I'm in the process of buying a home I was give a rate of 5.3 which is the current rate

Asked by Beau Beaubien, North Hollywood, CA Thu Feb 5, 2009

but my broker told me that it would cost me 4k to get that rate eventhough it's the current rate what give. How does this work?

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Sally Javan, , Newhall, CA
Fri Feb 6, 2009
It would be good to contact a mortgage broker and have them run your numbers for you. Nobody really can quote a rate until they get the other information that affects what rate you get such as Debt to Income Ratio, FICO score, downpayment, etc. Call us and we can discuss further - the most important thing is to shop around which your broker will actually do for you instead of you calling all the banks out there to see whose rate is lowest.

Hope to hear from you,
Sally Javan
661-607-1955 cell
661-295-0555 ofc
1 vote
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Thu Feb 5, 2009
Hi Beau,
Good advice, check with a couple local banks - reputable lenders - and do some comparison shopping to make sure you're getting a fair shake. A lot of things can impact your rate: credit score, down payment, debt to income ratio etc. Borrowers with a stable income, low debts, 740 or higher credit scores, and 20% or more down typically qualify for the lowest rates. If any of these factors is off it could result in either a higher rate or more fees to secure that rate. As of today, 5.3% is a great rate, but even for teh best borrowers you'd probably need to pay some additional fees to get that rate since they've gone up in the last few weeks
1 vote
, ,
Thu Feb 5, 2009
Hi Beau,

The rate you were given could be based on numerous factors, including your own personal situation such as credit, occupancy plans, type of loan wanted/needed, etc. Direct lenders, and mortgage brokers will have different rates, on different days, they even change within the hours. Rates as far as I know, are in the low 5 range - I had a client quoted about 5.25 two days ago - and he has perfect credit, 20 percent down, etc.

Sometimes in lender will charge you discount point in order to get a certain rate. 1 discount point is equal to 1 percent of the loan.

Since so much varies based on the ledner you use, and the day you're getting a quote - it's always best to shop around, especially if you are concerned. But you only have so much time to do this, if you are already in an escrow, with timeles counting down.

Good luck.

The SCV Agents Team @ Realty Executives Valencia
Web Reference:  http://www.TheScvAgents.com
1 vote
Terrence Cha…, Home Owner, Allentown, PA
Thu Feb 5, 2009
Interesting name Beau,

Have you checked with other mortgage brokers? Today, it's best to look at the local places. Locally known banks and/or credit unions. They, for the most part, have not been affected by the bad loans which got us into this mess. They will generally have the money for the loans and they may not have so many hoops to go through. Also, they won't be as expensive, or they shouldn't be.

Terrence Charest, e-Pro
1 vote
Joel Javan, , Santa Clarita, CA
Fri Feb 6, 2009
Loan Connectors

She should be able to help you secure a loan.

Good luck!
0 votes
Michael Barr…, Agent, Irvine, CA
Thu Feb 5, 2009
Hi there Beau,. This sounds strange. You should talk to at least 3 lenders before you commit to one.
There is not enought backround information in your question fopr asnyone to really interpet it and offer you useful advice. If you are interested in talking tio a great lender, feel free to drop me an line ansd I can send you some names of lenders that have really helped my clients

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Feb 5, 2009
You need to shop around. Rates are based on a variety of factors, most importantly your FICO and amount of downpayment. I would be happy to refer you to some lenders to shop.
0 votes
Dana Schuster, Agent, Slidell, LA
Thu Feb 5, 2009
Going to different lenders to get a better rate is excellent advice. I had a buyer last week who was quoted 5.3 with one lender,went to another and got 4.5
0 votes
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