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is this mortgage rate good right now?
i have spent the afternoon looking all over the internet and am very confused....
we just signed the contract on our house and need to lock in a mortgage rate asap ---- we both have excellent credit (over 800 each) and the guy we are working with can only come up with 6.2 right now --- compared to what i am seeing online it seems high to me - but im not sure... he says thats cause the rates online have points .. but i dont see them anyway --- some have fees, but i am assuming they are one time fees and the savings we would save a month on our mortgage wouls swallow them up in no time.
am i right? am i wrong?
please help
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Posted 2/28/07 4:11 PM  |
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Long Island Weddings
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: is this mortgage rate good right now?
We were loked in at 6%, so 6.2% is actually very good, cause I was locked in, in Dec.
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| Posted 2/28/07 4:13 PM |
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tray831
Dee-licious!
Member since 3/06 5355 total posts
Name:
His Baby
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Re: is this mortgage rate good right now?
That's about what I'm coming up w/ too. Between 6% and 6.25%.
You can get a lower rate w/ points.......but I think in the long run, the points aren't worth it b/c you end up spending more money. I'd love to get under 6% though. But it seems the lowest now.
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| Posted 2/28/07 4:14 PM |
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Re: is this mortgage rate good right now?
Posted by tray831
You can get a lower rate w/ points.......but I think in the long run, the points aren't worth it b/c you end up spending more money. I'd love to get under 6% though. But it seems the lowest now.
do points work taht you just pay once... cause on bankrate.com i saw 5.8 - and the dif between that and the 6.2 is almost 200 a month on the mortgage payment.. so im wondering if it would be worth it or not..
also does a good credit score get you a better rate?
who thought buying thia house woulkd be easy?
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| Posted 2/28/07 4:17 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is this mortgage rate good right now?
when you say you are looking all over the internet- where is that?
are you putting in your personal info- or are these just numbers you see on a website?
anything lower then 6% on website is most likely just a "teaser" rate- meaning that it is not actually the rate you would get - but a way to draw you in and then bait and switch at the last minute
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| Posted 2/28/07 4:23 PM |
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Re: is this mortgage rate good right now?
i was looking on bankrate.com
and i filled in the info
and they came back with a list
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| Posted 2/28/07 4:29 PM |
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tray831
Dee-licious!
Member since 3/06 5355 total posts
Name:
His Baby
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Re: is this mortgage rate good right now?
I'm not too sure of the mathematics of it other than its usually one point is $1K of every $100K you borrow.
If you borrow $500K from the bank, it will be $5K. I have read that buying points are sometimes a better investment if you plan on living in your house for a VERY long time. If not, its not worth it.
I do know mortgage brokers try and talk you out of it for some reason b/c they end up losing money on their profit. If the difference is $200 a month, I'd ask a bank or even a mortgage broker all honest opinions. In some cases you may break out even.
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| Posted 2/28/07 4:35 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is this mortgage rate good right now?
Posted by jsdesignz
i was looking on bankrate.com
and i filled in the info
and they came back with a list
I'm not sure then- if there are points- you don't see them in the rate
personally - I don't trust the computer as much as a trust a person- but I can ask my husband if 6.2% is the best rate out there right now- he's not a broker- he's banker- so it might be different
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| Posted 2/28/07 4:39 PM |
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Re: is this mortgage rate good right now?
ok i am going to have to go and sit down and talk to him..and try to understand this all better... he seems very he was recommended by a friend, but im also going to go and talk to someone else tomorrow. i just looked on wamu (our bank where we have our accounts) and they have 6.11 today as their fixed 30 year rate!
Message edited 2/28/2007 6:43:45 PM.
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| Posted 2/28/07 4:40 PM |
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lorich
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Member since 6/05 9987 total posts
Name:
Grammie says "Lora Gina"
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Re: is this mortgage rate good right now?
They mentioned on the news this morning that the rates s/b going down next week...but IMHO - it's always a gamble
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| Posted 2/28/07 4:44 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is this mortgage rate good right now?
this just in from the desk of my husband
No 5.875 is par at all a paper banks
( when asked if 6.2% is the best rate at 800 credit score)
however- that does not take into consideration loan to value (how much of a down payment)
but again- he is banker- not a broker
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| Posted 2/28/07 4:49 PM |
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Libragal07
Loving Summer.....
Member since 8/06 6636 total posts
Name:
Samantha aka Sammy Bones
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Re: is this mortgage rate good right now?
Posted by Beth1210
when you say you are looking all over the internet- where is that?
are you putting in your personal info- or are these just numbers you see on a website?
anything lower then 6% on website is most likely just a "teaser" rate- meaning that it is not actually the rate you would get - but a way to draw you in and then bait and switch at the last minute
I agree with everything Beth said, I do mortgages for a living too, so if you want me to pre qual you FM ME 
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| Posted 2/28/07 5:04 PM |
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KvsGrl
Round 2!!
Member since 1/07 1202 total posts
Name:
Samantha
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Re: is this mortgage rate good right now?
The way that it was explained to me is that 1pt = .25%.
So, if your mortgage is for $400,000 at 6.5% then your pmt is approx. $2553. If you paid 1pt ($4000) and your mortgage is for $400,000 at 6.25, then your pmt is approx $2487. It will take 60 mos (5 years) (4000/(2553-2487))to breakeven on the 1 pt. If you plan live in your house for longer than 5 years, it will be worth it.
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| Posted 2/28/07 5:05 PM |
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MrsPowers
So blessed!
Member since 11/06 10348 total posts
Name:
Ivelysse
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Re: is this mortgage rate good right now?
Posted by lorich
They mentioned on the news this morning that the rates s/b going down next week...but IMHO - it's always a gamble
Yes that could be as a result of the stock market yesterday.
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| Posted 2/28/07 5:17 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is this mortgage rate good right now?
Posted by MrsPowers
Posted by lorich
They mentioned on the news this morning that the rates s/b going down next week...but IMHO - it's always a gamble
Yes that could be as a result of the stock market yesterday.
rates are already lower then 6.2%- Jake quoted me 5.875% for perfect credit
I hope they dropped more!!!!
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| Posted 2/28/07 5:27 PM |
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MrsPowers
So blessed!
Member since 11/06 10348 total posts
Name:
Ivelysse
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Re: is this mortgage rate good right now?
Posted by Beth1210
Posted by MrsPowers
Posted by lorich
They mentioned on the news this morning that the rates s/b going down next week...but IMHO - it's always a gamble
Yes that could be as a result of the stock market yesterday.
rates are already lower then 6.2%- Jake quoted me 5.875% for perfect credit
I hope they dropped more!!!!
Sounds good to me!!!
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| Posted 2/28/07 5:33 PM |
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Calla
My girls
Member since 7/05 4303 total posts
Name:
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Re: is this mortgage rate good right now?
Posted by KvsGrl
The way that it was explained to me is that 1pt = .25%.
So, if your mortgage is for $400,000 at 6.5% then your pmt is approx. $2553. If you paid 1pt ($4000) and your mortgage is for $400,000 at 6.25, then your pmt is approx $2487. It will take 60 mos (5 years) (4000/(2553-2487))to breakeven on the 1 pt. If you plan live in your house for longer than 5 years, it will be worth it.
Unless you think rates will go down anyway and you can refinance to get the lower rate...
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| Posted 2/28/07 5:46 PM |
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KvsGrl
Round 2!!
Member since 1/07 1202 total posts
Name:
Samantha
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Re: is this mortgage rate good right now?
Posted by Calla
Posted by KvsGrl
The way that it was explained to me is that 1pt = .25%.
So, if your mortgage is for $400,000 at 6.5% then your pmt is approx. $2553. If you paid 1pt ($4000) and your mortgage is for $400,000 at 6.25, then your pmt is approx $2487. It will take 60 mos (5 years) (4000/(2553-2487))to breakeven on the 1 pt. If you plan live in your house for longer than 5 years, it will be worth it.
Unless you think rates will go down anyway and you can refinance to get the lower rate...
So is it never good to pay points?? I am new to this too! Any help would be appreciated... I decided to pay 1pt to get the lower rate b/c I would breakeven in 4 years and we def plan on staying longer than that...
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| Posted 2/28/07 6:43 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is this mortgage rate good right now?
Posted by KvsGrl
Posted by Calla
Posted by KvsGrl
The way that it was explained to me is that 1pt = .25%.
So, if your mortgage is for $400,000 at 6.5% then your pmt is approx. $2553. If you paid 1pt ($4000) and your mortgage is for $400,000 at 6.25, then your pmt is approx $2487. It will take 60 mos (5 years) (4000/(2553-2487))to breakeven on the 1 pt. If you plan live in your house for longer than 5 years, it will be worth it.
Unless you think rates will go down anyway and you can refinance to get the lower rate...
So is it never good to pay points?? I am new to this too! Any help would be appreciated... I decided to pay 1pt to get the lower rate b/c I would breakeven in 4 years and we def plan on staying longer than that...
my Husband plans on paying down the points when we buy- and he's a mortgage banker
it cost money to re-fi also- new closing costs etc-
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| Posted 2/28/07 7:35 PM |
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Calla
My girls
Member since 7/05 4303 total posts
Name:
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Re: is this mortgage rate good right now?
Posted by KvsGrl
So is it never good to pay points?? I am new to this too! Any help would be appreciated... I decided to pay 1pt to get the lower rate b/c I would breakeven in 4 years and we def plan on staying longer than that...
I live in Massachusetts now, maybe its different in New York. Here I am able to get a mortgage with no closing costs -- so refinancing if the rate drops makes sense. Its good to have paid points if the mortgage rate goes up in those four years, bad if the mortgage rates go down.
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| Posted 2/28/07 8:43 PM |
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KvsGrl
Round 2!!
Member since 1/07 1202 total posts
Name:
Samantha
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Re: is this mortgage rate good right now?
Posted by KvsGrl
Posted by Calla
Posted by KvsGrl
The way that it was explained to me is that 1pt = .25%.
So, if your mortgage is for $400,000 at 6.5% then your pmt is approx. $2553. If you paid 1pt ($4000) and your mortgage is for $400,000 at 6.25, then your pmt is approx $2487. It will take 60 mos (5 years) (4000/(2553-2487))to breakeven on the 1 pt. If you plan live in your house for longer than 5 years, it will be worth it.
Unless you think rates will go down anyway and you can refinance to get the lower rate...
So is it never good to pay points?? I am new to this too! Any help would be appreciated... I decided to pay 1pt to get the lower rate b/c I would breakeven in 4 years and we def plan on staying longer than that...
Thank you!!
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| Posted 2/28/07 9:18 PM |
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KvsGrl
Round 2!!
Member since 1/07 1202 total posts
Name:
Samantha
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Re: is this mortgage rate good right now?
Posted by Calla
Posted by KvsGrl
So is it never good to pay points?? I am new to this too! Any help would be appreciated... I decided to pay 1pt to get the lower rate b/c I would breakeven in 4 years and we def plan on staying longer than that...
I live in Massachusetts now, maybe its different in New York. Here I am able to get a mortgage with no closing costs -- so refinancing if the rate drops makes sense. Its good to have paid points if the mortgage rate goes up in those four years, bad if the mortgage rates go down.
No closing costs?!? I wish that were the case!!
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| Posted 2/28/07 9:19 PM |
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AOMom
LIF Adolescent
Member since 11/06 856 total posts
Name:
j
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Re: is this mortgage rate good right now?
The rate you get will depend on more than just a great credit score.
Are you putting down less than 20%? That can increase the lowest rate you get.
Is it a jumbo mortgage? those rates are higher.
Are there points? etc. etc. etc.
It's hard just to look online to see what rates you can get....when we bought a few years ago we met with a few mortgage brokers and got 3 very different rates. I wouldn't settle on one, it takes little time to get a 2nd or 3rd quote.
Good luck!! 
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| Posted 3/1/07 8:05 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: is this mortgage rate good right now?
Bethpage Federal Credit Union is showing 6% today for 0 points, 30 year fixed mortgage.
BFCU is showing 6.375% for 0 points, 30 year fixed jumbo mortgage.
I think you could get a better rate then 6.2 depending of course on your credit score and if your mortgage is a jumbo or not.
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| Posted 3/1/07 8:35 AM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: is this mortgage rate good right now?
In my experience, the internet rates are b.s. I've seen ads that are like "borrow $500K for $1700/month." Yeah right.
6.2 sounds good to me. Rates were going up and down when I locked back in October. The lowest I was able to get was 6.3 but by the time I locked it had gone up to 6.5.
It also depends on the type of loan you're getting, I think -- are you declaring your salary? If you are, that should make your rate a little better I believe.
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| Posted 3/1/07 9:50 AM |
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