Mortgage rates: Any advice on what's the best deal? Good credit, 10 percent down and total of around $220k.

Asked by Julia, Boca Raton, FL Fri Aug 8, 2008

Also, any idea what bank does not charge mortgage insurance due to just the 10% down?

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7
, ,
Fri Aug 8, 2008
Hi Julia,
I received your email from one of my realtors Karina. This is Greg Hayden from National City Mtg in Delray Beach, FL. National City is the 8 largest bank in the US and the 4th largest in Florida. We do loans in all 50 states. I myself have been doing mortgages for over 20 years. Please give me a call when you have a chance and I can answer all your questions. Rates vary by down payment ,credit score and reserves. Rates today were 6.375% on a 30 year fixed with no points. Any other programs your interested in just let me know. Hope to hear from you. Have a great weekend.

Gregory Hayden
Mortgage Banker
National City Mortgage,
A Division of National City Bank
109 SE 5th Avenue
Delray Beach , Florida 33483
(561) 526-4022 Office
(888) 218-2240 Toll Free
(561) 702-3854 Cell
(866) 621-8170 Fax
(561) 526-4024 Asst. Robin
Website: http://www.ncmc.com/GregHayden

My Motto: "Honesty,Integrity and Great Service"
1 vote
Scott Miller, Agent, Boca Raton, FL
Fri Aug 8, 2008
Hi Julia,

I'm hearing all kinds of different stories from my mortgage broker sources. One is that banks are requiring much larger down payments. I just closed a home last week and the buyer had to come up with over $250K on a $455K purchase, even though he had a 20+ year relationship with the bank.

Here are some rates from our hotsheet today:

Friday's Market Update
Following are mortgage program and rate options to give you an idea on what is available for fixed rates WITHOUT POINTS. All rates are based on strong credit and loan amounts of $417,000 or under. These are NOT teaser rates!


40 Year Fixed Rate: Low to Mid 7%'s
30 Year Fixed Rate: Mid 6%'s
15 Year Fixed Rate: Low 6%'s
3/1 Adjustable Rate: High 5% to Low 6%s
5/1 Adjustable Rate: Low 6%s

Rates are subject to change due to unforeseen market conditions and borrower's credit profile. Purchase rates may be lower than refinances. Interest rates based on a 30 day rate lock.

GOOD LUCK!

Scott Miller
Realty Associates
561-716-4060
1 vote
Toni Falcone, Agent, Fort Lauderdale, FL
Wed Jun 25, 2014
I'd love to help you. Please feel free to contact me through my Trulia profile.
0 votes
Leslie White, Agent, Stuart, FL
Sat May 3, 2014
When it comes to mortgages, it pays to get a referral from someone you trust. Rates are important, but honesty, and service are every bit as important. There is a lot of bait and switch out there. Ask your agent that you are working with for 3 names of mortgage bankers/brokers. Most agents, including myself, know who to avoid and who to work with.
0 votes
Antony Krith…, Agent, Delray, FL
Tue Dec 17, 2013
Hi Julia
Let me give you the best advice that I ever got from a Billionaire, yes that is with a B. Find a bank that is not mainstream. I got on the phone and started dialling "How many branches do you have?' "Oh 300 sorry too many." I eventually got a bank with only 3 branches, closed my account with Chase and opened up with them. Started a relationship with them , and I cannot stress that enough - a relationship. Now I get the best rates , the best service and am alround happier. I don't know if I am allowed to mention their name but it is Paradise Bank in Boca Raton.You are on the right track though, buy a place now as I don't think rates are going to stay low. Take care and all the best. Antony
0 votes
Cheryl Hale, , Mortgage Broker in Boca Raton
Fri Aug 8, 2008
Hi Julia,

With 10% down, you are not going to get away from the mortgage insurance factor. Right now, FHA would be your best bet for 90% financing. They do not do risk based pricing for higher loans to value as most othere lenders do, and the MI rates are very reasonalble.
As far as the best deal, rates change daily. So if you get a quote from someone today, and another quote on Monday, the rates could have changed, so the quotes will be moot as far as comparing apples to apples.
Rates also depend on your credit score, income ratios, reserves and other factors. So if a lender does not have 100% of your financial information, they may not be able to quote you properly. Also, just because someone quotes you a rate that involves "no points" doesn't mean you are getting the best deal. Brokers make commission on YSP or yield spread premium, so in effect, you pay a higher rate to pay their commission. This is not necessarily a bad thing, After all, they do deserve to get paid for their work. And getting a loan approved and closed takes many hours of hard work behind the scenes. And they don't get paid unless your loan closes.

In my opinion, your best bet is to talk to no more than 3 brokers or lenders. Pay attention to the fees on the Good Faith Estimates and point blank ask them how much commission they intend to make. Please do not expect a broker or lender to make $500 or so....there is an incredible amount of work involved. An ethical broker or lender won't be afraid to tell you their "fee". No hard and fast rules, but a reasonable commission is in the area of 2% or so of the loan amount. However, it takes just as much work to close a 100K loan as it does to close a 300K loan, so you can see how a broker working a smaller loan may charge a higher percentage. In addition, the broker, like a realtor, does not pocket all of the commission. Usually at least half of it goes to the "house" to cover overhead.

Hope this helps
0 votes
Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Fri Aug 8, 2008
Julia, every bank charges PMI if you borrow more than 80% in a single loan against the purchase price of a house. It's required for a bank to deliver your loan to Fannie Mae and Freddie Mac.

You might find a bank that will offer Lender Paid Mortgage Insurance (LPMI) - you'll pay for it in the form of a higher rate or extra fees. A good mortgage loan originator can provide you a side-by-side comparison.
0 votes
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