Home Loan: Bank offering 1 year / 9 months / 6 months / 3 months mortgage rate lock with 1 time optional float down
As of Aug 5 2013
I have purchased a home at Monroe Manor- NJ and have done quite a bit of research for getting one of the best deals on home mortgage.
I have found a bank that is providing the following rates as of Aug 5 2013. This is much better than the Wells Fargo deal that the builder has a tie up with (even considering the $1500 credit that Wells Fargo is giving)
For my house, I personally chose the 15 year fixed at 3.5% with 1 year rate lock + 1 time optional float down which is the best in the market.
5 Year ARM - 3.00%
10 year fixed - 3.375%
15 year fixed - 3.50%
20 year fixed - 4.375%
30 year fixed - 4.875%
The fees of the bank are also the best in the market:-
Total fees charged by the bank is (no other fees apply. The below is all the fees)
Application fees - $212
Appraisal fees - $325
Bank attorney fees - $275
Flood fee - $8
Credit report fee - $5
In addition the bank charges rate lock fees as follows:-
6 month rate lock - 0.5% of loan amount
9 month rate lock - 0.75%
1 year rate lock - 1%
Optional one time float down fees - $750
I compared this with several banks and found the above to be the best. If you compare this with wells fargo (who have jacked up the interest rates and have added a small $1500 initial credit) then you will find that after 1.5 years, you will start making profit with the above bank. Meaning the initial credit of Wells FArgo and its other benefits will equalize after 1.5 years. After 1.5 years you will start making loss with Wells Fargo.
Please contact me if you need more details of the above bank.