Post # 1
im closing in on a condo on Jan. 12th and its my very first time so I’m clueless. Although I thought I had ducks in a row, I was advised to shop around for cheaper rates.
I was working with a mortgage broker that is able to give me 4.75%. My bank originally told me 4.25 plus $75 mortgage insurance fee….I told them not interested but then I missed an email that told me they can get it down to 4%.
If I type in a mortgage calculator, it still is a bit more… Or am I overseeing the benefit of going with a bank? I would ask for advice from my brother in law who use to be a loan officer but it’s midnight and I’m mad at myself I emailed the bank I’m not interested before seeing that 4% thinking I missed my chance. I’m now stressed if I do go with the bank if we can close on time. He said we would have to request a two week extension due to all the holidays but I’m afraid the sellers will say no.
Post # 2
I don’t have much experience with this at all, so I’m not much value here. DH and I just bought our first house. I can say that Darling Husband and I bank with a major bank and ultimately went w/ a mortgage broker. There’s probably pros and cons of each depending on your specific situation.
Post # 3
soontobemrs1011 : which offered the lowest rate?
Post # 4
- Wedding: December 1969 - City, State
Mlim : I don’t get why you would go with the broker when your bank offered you a lower rate? Where are you located – US?
We have a mortgage in the US with our bank and interest is 3.5% (recently signed) and our CAD mortgage is at 2% for two years (just renewed), also with a bank. Rates don’t lock in for the life of the mortgage in Canada, whereas our US mortgage is locked for 30yrs.
Post # 5
When I got my condo, I got a better mortgage rate with the bank that I currently banked at.
Post # 6
Mlim : it depends on your situation. I found brokers are good if the financial situation is complex/ not straightforward (e.g. Two people on the mortgage where one is on a 0 hour contract or one is self employed with not long enough proof of income etc). My situation was straightforward and I found the rate was better if I worked directly with the bank. The bank I went for didnt work with brokers. Skipping the broker saved me around £5k.
Post # 7
I’ve gotten 3 home loans over the years. I had the easiest and best experience with my bank. (3rd home/loan.) The brokers I used for the first two loans sucked for different reasons, and made the buying process highly stressful.
Post # 8
Mlim : that interest rate is WAY too high. Going interest rates are around if not below 3% unless your credit is messed up or you are doing FHA (if you are doing either you shouldn’t be buying a house IMO). So either your bank/broker is ripping you off or there is more to this then you are including.
Post # 9
You can always get a cheaper rate with the bank.
However, if there is an issue with credit, down payment amount and debt to credit ratios then the broker would be best for you.
I’ve been in the banking industry for 4 years.
Post # 10
You can check with a bank it should be a little cheaper. Don’t forget the Fed just raised the prime rate to 3.75% so interest rates are going to start to go up
Post # 11
Brokers can shop multiple rates/backers. Banks represent only the bank. If it’s $75 a month for the life of the loan, no. That’s not good. Normally you can drop PMI once your balance is less than 80% of the value of the property… so signing up to pay out forever, like with an FHA, is not ideal.
Post # 12
Mlim : Make sure to ask the places with the lower rates about origination fees that come with those rates. Sometimes they’ll offer you a lower rate than everyone else, but you have to bring more money to closing due to fees. Rates have recently risen a bit so I don’t know about finding rates at 3% or lower but this is not my industry so I could be wrong. All I know is with a VA loan which typically on a 30 year fixed has a lower rate than a conventional loan, the lowest we could get (with excellent credit) without having to pay fees and bring extra money to closing as of yesterday was 4%.
Post # 13
Mlim : it also depends on how long you stay in the house. We chose to go with the lowest rate possible and pay closing fees since we are staying here forever. My girlfriend bought a starter home and since she plans to stay 5 years decided to go with a slightly higher rate and zero fees because she wouldn’t be in the property long enough to break even on the fees to benefit from the lower rate.
Post # 14
happy2bee : maybe 18 months ago but 4 is not a bad rate now, the Fed just raised rates
Post # 15