FHA Mortgage Rate Question

BLUE, The Good Faith Estimate reflects a rate and the interest rate on that day and how long that pricing is good for. On floating loans the date on line 1 of the GFE is the same as the GFE date. You will see on lines 2,3, and 4 other factors concerning the fees reflected on the GFE as well as other details in respect to rate lock periods. If your loan is floating your broker should update you with current pricing that is associated with each rate. Keep in mind that all rates are available every day, and what changes daily with markets is the price of the specific Note Rate. You should be able to see a stack of rates, with the principal & interest payment for that rate, along with the associated price, which can range from a cost to a lender credit towards closing costs. This way you can compare and see what works best for you. (You may find that there are sizable lender credits associated with a rate where, depending on the scenario, the lowest rate may not always be the best rate for a particular scenario.) You will have the option to lock your loan at any time up to a week prior to closing and a 30 day rate lock will provide slightly better pricing than a 45 or 60 day rate lock (but all are available). Feel free to contact me if you would like for me to review anything for you. -Adam Adam Roberts

mortgagepro

in About Brooklyn 11 years and 4 months ago

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blue1892 | 11 years and 4 months ago

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Hi All, Hoping someone may be able to help me out. We are in contract on a house, past appraisal and just received our commitment from the Mortgage Company we are working with on an FHA 30 Year Fixed Rate Mortgage. The rate they gave us is 4.5% and when I look at the current rates for today online, the best are lower and all along I have been thinking ours would be lower – is there anything I can do at this stage to try and negotiate it down? I know lots of factors go into Mortgage rates but if I am able to get it down at all – I would like to try. Anyone have advice on this? Many Thanks, Blue

resident2 | 11 years and 4 months ago

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FHA rates are always higher than advertised. A 30 year fixed rate is going to be the highest, an adjustable will be lower and frankly if you are paying PMI as well, you will be refinancing to get rid of the PMI within a few years. So ask about the rates for a 5-7 or even a 10 year adjustable. Make sure there are caps on your adjustments. Do you really think you will be there paying off your same mortgage 20 + years from now? No, you will refinance to get rid of PMI, you will refinance to pay for your kids college, you will refinance to pull out your construction renovation costs as your tenants rent goes up etc. etc. etc.

adam_dahill | 11 years and 4 months ago

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FHA rates should actually be lower than conforming rates at times. They require mortgage insurance so the effective rate will tend to be higher. It’s impossible to quote a rate without having the full details but a low credit score could be a factor affecting your rate. FHA loans typically don’t penalize you for spotty credit unless your Fico score is in the low 600’s. Feel free to send me your scenario for another look at it. http://brownstoner.staging.wpengine.com/adamdahill

xchx | 11 years and 4 months ago

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You are a little late to shop around – the other mortgage company won’t be able to use this appraisal. so you’re sort of locked in with this mortgage company and he knows it. do you have time to get another appraisal? If I were you I would quickly get like 3 rate quotes from other mortgage companies, tell your current broker you realized he’s not giving you a good deal, and tell him unless he matches the best offer you are going to get a new appraisal and a different mortgage. He will probably complain but hopefully this will work.

xchx | 11 years and 4 months ago

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On the person who says you’ll be refinancing – for decades rates have been going down, but if this changes, refinancing won’t be the norm. So make sure you get a good rate now. Wells Fargo’s website is quoting 4.125% for 30-year fixed FHA. in my experience, some people were able to beat Wells’ published rate by .25%.

xchx | 11 years and 4 months ago

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Also – you should know that all the charges and fees are totally negotiable. Don’t think he’s giving you a special deal if he just waives the origination fees.

adam_dahill | 11 years and 4 months ago

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If the FHA appraisal has been uploaded to FHA connection the new lender has to use the original appraisal. A new bank would have to ask the current lender to release the FHA casefile number to them. What kind of property and loan amount are you working with? We should be able to beat that rate and then some. -Adam Dahill nmls 66099

mortgagepro | 11 years and 4 months ago

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As mentioned, a FHA appraisal is absolutely transferable to another lender. Current par pricing is significantly lower than what you mentioned and very generous lender credits are available at lower rates than you mentioned as well. Each scenario is unique, but I do suggest you consider you speaking with an alternative broker. Adam Roberts

blue1892 | 11 years and 4 months ago

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Thank you everyone for taking the time to respond. I am a daily reader of this blog and hope that through my own experience I am able to advise or assist the community moving forward as you all have been a help to me. I should have mentioned previously that between the two of us buyers, our credit scores are 780 and 805 so that is certainly not the problem. In regards to the refi consideration – of course we will want to refinance should it benefit us, losing the PMI – hopefully rates stay favorable long enough for us to do so – hopefully quickly. I spoke to our lender today and he still insists our interest rate will be lower than 4.5% – I guess my real question is how or where do I find information when it comes down to the moment to lock in the rate that I can say – I did my research, I checked the rates and we should be getting X Rate. Is there something that I can prepare myself with to do something like this? Again thank you all for chiming in and sharing your knowledge. BLUE