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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Should I jump on this interest rate deal?
I can get an 80/10/10 mortgage.
Interest rate on the 1st loan is 5.375%.
It only comes with a 30day lock which isn't thrilling... but I can extend it another 30 days for $790 buks.
To get this rate... I have to pay about $2100 in lending fees plus my closing costs. Total closing costs with the lending fees will be about 12-13k on a mortgage of 316k in Nassau.
I HATE paying any sort of lending fees... but this is a very good rate.
My other option is to stick with Chase at 5.75% with only $300 buks in lender fees.
I worked it out... if I took the lower interest rate... my payment is $75 buks a month cheaper... and I break even the lending fees in about 2.5 years.
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Posted 9/12/05 12:15 PM  |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
1st loan at 5.375% is a 30yr fixed... obviously. 
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| Posted 9/12/05 12:16 PM |
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BrunetteMom
LIF Adult
Member since 8/05 1480 total posts
Name:
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Re: Should I jump on this interest rate deal?
That's a pretty tough choice. Have you already found a house?
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| Posted 9/12/05 12:45 PM |
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ckdk
My girls
Member since 5/05 7027 total posts
Name:
Cheryl
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Re: Should I jump on this interest rate deal?
if you already worked it out and you cover those costs in 2.5 years, then I would definitely take that rate...assuming you are planning on staying at least that long and with a house, i'm sure you are.
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| Posted 9/12/05 12:48 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
Yeah. Signing contracts this week.
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| Posted 9/12/05 12:48 PM |
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BrunetteMom
LIF Adult
Member since 8/05 1480 total posts
Name:
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Re: Should I jump on this interest rate deal?
Posted by DjPiLL
Yeah. Signing contracts this week.
Congrats!!
Then yes, I would def take that rate.
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| Posted 9/12/05 12:51 PM |
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btrflygrl
me and baby #3!
Member since 5/05 12013 total posts
Name:
Shana
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Re: Should I jump on this interest rate deal?
we have a straight FHA mortgage at 5.75%
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| Posted 9/12/05 12:56 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
I think I am going to jump on it.
The rates have stayed flat at around 5.375% for about a week. If they were going to dip lower... I think they would have already.
Gas prices are coming down... so I don't think I will see better rates.  I am even surprised the rates didn't go up today.
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| Posted 9/12/05 1:09 PM |
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ckdk
My girls
Member since 5/05 7027 total posts
Name:
Cheryl
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Re: Should I jump on this interest rate deal?
That's fair to say, I really don't think they are going down either.
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| Posted 9/12/05 1:22 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
Well I just did a mortgage application with them. Lets see if they hit me with any BS.
Usually when people advertise low rates... a lot of times there is a "catch".
I'm just glad I am very good at identifying and smelling BS when it gets presented to me. We'll see.
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| Posted 9/12/05 1:57 PM |
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dengal
Dad of Twins
Member since 5/05 1385 total posts
Name:
The 80's Man
Let's Go Mets!
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Re: Should I jump on this interest rate deal?
OK, I'm not sure if I'm too late to chime in here, but I would have gone with the 5.375 rate. Your closing fees are just about in line with what I paid (Suffolk County) before land preservation funds (BS). My loan was for a little bit more money, but it was a new construction so there was vitually no tax reimbursement to the builder.
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| Posted 9/12/05 3:52 PM |
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Corinne
My munchkins
Member since 5/05 5010 total posts
Name:
corinne
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Re: Should I jump on this interest rate deal?
when you extend the loan and pay the $700 you can write that off during your first year of taxes they told us that we had to extend since the people wouldnt get out in 30 days.
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| Posted 9/12/05 3:54 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
I thought you can only write off points... not lenders fees.
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| Posted 9/12/05 4:00 PM |
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dengal
Dad of Twins
Member since 5/05 1385 total posts
Name:
The 80's Man
Let's Go Mets!
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Re: Should I jump on this interest rate deal?
There are some things can be written off. I'll be honest with you, I'm not sure which things can and can't be. At tax time, I gave my accountant all of my closing paperwork and he figured it out.
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| Posted 9/12/05 4:06 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
Lets see what they say and what line of BS they hand me.
Hopefully all will go well. They have my mortgage application. They can't say my credit is bad being I am an 807 and wifey is 815.
If they say "oh we can only get you 5.5% because the market changed"... or some crap related to that... i'll tell them to piss off.
LOL
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| Posted 9/12/05 4:06 PM |
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dengal
Dad of Twins
Member since 5/05 1385 total posts
Name:
The 80's Man
Let's Go Mets!
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Re: Should I jump on this interest rate deal?
Posted by DjPiLL
Lets see what they say and what line of BS they hand me.
Hopefully all will go well. They have my mortgage application. They can't say my credit is bad being I am an 807 and wifey is 815.
If they say "oh we can only get you 5.5% because the market changed"... or some crap related to that... i'll tell them to piss off.
LOL
I hear you. We got our current load through a credit union. There's a lot less fees and BS. However, their customer service was slow, so we had to stay on top of them. In the end, we did save money and got a good rate. At the time, we got what was considered a "jumbo" loan.
I still think the credit score is a bunch of BS too. They know you are going to be shopping around for loans - thus the credit checks.
Good Luck!
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| Posted 9/12/05 4:11 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
Well the broker called me and said I am in at 5.375%... no problem.
Thats good cause the national average went up a little bit today... so rates may have gone up.
My closing costs before escrow payments will be about 9k.... and thats with 60 days rate lock and all the lending fees included.
Not too bad.
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| Posted 9/13/05 11:48 AM |
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dengal
Dad of Twins
Member since 5/05 1385 total posts
Name:
The 80's Man
Let's Go Mets!
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Re: Should I jump on this interest rate deal?
Not bad at all. I think you got yourself a good deal. I'm sure rates will rise or fall slightly before you close, but being that you are now locked into a good rate, you don't have to worry about going to those same interest rate sites everyday. I still think I have some of them bookmarked 
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| Posted 9/13/05 12:00 PM |
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danielleandscott
My new 71 Super Beetle
Member since 5/05 13476 total posts
Name:
Scott
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Re: Should I jump on this interest rate deal?
Do you know what the rate went up to today?
Scott
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| Posted 9/13/05 12:13 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
Posted by danielleandscott
Do you know what the rate went up to today?
Scott
I am waiting to see what rates get posted. But the national average went up about .03%... so a lot of banks probably increased an 1/8 a point.
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| Posted 9/13/05 12:21 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Should I jump on this interest rate deal?
Actually it looks like a lot of lenders I checked out yesterday are posting the same rates today that they had yesterday. So rates may not have changed (at least here in NY).
But I was told bonds are slowly creeping up... which will push the rates up slightly.
Also it seems this Katrina talk is finally going away... which won't help in dropping the interest rates even further.
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| Posted 9/13/05 12:30 PM |
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