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November 25, 2008
where to get the best mortgage rate?
Does anyone have any suggestions for a mortgage of $700k on a 2 family for $1.1 million? Does this have to be a jumbo mortgage with a higher rate? I saw on bankrate that garden city mortgage has the lowest rates, has anyone ever worked with them? I got a breakdown from victor angel at manhattan mortgage sometime ago and the rate was 6.75 and closing costs 29K. Finally, does anyone have experience with trachtman and bach or commerce bank?
Comments
On World News Tonight with Charlie Gibson, he said that the 30 yr fixed mortgage rate dropped to 5.37% today after the feds announcement of its new 800 Billion dollar plan to make mortgages and other types of credit cheaper and available. Sounds like a good rate to me. Hopefully, a lot of people on the sideline waiting to buy a home will buy now.
Posted by: Bklyn born at November 25, 2008 7:14 PM
Please give me a call to discuss you situation. You can do much better than 6.75%
rates opened up extremely good this morning but got worse 3 times today. Make sure that you you double check any quotes that you were given as they are most likely different if you didn't lock.
Adam M. Dahill
Branch Manager
Approved Funding Corp.
41 Grand Avenue
River Edge, NJ 07661
(201) 833-0123 x242 office
(917) 696-6010 mobile
(201) 298-6599 fax
adahill@approvedfunding.com
www.approvedfunding.com
Posted by: Adam Dahill at November 25, 2008 7:18 PM
be very wary of bankrate.com as those rates are subject to change and the lenders/brokers that post those rates pay to do so and have no obligation to deliver. It's a "pay to play" website. Multiple lawsuits against bankrate.com just google it and you will see what I'm talking about.
Posted by: Adam Dahill at November 25, 2008 7:20 PM
6.75 sounds low for a jumbo mortgage. See the Brownstoner post about the Carroll Gardens four family house of the day comments -- someone on there has credible sounding details about mortgage rates for these kinds of buildings.
I would be wary of random mortgage brokers, stick with the tried and true who have a good reputation and do a lot of business with the type of building you're buying.
Posted by: mopar at November 25, 2008 8:00 PM
My broker called me this morning to see if I wanted to refinance at 5.37. By the time I had called him back it was up to 5.6 or something, but still very very good rates right now.
When we were in a similar economic predicament in the 80's interest rates were 13%.
Keep that in mind.
Posted by: 11217 at November 25, 2008 8:21 PM
Must be fun to have $400,000 just lying around...
Posted by: tybur6 at November 25, 2008 8:56 PM
700k for 2 fam you should get good rates. you are within the conforming jumbo limits. once you go over 1 million and outside fannie/freddie limits rates vary drastically.
Call me
Posted by: Adam Dahill at November 25, 2008 9:04 PM
This is going to kill my chances at getting that 800 k brooklyn Heights townhouse... But I am not surprised as I have written in the past I believed the Fed would start gobbling up all types of worthless securities and also buy the 10 yr treasury. Well this should help the housing market but it will probably not show up for a while. Especially if we can get those rates down close to 5 flat.
Posted by: HOBOKENROCKS at November 25, 2008 9:50 PM
Leela,
I have seen those rates at bankrate.com as well and been intrigued. However, when I actually did get a mortgage, I used Trachtman and Bach. I thought they were very professional and helpful. Once we got the paperwork straight, you call in everyday after 1:00 p.m. to check their best rate before you lock. Good luck!
Posted by: slopenick at November 25, 2008 11:22 PM
How does mortgage rates vary thoughout the day? I didn't realize this happened. How does one "chase" the low of the day? Is this like when an application is locked in the morning versus late afternoon? How does one "chase" the low of a 30-day range to closing? Am I correct in thinking securing a rate is a bit like gambling?
Posted by: helppls at November 26, 2008 4:09 AM
Slopenick, may I ask what rate you got with T & B? Thanks.
Posted by: Leela at November 26, 2008 10:28 AM
Tractman and Bach are really good. I would recommend them. That being said, they'll probably use Astoria Federal Savings, which posts its rates here:
http://www.astoriafederal.com/cgi-bin/nymort.pl
Posted by: justinm at November 26, 2008 1:46 PM
Astoria Federal is good but once you go into Jumbo loan sizes they only offer ARMS and a 15yr fixed. No 30yr fixed over 417k.
Their jumbo rates are great but when you go over 750k you need 25% of the loan amount in reserves. It's a tough program to qualify for. So if you want a 1 million dollar loan you need 250k in reserves outside of the loan.
Posted by: Adam Dahill at November 26, 2008 2:41 PM
leela, for your scenario you can easily get a rate in the low 6% range with 0 points assuming your finances are sound and you have good credit. sunny_hong@countrywide.com
Posted by: shong1 at November 26, 2008 9:44 PM
To answer your question, yes it is considered a Jumbo Loan. Here is the good news, there is a good amount of equity (or a large downpayment if this is a purchase). This is a catch 22, the rates on a 30 year fixed are generally not that great, however the rates on say a 7/1 Arm which is fixed for 7 years then can adjust after (you re-fi out by then) are very good with select lenders. I'm a direct lender in NJ, and I punched up your scenario and came up with a 5.75% with a 700 or higher credit score. You can still get a very good deal. 29k in closing costs is excessive, I don't want to knock your broker but that is quite a bit, you will have mortgage tax which is probably around 13k on that size loan, however anything over 1% origination/discount/broker fee's are excessive at that rate. Feel free to email me with any questions.
Larry Blusewicz
Worldwide Financial Resources
1-800-320-3765 ext 226
lblusewicz@e-mailfr.com
Posted by: WFRLarry at December 9, 2008 8:17 PM
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