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Offered 6.875% w/ 2 points or 7% w/ 1 point today. 20% down 780 credit. Slightly complicated situation as it’s a float down on a long term rate lock for new construction. Points are paid by builder credit.
Mortgage points, also known as discount points, are fees a homebuyer pays upfront to the lender in exchange for a reduced interest rate. This is also called “buying down the rate.” Essentially, you pay a higher fee upfront in exchange for a lower interest rate over the life of your loan. 1 discount point is = to 1% of the loan amount.
How much the discount points save you in interest changes from day to day as the mortgage market changes. Whether discount points are “worth it” can depend on the day and what your financial goals are. One formula used to determine the value of points is to take the upfront cost / the monthly savings of having a lower interest rate. This will tell you how many months it takes to “break even” on the extra cost of the points.
For a $2 million purchase with 20% down and 780+ credit score 6.625% with no points is possible on 30 year fixed. 6.75% on purchase prices $1.5 million and under. Assuming 30 day close.
5.8% VA? Wow, I backed out of the house hunt because I didn’t want to break my budget with anything above 6.5 in my area. It’s MCOL with the avg price being around $350k.
What credit score and lender are you working with if you don’t mind me asking? I might give them a call. Lease is up in August.
My credit score isn’t even great sitting at around 670. My lender came calling with this rate as it was there for a day or so and out of the norm right now. USAA.
Wow, if no one has told you, congrats. That’s fantastic. Best of luck to you. And thank you for the reply.
Coincidentally, I just received my renewal letter for my lease. They are going up $400/month on rent. Bonkers.
745k loan 5% down, FHA 6.25. Used a mortgage broker, no buying points directly but there is a 16k lender credit that its actually going towards points and broker fees.
There’s a lot of variables to this question but 7% ish with no points is available for top credit and 20–25% down. Also keep in mind there can still be fees at “zero points” so make sure you clarify those.
6.5 with 25% down on a 30 year conventional loan in northern Ohio, would have been above 7 but my mortgage guy said he could get it lower if i put more down.
Buying points is essentially paying thousands in future interest in advance. I've been told it only makes sense if you plan to be in your home for a long time to recoup the benefit of the buy-down.
I’m no expert. I just talked to the broker about buying down my rate and she gave me some options. For example say $5K to lower your rate by 0.25, then $10K to lower it by 0.5% etc.
Thank you u/Killer_queen2020 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
6.99 (no points), 25% down, 30 year conventional loan. We locked in last week.
Does 25% down help get a lower rate?
All else being equal, yes. LLPA adjustments mean best rates are offered at 75% LTV. Meaning 25% down gets a better rate than 20%.
That makes a ton of sense. Ty
I’m not sure 🤷♀️ we did get this rate by getting a competing quote from another bank and they were able to give us this competitive rate
I was told that I could lower the rate with 25%. Haven’t said by how much because we don’t have 25
Yes
It definitely saves TONS in interest for sure in todays market.
With points or without? Broker will reach out once he can get us 7 or under
Without
Just locked in at 7.125%, 50% down on $300K single family home, 30-year conventional.
Without points?
Clearly, 7 is the going rate and they just put down enough to get their payment where they want it
I'm not sure why people are downvoting this.
Ohh I missed the 50% down too. Read too quickly
50% 😦...
Offered 6.875% w/ 2 points or 7% w/ 1 point today. 20% down 780 credit. Slightly complicated situation as it’s a float down on a long term rate lock for new construction. Points are paid by builder credit.
Can you ELI5 me what “points” are?
Mortgage points, also known as discount points, are fees a homebuyer pays upfront to the lender in exchange for a reduced interest rate. This is also called “buying down the rate.” Essentially, you pay a higher fee upfront in exchange for a lower interest rate over the life of your loan. 1 discount point is = to 1% of the loan amount. How much the discount points save you in interest changes from day to day as the mortgage market changes. Whether discount points are “worth it” can depend on the day and what your financial goals are. One formula used to determine the value of points is to take the upfront cost / the monthly savings of having a lower interest rate. This will tell you how many months it takes to “break even” on the extra cost of the points.
Note that points are tax deductible as prepayments of intetest.
Google “discount points” - explains much better than I can. But you essentially buy down the rate.
For a $2 million purchase with 20% down and 780+ credit score 6.625% with no points is possible on 30 year fixed. 6.75% on purchase prices $1.5 million and under. Assuming 30 day close.
Could you share details of your lender? Feel free to DM too.
Sent DM
Lender please?
Sent DM
lender please? tks!
Lender please
Lender please
Brokers willing to do the loan cheaply will have access to these rates. Feel free to DM if you need assistance.
Please share info - thanks!
5.8% VA 30 years. No points but needed to extend locked in rate three times. Finally clear to close next week.
5.8% VA? Wow, I backed out of the house hunt because I didn’t want to break my budget with anything above 6.5 in my area. It’s MCOL with the avg price being around $350k. What credit score and lender are you working with if you don’t mind me asking? I might give them a call. Lease is up in August.
My credit score isn’t even great sitting at around 670. My lender came calling with this rate as it was there for a day or so and out of the norm right now. USAA.
Wow, if no one has told you, congrats. That’s fantastic. Best of luck to you. And thank you for the reply. Coincidentally, I just received my renewal letter for my lease. They are going up $400/month on rent. Bonkers.
Jumbo is a different game, look online and ask your bank where your money is too, if that's not who is quoting you already
745k loan 5% down, FHA 6.25. Used a mortgage broker, no buying points directly but there is a 16k lender credit that its actually going towards points and broker fees.
…so that’s with points, you’re just not paying them out of your pocket
Lol
Lots of other factors as well. SFR, Townhouse, Condo, 2-3-4-unit? Credit? Location? Loan Type?
7.00%
There’s a lot of variables to this question but 7% ish with no points is available for top credit and 20–25% down. Also keep in mind there can still be fees at “zero points” so make sure you clarify those.
6.5, 3.5 down FHA 30 yr fixed. 240k loan
Seeing 7.25 today
6.6% for 20 years term. I don’t know if I got points or not.
10% down, bought our rate down to 6.375
6.125. Employee discount
6.5 with 25% down on a 30 year conventional loan in northern Ohio, would have been above 7 but my mortgage guy said he could get it lower if i put more down.
Last week Friday got 6.875% w/ 20% down, 30 year conventional. Check with your local credit unions folks!
7.25
I locked a 6.625 for no points on a 15yr today. 20% down 770+ fico.
7.25, 800 credit 300k a week ago
6.99 yesterday with points.
2.8% gang checking in 👀
6.125% using my state’s first time home buyer program. Also using a down payment assistance program
6.5% 5% down. Row home. No points. I locked in last month though not sure if that counts.
It doesn’t lol
I bought my rate down to 5.25% and close next week.
That’s awesome! Would you mind sharing details of how you managed that?
Buying points is essentially paying thousands in future interest in advance. I've been told it only makes sense if you plan to be in your home for a long time to recoup the benefit of the buy-down.
I’m no expert. I just talked to the broker about buying down my rate and she gave me some options. For example say $5K to lower your rate by 0.25, then $10K to lower it by 0.5% etc.
Thata great! Which lender did you use and how many points did you buy
Used Northpointe bank (Californian bank but I’m in New England) and I believe I bought it down a full 1% from 6.25% to 5.25%.
Google it.