Forum
« Rental Comps for a 203k? Confusing Lease Notice »
September 9, 2009
Advice on Mortgage Rate
We have signed the contract to buy a $595,000 2BR brownstone apt w/ 20% down. The mortgage broker initially said (a few weeks ago) that we would be able to get a 5.65% loan with no points. He called me today and said b/c it is a jumbo loan ($472,000) in a 3 unit condo that it is most likely going to be a 5.75% loan w/ half a point. He said that he came to this conclusion after checking with various lenders.
We are first time buyers and I am happy to listen to this guy b/c I know going through a single bank could be problematic.
Also, I know that it is difficult to get loans at the moment and maybe this is typical, but I just wondered if his numbers sounded about right for this sort of purchase.
We have excellent credit (755) and decent income (150k) & hope to close by the end of the month.
Any advice much appreciated.
Thanks :)
Comments
why not get a few other quotes? I did when my mortgage broker threw me a curve ball right before I was supposed to lock and I ended up going through a different lender. I'd already paid something in fees but the savings with the other loan far outweighed the loss.
Posted by: herkimermaid at September 9, 2009 12:11 PM
Do not make the mistake of listening to a mortgage broker - 99.9% of these guys have no idea what they are doing.
Call your bank directly and then call another bank. Call JPMorgan in particular - they are a pain to deal with, but are much more likely to get the deal done than other banks.
I would apply with two banks simultaneously (don't tell them you are doing this, as they will not like it), then decide which bank you like better.
If you are buying in Manhattan or Brooklyn the conforming limit is $729,500 not the old $417,000 so any broker telling you that $475 is jumbo is out to lunch.
Posted by: superlawyer at September 9, 2009 12:13 PM
I believe I read somewhere that the conforming loan limit of $729,500 does not apply to condos.
Posted by: rjm at September 9, 2009 12:20 PM
417k is the conforming limit
729k is the conforming jumbo limit
conforming jumbos are slightly higher rates.
Posted by: Adam Dahill at September 9, 2009 12:26 PM
I got a much better rate calling Wells Fargo directly than I did working with a mortgage broker. I think many banks are not working with brokers anymore.
Also, we had to get below 417k to get the best rate.
Posted by: jefrey at September 9, 2009 1:54 PM
You may have trouble dealing directly with the bank because the condo being only 3 total units. They generally prefer to deal with 4+ unit condo buildings (I believe because of Freddie/Fannie risk parameters). Still, calling around a little bit will not hurt.
Posted by: setancre at September 9, 2009 1:58 PM
I agree with the other posters..definitely call a couple of other banks. There is no need for a mortgage broker. Try giving Wells Fargo a call, they are very competitive with their rates and would pretty much match and beat any bank mortgage rates.
Before you commit to a bank, make sure the mortgage specialist knows exactly what type of property you are buying. Wells Fargo is very strict as far as the guidelines and commitments compared to any other banks. e.g. They made us remove our window security guards or we could not get the mortgage while other bank (HSBC) would probably care less.
Posted by: namahs at September 9, 2009 2:05 PM
Thanks so much for the advice! It certainly looks like going to the bank directly could be problematic. They don't seem to want to touch 3 unit buildings.
Calling around to other brokers though to see if they can better the rate & terms.
Thanks!
Posted by: kissiffer4 at September 9, 2009 2:30 PM
agree with other posters on the fact that you can often do better dealing with the banks directly. don't forget to try the regional banks, such as astoria..
Posted by: raphael9 at September 9, 2009 2:32 PM
Naive question, but why would you ever have to *remove* window security guards to qualify for a mortgage?
Posted by: slopette at September 9, 2009 2:45 PM
The window security guards do not have a safety latch so under their guidelines its against the fire code even though there are 2 exits on the floor (front and rear door).
Posted by: namahs at September 9, 2009 3:22 PM
Blimey. Not sure I stand a chance at the banks if removing a window security guard puts a spanner in the works lol. Maybe I'll just have to take the 5.75 & 1/2 point :) Esp. if they are funding in house.
Posted by: kissiffer4 at September 9, 2009 3:31 PM
Funding in house? What does that mean?
Honestly, you've gotten far enough that you ought to just call a few banks. It is a ten minute conversation at this point: "My income is a, I have credit score of b and cash reserves of c. I'm in contract to pay $x for a condo in a three unit building in Brooklyn. I'm wondering if you can do better than 5.75% with a half a point down?"
The answer ought to be "yes" or "no."
Posted by: serpentor at September 10, 2009 12:13 PM
We used HSBC direct, they were pretty good. Definitely check with whoever you bank with, often they'll give you a discounted rate if you also have your checking/savings accounts with them.
Posted by: woodys at September 10, 2009 12:59 PM
check out mortgageefit.com or http://www.bankapedia.com/forum/
you can connect with lenders on the site and in a lot of cases not have to be bombarded with calls you can usually just ask a question and get an answer.
My guess is this is where mortgage sites are heading. The LendingTree model is dying.
Just my $.02
Posted by: dcdubbs at October 7, 2009 8:40 PM
Post a comment
Please be patient while your comment is published. It may take a moment.