feeling a little guilty about this, especially after talking with our current broker for a while this afternoon. It feels a bit swarmy to consider jumping ship, but then again, this is a 30-year commitment and there are serious financial implications for making a poor choice. Of course, the 100% loan (no ARM, thanks for the feed back mapgirl), not perfect credit, and one loan product (versus an 80/20 split) is having an impact on the interest rate. Another follow-up — feeling unsure about the current product, I followed another broker recommendation, explained the situation to her, and she’s going a basically give us a “second opinion”. She’ll look at the paperwork we’ve submitted and received (credit reports, good faith estimates, loan product) and let us know if we’re getting what we should or not. If she knows of a better product that we can get, she’ll also let us know.

I’m feeling a little guilty about this, especially after talking with our current broker for a while this afternoon. It feels a bit swarmy to consider jumping ship, but then again, this is a 30-year commitment and there are serious financial implications for making a poor choice.

Of course, the 100% loan (no ARM, thanks for the feed back mapgirl), not perfect credit, and one loan product (versus an 80/20 split) is having an impact on the interest rate.

]]> By: mapgirl http://theweightofmoney.com/2007/05/interest-rate-frustration.html/comment-page-1#comment-5314 mapgirl Tue, 15 May 2007 15:08:47 +0000 http://theweightofmoney.com/2007/05/interest-rate-frustration.html#comment-5314 I think it's b/c you are getting full financing that you are paying over 7%. Rates are still pretty decent, but which loan product are you getting? A fixed 30? A 10/1 ARM? You might think of getting a longer term ARM like I did. The long fixed period gives you some stability in payments, pays down the principal and maybe a lower rate than a standard fixed-30. Also, try asking a regular bank to give you a quote. I can recommend my banker since she was based in MD. I wish you a lot of luck! :-D I think it’s b/c you are getting full financing that you are paying over 7%. Rates are still pretty decent, but which loan product are you getting? A fixed 30? A 10/1 ARM? You might think of getting a longer term ARM like I did. The long fixed period gives you some stability in payments, pays down the principal and maybe a lower rate than a standard fixed-30.

Also, try asking a regular bank to give you a quote. I can recommend my banker since she was based in MD.

I wish you a lot of luck! :-D

]]> By: Donna Jean http://theweightofmoney.com/2007/05/interest-rate-frustration.html/comment-page-1#comment-5311 Donna Jean Tue, 15 May 2007 14:56:01 +0000 http://theweightofmoney.com/2007/05/interest-rate-frustration.html#comment-5311 Even for a 100% loan? Saving for another year didn't pull in much of a down payment and the current broker said the difference that the few thousand we have would be better kept on hand for emergencies. At this point, I would rather have some extra cash on hand for unexpected problems, but think a number in the sevens is crazy! Even for a 100% loan? Saving for another year didn’t pull in much of a down payment and the current broker said the difference that the few thousand we have would be better kept on hand for emergencies. At this point, I would rather have some extra cash on hand for unexpected problems, but think a number in the sevens is crazy!

]]> By: Rob Carlson http://theweightofmoney.com/2007/05/interest-rate-frustration.html/comment-page-1#comment-5310 Rob Carlson Tue, 15 May 2007 14:42:33 +0000 http://theweightofmoney.com/2007/05/interest-rate-frustration.html#comment-5310 7.15 is a bad rate for a mid-700 credit score. You should be able to get into the low to mid sixes, depending on how much you can put down. Go <a href="http://www.searchlightcrusade.net/posts/1122998480.shtml" rel="nofollow">get a back-up loan</a> if there's still time. 7.15 is a bad rate for a mid-700 credit score.

You should be able to get into the low to mid sixes, depending on how much you can put down.

Go get a back-up loan if there’s still time.

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