a quick mortgage question

James282 · #1 06-12-2007, 10:46 AM

So I was talking to a mortgage guy yesterday who said he could offer me 6.625% on a 30 year fixed with no fees at all. He advised me to not lock in the rate, as he believes the rates will fall in the next month or so(before i need my mortgage committment). Is he just like all other market speculators just using guesswork, or is there real reason to think that rates will go back down after this recent spike?

James

Fishhead24 · #2 06-12-2007, 11:29 AM

6.625 with no fees or points at this time is not an overly bad deal if your credit is average.

If you have excellent credit, you could do better.

All in all, not a bad deal at this time in my opinion.

mindflayer · #3 06-12-2007, 12:24 PM

Watch out for the penalties if you want to make EARLY payments, or close the loan/sell the house/upgrade/move to other city etc.

James282 · #4 06-12-2007, 12:28 PM

[ QUOTE ]
6.625 with no fees or points at this time is not an overly bad deal if your credit is average.

If you have excellent credit, you could do better.

All in all, not a bad deal at this time in my opinion.

[/ QUOTE ]

Sounds like you are really up on things. What would you consider a good deal at this time?

James

AggroFish · #5 06-12-2007, 12:32 PM

The guy you talked to was a gambler, rates are all over the place. 6.625 is about <.500> 1/2 pt/50 basis pts on a 30 day lock. If you're more than 45 days out there's not much you can do.

rapidacid · #6 06-12-2007, 12:58 PM

I'm sure he would've advertised this if it was available since it makes money for the bank, but my lender allowed me to lock in and then pay a "downdraft" fee ( I believe that's the name ) if the rates went down ... I think the fee was $180 each time I opted for the downdraft, but in the end I got 3/8th of a percent off the original lock in ...

You may also want to inquire about bi-weekly payment options as that's about 1/8th of a percentage less than normal monthly plan ... ends up being like a 24 year mortgage as well ( assuming no extra payments ) so you do save quite a bit in interest

john voight · #7 06-13-2007, 06:08 AM

I would not trust a man who claims he can predict interest rates.

#8 06-13-2007, 06:26 AM

RUFFNECK · #9 06-13-2007, 11:15 PM

I just pulled out of a deal because I failed to lock in the orig. quote. If you can live with what he is offering I would suggest locking it down.

AggroFish · #10 06-14-2007, 12:07 AM

One more thing: rates change daily so make sure whoever is quoting you the rate has enough information from you, i.e 1003, so hit can lock it through underwriting and it's not just a rate quote.