refinancing-offer at 4.875% -30 yr fixed - agent offers $2400 credit - asks $450 appraisal fees - will be credited. believable ?- other advise?

Asked by Mini, San Jose, CA Fri Jul 2, 2010

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21
Michelle Vel…, , Burlingame, CA
Fri Jul 2, 2010
Mini, I have 6 lenders that can do that loan at No cost to you; and several more that would do it at the $2400 credit you are looking for.

Depending on your FICO score, whether or not you are pulling cash out or doing a rate/ term refinance and the loan against the value of your home... it is a very believable rate. I would recommend moving forward on something.

Pricing has been low for the past couple of weeks and may not stay down this low for much longer.
1 vote
Ruth and Per…, Agent, Los Gatos, CA
Mon Jul 12, 2010
Hi Mini:

It is believable.

Go to http://www.bankrate.com or http://www.amerisave.com to name a few and you will be convinced.

Best Regards
Perry
Web Reference:  http://www.ruthandperry.com
0 votes
Dallas Texas, Agent, Dallas, TN
Sun Jul 11, 2010
Without reviewing the paperwork difficult render an opinion . Keep in mind there are closing costs of approx. $5000 - or + rolled into the back end of your note. Question is how long do you intend keep your home?

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Pat & Steve…, Agent, Westlake, OH
Sun Jul 11, 2010
I always suggest that my Buyers shop for the best "deal" with local banks and mortgage. Sometimes the local banks have the best rates and terms.
0 votes
Gregorio Den…, , San Diego, CA
Thu Jul 8, 2010
"All the brokers or lenders on this site that are throwing around interest rates also need to include the APR, if not, you're definitely in violation. Just FYI."

FYI Nancy,
The borrower quoted the rate, if the borrower were to ask for a rate quote they would get the rate and APR. And FYI again, the APR on a 4.875% rate with all the fees credited is $4.875%
Web Reference:  http://WeFixRates.Com
0 votes
Gilbert Rich…, , Santa Clara County, CA
Tue Jul 6, 2010
Gregorio it depends when they locked. If it was it the last two weeks you're correct. If it was 4 -5 weeks ago that pricing was pretty competitive. You still don't know the details outside the loan amount so you really can't say if it is a horrible deal or not.
0 votes
Gregorio Den…, , San Diego, CA
Tue Jul 6, 2010
Not sure where you all are pricing your high balance loans, but that's a terrible deal. 4.875% at 80% assuming a 740 FICO should credit almost 2.5 points ($11,500)
Do you mean they are giving you back $2400 at closing (which would not be possible since $2000 is max) or are they just crediting $2400 towards closing costs? If the latter, you should look around for someone who has more aggressive pricing.
Web Reference:  http://WeFixRates.Com
0 votes
Gilbert Rich…, , Santa Clara County, CA
Sat Jul 3, 2010
Do not touch AIM loan I have had clients who had an nightmare experience with them. As for your question that is more than reasonable depending on the terms of your loan and your fico.

I could easily match that if not more. It may have been more depending on the day your lender locked. So if I know I could do the same offer and better your deal is a pretty reasonable one.

In other words your LO is giving you a pretty descent deal. Rates are somewhat better but your LO may have locked on a day when what he quoted to you was the rate price. So i wouldn't change loan officers if he is giving you a good deal.

A word of advice. Never take out of state advice on a CA property especially when it comes to a lending question. Our requirements are far different than any other state. Which makes advice from even the most savy real estate professionals not applicable to your situation.

Sorry Alma, I mean no offense but AIM loan has caused more harm than good in Northern California and they have had several complaints filed against them.
0 votes
Alma Kee, Agent, Tampa, FL
Fri Jul 2, 2010
Hi Mini,

I would spend 15 minutes and get a second quote from http://www.AimLoan.com

They generally have the lowest rate and "lender related fees" and they're based out of San Diego.

Carefully exam both Good Faith Estimates and you will be able to immediately see which is the best deal for you.

Here is a really good website to learn info on mortgages: http://www.mtgprofessor.com

All the best,
Alma
0 votes
, ,
Fri Jul 2, 2010
Your credit scores, loan-to-value, and the rate lock period he will give you will determine how good a deal this is. With the way pricing is now, if you have scores above 740, and are planning a rate/term refinance, you could easily get 4.75% with no points, if you havea low loan-to-value, and can close in 30 days, you can easily do 4.625%. I wouldn't worry about the credit because most likely you have paid down enough to go back to your original loan amount, or even less, and still cover your closing costs. The question is what your rate is now, so you can decide whether this is worthwhile.
0 votes
, ,
Fri Jul 2, 2010
Mimi, the broker is making a little over $5,000 with that rate. Provided this is a rate & term refinance at 80% LTV or less and you have a 700+ FICO. Plus, crediting you $2,400 toward settlement costs. This is a very good deal.

I suggest you accept this offer. .... Happy funding, Rudi
Web Reference:  http://www.umboc.com
0 votes
Jacob Varghe…, , San Jose, CA
Fri Jul 2, 2010
Hi Mini,

Is this a purchasee or refinance? What is your FICO? What is your DTI? What is the pruchase price? When do you plan to close?

Jacob Varghese
Web Reference:  http://swanloans.com
0 votes
Glen Mitchell, Agent, Half Moon Bay, CA
Fri Jul 2, 2010
so above $417 pricing goes up a little. What is the value of the home and are you a wage earner that can fully doc income info? Glen
0 votes
Mini, Home Buyer, San Jose, CA
Fri Jul 2, 2010
Our loan amount is 460K
Our loan amount is 460K
0 votes
Glen Mitchell, Agent, Half Moon Bay, CA
Fri Jul 2, 2010
You might want to check another broker too. You dont give loan amount or credit scores, but 4.875 might actually be high. I know lenders who quoted 4.25% with one point for conforming loans last week. On a $300k loan thats $112 a month less on your payment each month.

Glen
Broker
0 votes
Jacob Varghe…, , San Jose, CA
Fri Jul 2, 2010
I would go for a lower rate rather than taking the $2400 credit. Are you planning to live in the place long? Is the loan amount less than 417K or greater than 417 but less than 729K?

Jscob Varghese
http://www.swanloans.com
Web Reference:  http://www.bestcaloans.com
0 votes
Thuan Nguyen, Agent, San Jose, CA
Fri Jul 2, 2010
Both good answers. What you were quoted is believable. Today for example, the national 30 year fixed mortgage rate is 4.5-4.75. Just have everything in writing and double checked. Good Luck.
0 votes
G, , Denali County, AK
Fri Jul 2, 2010
Get it in writing with their signatures and estimated HUD and you are good to go. Also ask for references of previous clients.
0 votes
Michelle Vel…, , Burlingame, CA
Fri Jul 2, 2010
Additionally, I would ask for the Good Faith Estimate but since that has changed since January of this year, you should also ask for the initial fees worksheet. That way you can actually see what you are being charged.
0 votes
Michelle Vel…, , Burlingame, CA
Fri Jul 2, 2010
Hello Mini,

Yes, that is very believable. Interest rates have come down quite a bit. What is your loan amount? Are you refinancing or purchasing? Generally, appraisal has to be paid upfront and we typically credit it back in escrow.
0 votes
Andrea Wince…, Agent, Milpitas, CA
Fri Jul 2, 2010
Hello Mini, my advice would be to get all the "promised" terms of your loan IN WRITING in the form of a GFE-Good Faith Estimate. The terms, conditions and total cost of your loan including escrow and closing fees should be itemized on the GFE. Then, prior to signing loan documents, ask your escrow officer for another estimated closing statement to ensure your costs are what you were promised.
0 votes
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