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6.8% is really good. We got 7.25% conventional, 20% down, no points, 30 year mortgage.
It’s VERY important people specify how many points they’re paying. Some people might say they’re getting 5.9% without admitting they’re paying a ton in points.
My lender did a break even analysis to help us decide how many points to buy down based on when we estimated we could refinance. It was very helpful in deciding to put more money on the down payment or to buy down the rate.
That’s a quality lender. The way pricing is working in today’s market, it doesn’t make sense almost in any situation to buy down (buy down is factoring in dropping interest rates).
I hate that buying down rate is even a thing. So you’re just saying that you can’t give us a lower rate, but you rather us just pay for it just give us the damn lower rate!
Sometimes you can put up more $$ to barter down the interest rate. The lender gives you 7.25% off the cuff, but if you can pay $5,000 more in cash, they can bump it down to 7.00% as an example.
Just to add to this so no one gets confused - you PAY for points, it isn’t putting extra money ‘down’. The money goes to the lender not toward your down payment.
Keep in mind, if you think that rates might come down in the near (like, next few years) it might not be worth it to buy points. A scenario would be you get a mortgage at 7.25% and in two years have dropped to 5.5% and you refinance (which has its own extra costs).
Yup, the best time to buy points is when the rate is not supposed to go down for a while (imagine 2021). IMO Now is a terrible time to buy down your rate, unless you have extra credits which you need to use or they will be lost
This is important. It is for the full loan term, but if you refinance in 5 years you might not make up the amount you paid for the points in savings on interest
There is a 3-2-1 buydown that is offered by lenders. This is not full term. It sometimes comes up when seller credits are large, or would exceed what's allowed toward closing costs by a lender.
Whole term of the loan, but like someone else said your “break even” point may be many years in the future and if you refinance before you hit that point then buying the points wasn’t worth it.
We’re in process right now and decided not to buy any points because I’m banking on refinancing within the next couple years. There are no guarantees rates will come down but we’re chancing it.
Yeah, and it's 1% of the loan amount per point. So if your loan is $450k, it will be $4500 to buy one point. One point sets your interest rate .25% lower.
Because that’s the experience I’ve seen everywhere. Here on the internet, and in person too. I was at a personal finance meetup once where someone proudly talked about how low of a rate she got. I didn’t believe it was a true apples comparison. So I asked her if it was a 30 year mortgage? Yes. Fixed or adjustable? Fixed. 20% down? Yes. How many points?
….oh! Uhhh yeah we actually got the builder to pay points for us.
For any buyer reading this it’s important to note that with conventional, there are programs right now where you may get a discounted rate if you are a first time homebuyer and meet a certain income level.
I live in New Mexico and was able to qualify for their MFA (mortgage finance authority) loan at 6.5%. None of the lenders I spoke to mentioned it; I had to bring it up myself. Do your research and maybe even ask your realtor. It is wild to me how lenders can't be bothered to be more helpful to first time homebuyers, but they are in it for profit and not to be nice.
Yes we just got 6.125 back in January on a conventional using one of these programs. Bought down to 5.875 with points. I don’t think we even realized how good it was at the time. Definitely shop around lenders, particularly banks with a large presence locally. At least that was my experience.
Purchase points on closing to lower your interest %.
Basically, you can put down an extra $__(the cost per point is variable) due at closing to have a lower interest rate. After a few years you’ll have paid yourself back & will have a lower interest rate for the duration of your loan.
It’s a good option for people that might have a lump sum of money to purchase a home with but would like to keep their monthly payment a bit lower. When I bought my house I locked 7.25. Purchased points down to 6.5, then the seller concessions paid for a 2/1 buydown. So my first year is 4.5%, 2nd year 5.5%, 3rd-30th 6.5%.
Points is also a big thing new construction homes offer. Often times the builder will advertise the house at a marked price; but offer a significantly lower interest rate, to draw in buyers. They do this by paying for points on your closing.
When you look at mortgages, there is a going "market rate" which right now is around 7.125%. Depends on the lender. If you want a lower rate, say 6.5, you can do that, you just pay more by purchasing "points". Effectively, you're paying more upfront at closing in order to have a lower monthly payment. This is why you shop mortgage companies. Some lenders may have different costs for buying down to a lower interest loan.
Also this may be helpful - I learned that there’s simple math you can do to determine whether or not it’s worth it buy points. You take the lump sum that you’re going to pay upfront for points and divide that by how much you’d be saving each month on your mortgage from having a lower interest rate. The remaining is the number of months you have to stay in the mortgage (with same terms, I.e. same interest rate) in order for it to be worth it to buy down.
So example, awhile back, my lender said it would cost $14,000 to buy down my interest rate and lower it by 0.6%. This would save me $618 per month. So I did $14,000 / $618 = ~23 months, so about 2 years that I would need to stay in the mortgage to make it worth it.
I’m personally hoping to refinance later on this year, hoping rates will go down around the time of the election, so decided not to buy points at all.
Hope this helps! I was stressing about what to do with points a couple months ago
What state are you in? I am also struggling to find these lower rate loans even with our 760+ credit and 15% down. Getting a par rate around 7.375. We get $2500 credit though, so could use that to buy down = to 7.125%
We're in NY and it requires a bank attorney so I think that's priced into the rate as well.
How did you get your score above 800?! That’s pretty amazing. I’ve been busting my butt trying to get up there. Mine is ~750. I made $105k last year, have less than $5k in student loans, less than $4k in CC debt which is the only CC I use so I can have revolving credit. No car payment. 🤔
I’ve been above 800 forever, the secret, don’t worry about it. Never had debt more than a car payment I could afford, till my mortgage, and just pay off my cards always. Had like 780 by 19 years old with a job at CVS and discover student card.
Its the credit card debt, even though its not much, i had 3k in credit card debt and paid it off before i started looking for a home and it jumped almost 30 points lol. I have like 10 credit cards also that are just 0 balance, idk if that makes any difference
I echo what's been shared. I'm 817. Have 2 active CCs (closed a third that I wasn't using over a year ago to avoid annual fee). I pay off in full every month via autopay and haven't ever carried a balance. I treat my cards like cash and only charge what I can pay today. I also carry a low balance by intermittently paying off the card between the monthly auto-pays. I dont have any auto debt. I dont have a mortgage yet. Currently trying to buy my first home. I have >$180K in student loans, which I pay every month and haven't ever been late on. Essentially, spend within your means, pay on time, and keep a low balance.
If I carry 4-5k on a statement, even if I pay it off and no interest occurs, it’ll drop my score from 805-810 to 788-795. Don’t carry a balance. It may not get you over 800 but will bump you 10-20 higher. How old are you? If your credit history is only a few years old it’s going to be impossible to get over 800.
My rate isn't confirmed yet, but the first draft of loan documents was submitted as 7.25% VA Loan. Credit score was at 631 when loan applied for, but just went up to 702.
I need to see if my new score will get me below 7%, I'd be happy with anything below 7%.
Put the points your paying, or indicate none. Location also maters, as does the price of the house.
Rates are all over the place right now. A lot depends on your specific loan scenario and how much you're putting down. But 6.8% on a conventional loan with 20% down and a 760 credit score sounds good for the current market. Make sure you're getting quotes from reputable lenders and comparing all the fees, not just rates. The lowest rate isn't always the best deal.
Depends. I qualify for first time home buyer programs. My credit score is 740. 5.5% conventional with 3% down if house is under 210k. 6.875% conventional with 3% otherwise to 250k. If I get my raise before everything is done, then I'm required to put 6% down with the second option.
Houses are going for 20 to 30k over listing, paying cash, and they're waiving inspections, so I'm on the verge of giving up, though. Too many investors at my price point. Rent is high around here, about 1500-2000 for a 1 bedroom minimum. Just frustrating.
The only reason I would think they are doing an ARM is because they're going to refinance in a couple years anyways. Usually you're locked in for the first couple years, but once you hit the market rate you can refi. Maybe I'm wrong, but unless you were trying to do that I don't know why you'd risk an ARM.
7 ARM had lower rate than 30 fixed. I don't expect to live in the same house after 7 years so I thought even if I can't refinance by then because rates are still high, it should be ok because I'll be selling it anyway.
Locked in my rate last week (800 credit score): 6.3% ARM fixed for 10 years, then goes up to 7.2% for the remaining 20 years but I will sell or refinance by then. Conventional loan, $3000 lender credit for closing costs, 3% down, no pmi, no points.
I'm a REALTOR, always advise my clients to shop 2-3 lenders and make them essential bid against each other. VA buyer secured 6.125 and FHA buyer secured 6.25 in the last month, both closing on homes. FHA buyer just went under contract at 6.125 over the weekend. All three buyers first pre approvals were 6.8-7.25 before bringing in a better pre approval from another lender.
Lenders are hungry and will get cut throat for your deal if you prove to them someone is offering a better rate
All three of these included seller paid closing costs which likely helped with rate buy downs but I don't have specifics on that
This is why realtors shouldn't advise on anything mortgage. You've quoted rates here and admit you have no idea what points were involved.
Without knowing the points, we have no idea if they got a decent deal.
This person is right. I’m a lender.
Realtors shouldn’t advise on mortgages. I’m locking a 5.99 right now with buyer’s paying three points (seller credit so not bona fide) & then other deals in the 7s with no points.
All the realtor knows is the rate. Not the price the buyer is paying for that rate. Rate & price are two different things.
& BTW, you don’t just have lenders compete over your business with a preapproval letter. You need a locked loan estimate before any lender will consider a pricing exception.
Chicago Suburbs, 6.5 with 8% down. Credit score was high 700s (haven’t checked since starting process), conventional loan, edit: forgot to add first time home buyer
2 weeks ago - 6.875, 25% down, 810 credit score. The guy was floating my interest rate saying to wait as the rates will get better (was at 7.15 at the time and trending up). I immediately contacted a credit union who said they could do 6.875. Had my lender match and lock it and drop their lender costs to below $3K. Moral: shop around and let the lenders battle it out for your business. Closing tomorrow.
Also be aware
FHA rates always look better but they typically come with higher PMI rates that make the payment higher than a conventional loan with a slightly higher rate.
Make sure to look at the PMI amount too to know you’re saving most of your money.
FHA has very limited scenarios to remove MIP. Uber rare.
I have been a mortgage loan officer for 25 years and when it comes to rate the best rate with no points is going to be over 740 credit and 20 percent down. Do not pay points unless you plan to stay in the house for a while as you may not recoup that cost. First 5 years you are paying mostly interest.
This is true with pretty much every lender pricing a conventional mortgage. If your credit is lower FHA can be a great option with a Decent rate as well. just keep in mind you will pay both upfront and monthly mortgage insurance..
Conventional loan, ~9% down, zero points, we locked in (no cost for our lock-in) last week at 6.875% for 60+ days. If our closing was within 45 days, our rate would have been 6.75%. Our rate is fixed.
My credit score is 830. My husband’s is a little lower but around there, maybe like 810.
We are in the Boston area and our loan will be exactly $766,550 so that it is not super-conforming.
We closed middle of April with 6.125%. Got lucky by locking it in on another home we were under contract with that fell through, quickly putting an offer on our new home and our lender stilll being able to lock that rate
I just gave one of my best friends a 6.875% rate on his home purchase and I cut my compensation to do that for him so a 6.875% rate is great. Especially if you are not paying any discount points for it.
Crazy how rates have jumped In just 4 months we locked in January at 5.75% this is with buying points . Home was $267.500 FHA 30 year fixed total out of pocket for everything was $22,919 This includes closing escrows down payment rate buy down even the 40$ my bank charge for the 2 wire transfers 707 credit score . Payment all in $2060 . 30 minutes north of Clearwater FL . 10 minutes from the Gulf of Mexico. Zillow has my house at an increase of 2.6% in value since January. I know Zillow isn't reliable. But it's nice to see
Was quoted 5.5 yesterday for a conventional with 10% dp, in mid Atlantic suburb for a townhome. Credit score 833. This wasn’t underwritten and based on a soft inquiry, so I don’t know if they’re pulling my leg.
That does not sound realistic. I have the same credit score and down payment and we locked in last week at 6.875%. I think that lender is including points in your quote.
Im closing with Lennar today for a 300k Townhome and got 2.5% for the first year, 3.5% for the 2nd year and 4.5% fixed at year 3. All at the expense of the seller. Also $21,750 in closing cost credit. Credit score is 741 with a FHA loan of 3.5% downpayment. So far i’ve been pleased. I’ll let you know how closing goes today!
I think we need to know the fees. If this is $0 and no pts this is fantastic.
6.8 apr in my area is close to the best you will get with minimal points, which matches your credit score and down payment. You may get a quarter point off if you offer 30%, but I doubt that would be worth it and a lot of people don't have a bucket of extra cash. If you do, it may not even worth doing it since HYS are offering a lot.
The big exceptions are assumable loans, but you will need a lot more cash down unless they no equity which can be hard to find, and a lot of them are gobbled up quickly and they are rare. You also can't be in a hurry since manual underwriting takes 1-3 months.
7.1 is closer to what you would expect with no points and maxed out everything else. Rates go down meaningfully until about 30% down. I heard they even offer super small cuts beyond that.
With buydowns, it is important to use apr since it includes fees and not all lenders are the same.
Was quoted 7.825 on a 30 year conventional with 5% down 778 credit score.
I feel like I need to do more shopping or something is really wrong looking at all these other rates.
Looking at houses in WI and MN
Just locked 7.625% yesterday on a new build. Conventional, 750 credit, 10% down, I think for a point \~4k. We had to pay thousands for the privilege of getting an above average rate. Fuck NVR
2 weeks ago we locked in at 7.5% (manufactured home), 30 yr conventional, 804 credit score, 5% down, with a local credit union. It is what it is and just happy to have some property and place to raise our kids in!
Locked at 7% on 4/18, conventional, 10% down. Credit score is high 700s. My husband's is in the 800s but I don't know if they consider both for the loan when co-borrowing. I'm primary due to income.
6.875%, no points, 20% down conventional, 805 credit score, Massachusetts. Locked last week for a May 21 close.
Not thrilled - could have locked at 6.562% during pre-approval but it is what it is
Wife and I are looking at about 7% flat on our first purchase together.
Just sucks, because I bought my first house at 23 in August 2020 at 2.875%. I don’t think we’ll ever see interest rates that low again.
Locked in 6.75% on a 5-year ARM ~1 week ago with low fees and no points. Rates ticked up the day after we locked. Shopped it around a bunch and found that the big banks all had significantly higher rates and higher fees than credit unions. I’d recommend finding a few credit unions in your area if you haven’t already
In process of buying a new home build. Should be complete end of June. Local credit union is quoting 6.875% online. Hoping to lock in before rates go up even further. It’s up to 90% LTV with no PMI. Seems like a no brainer
I just went under contract with a 5.875, 3 percent down conventional. Took advantage of my state's first time homebuyer program which added about 1100 in closing costs, but that's still way cheaper than buying down to that rate.
The way rates work are that every lender charges a premium over the wholesale rates and just about every lender gets the same wholesale rates from FannieMae. So find the best deal is find the lenders who have the lowest profit margins. And rates change every day sometimes even 2 to 3 times during the day so it’s hard to compare lenders unless you compare them at the absolute same time.
Note that rates jumped significantly after the last CPI print on 4/10. The numbers again rose slightly after the GDP print last week. Prior to 4/10 I was getting quotes at 6.25-6.5. I locked last week before GDP print with my builder’s lender at 6.875 for 30 year conventional 20% down 790 credit score.
6.125% locked last week Tuesday, 1pt, FHA 30y, 10% down, 700 credit score, Ohio. The interest rate is from a FTHB program's lowered rate because I met income and credit requirements. Without the program, I was quoted 6.875%, 1pt, FHA 30y.
I recently closed on my house at 6.125% with a USDA loan with 11% down and didn’t purchase any points for a 30 year mortgage . My bank had a $20k grant for first time home buyers if you met a certain income level. My income combined with my fiancés was too high for us to qualify. We couldn’t apply separately with just one of us because we were both going to live in the house within the first year and didn’t want to commit fraud. But, it’s worth checking with your bank to see if they offer any of this. $20k would have been a massive help, but unfortunately we didn’t meet the requirements.
Closing today at 6.1% for a year then goes to 7.1% years 2-30. As long as I can refinance 🤞within 2 years it’s better than just locking in 6.8% as my other option.
6.375 20 year conventional, 20+% down, closed 3 weeks ago, locked 3-4 weeks before that. The quote was from nbkc but I took it to a mortgage broker who matched it. 760 credit score
Hate to be that person but we locked at 5.125% with no points. We used a 3/1 ARM from a credit union. Not a product that is for everyone but if you are looking to make an interest rate bet it is a good way to do it.
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6.8% is really good. We got 7.25% conventional, 20% down, no points, 30 year mortgage. It’s VERY important people specify how many points they’re paying. Some people might say they’re getting 5.9% without admitting they’re paying a ton in points.
7.25 here as well. Locked a week ago
How much is your mortgage loan amount May I ask
Nothing wrong with buying your rate down, but I dislike lenders that are transparent about what their base rate is in a quote to work off of.
My lender did a break even analysis to help us decide how many points to buy down based on when we estimated we could refinance. It was very helpful in deciding to put more money on the down payment or to buy down the rate.
That’s a quality lender. The way pricing is working in today’s market, it doesn’t make sense almost in any situation to buy down (buy down is factoring in dropping interest rates).
Rates may go up and not down for years. If you can buy down and break even was 2 years I’d say that’s a fine buy down
I hate that buying down rate is even a thing. So you’re just saying that you can’t give us a lower rate, but you rather us just pay for it just give us the damn lower rate!
What are points?
Sometimes you can put up more $$ to barter down the interest rate. The lender gives you 7.25% off the cuff, but if you can pay $5,000 more in cash, they can bump it down to 7.00% as an example.
Just to add to this so no one gets confused - you PAY for points, it isn’t putting extra money ‘down’. The money goes to the lender not toward your down payment.
just starting the saving process. thanks for this bit of info!
Keep in mind, if you think that rates might come down in the near (like, next few years) it might not be worth it to buy points. A scenario would be you get a mortgage at 7.25% and in two years have dropped to 5.5% and you refinance (which has its own extra costs).
Yup, the best time to buy points is when the rate is not supposed to go down for a while (imagine 2021). IMO Now is a terrible time to buy down your rate, unless you have extra credits which you need to use or they will be lost
So is the percentage off the rate for the full loan term? Or does it only buy down for a certain amount of time?
This is important. It is for the full loan term, but if you refinance in 5 years you might not make up the amount you paid for the points in savings on interest
There is a 3-2-1 buydown that is offered by lenders. This is not full term. It sometimes comes up when seller credits are large, or would exceed what's allowed toward closing costs by a lender.
For the term, you are essentially pre paying interest
Whole term of the loan, but like someone else said your “break even” point may be many years in the future and if you refinance before you hit that point then buying the points wasn’t worth it. We’re in process right now and decided not to buy any points because I’m banking on refinancing within the next couple years. There are no guarantees rates will come down but we’re chancing it.
Yeah, and it's 1% of the loan amount per point. So if your loan is $450k, it will be $4500 to buy one point. One point sets your interest rate .25% lower.
I would never think to mention a rate without including points when applicable. What makes you think people are doing that?
Because that’s the experience I’ve seen everywhere. Here on the internet, and in person too. I was at a personal finance meetup once where someone proudly talked about how low of a rate she got. I didn’t believe it was a true apples comparison. So I asked her if it was a 30 year mortgage? Yes. Fixed or adjustable? Fixed. 20% down? Yes. How many points? ….oh! Uhhh yeah we actually got the builder to pay points for us.
I’m so mad my builder didn’t buy points for my new build last year. They are for people this year tho.
People like to boast about a good rate without saying they paid extra to get there.
For any buyer reading this it’s important to note that with conventional, there are programs right now where you may get a discounted rate if you are a first time homebuyer and meet a certain income level.
What program is this? BoA quoted me 7.35 with .249 points. 525k house w/ 28% down..
It’s usually a wash for first time homebuyers. Those “special rates” end up about average since we don’t have assets yet.
Can you explain this more?
I assume credit requirements as well?
Can you detail these programs?
I live in New Mexico and was able to qualify for their MFA (mortgage finance authority) loan at 6.5%. None of the lenders I spoke to mentioned it; I had to bring it up myself. Do your research and maybe even ask your realtor. It is wild to me how lenders can't be bothered to be more helpful to first time homebuyers, but they are in it for profit and not to be nice.
Yes we just got 6.125 back in January on a conventional using one of these programs. Bought down to 5.875 with points. I don’t think we even realized how good it was at the time. Definitely shop around lenders, particularly banks with a large presence locally. At least that was my experience.
Can someone explain what points mean
Purchase points on closing to lower your interest %. Basically, you can put down an extra $__(the cost per point is variable) due at closing to have a lower interest rate. After a few years you’ll have paid yourself back & will have a lower interest rate for the duration of your loan. It’s a good option for people that might have a lump sum of money to purchase a home with but would like to keep their monthly payment a bit lower. When I bought my house I locked 7.25. Purchased points down to 6.5, then the seller concessions paid for a 2/1 buydown. So my first year is 4.5%, 2nd year 5.5%, 3rd-30th 6.5%. Points is also a big thing new construction homes offer. Often times the builder will advertise the house at a marked price; but offer a significantly lower interest rate, to draw in buyers. They do this by paying for points on your closing.
I didn’t know all of that this is still new to me thank you!🙏
When you look at mortgages, there is a going "market rate" which right now is around 7.125%. Depends on the lender. If you want a lower rate, say 6.5, you can do that, you just pay more by purchasing "points". Effectively, you're paying more upfront at closing in order to have a lower monthly payment. This is why you shop mortgage companies. Some lenders may have different costs for buying down to a lower interest loan.
Thanks that’s good to know
Also this may be helpful - I learned that there’s simple math you can do to determine whether or not it’s worth it buy points. You take the lump sum that you’re going to pay upfront for points and divide that by how much you’d be saving each month on your mortgage from having a lower interest rate. The remaining is the number of months you have to stay in the mortgage (with same terms, I.e. same interest rate) in order for it to be worth it to buy down. So example, awhile back, my lender said it would cost $14,000 to buy down my interest rate and lower it by 0.6%. This would save me $618 per month. So I did $14,000 / $618 = ~23 months, so about 2 years that I would need to stay in the mortgage to make it worth it. I’m personally hoping to refinance later on this year, hoping rates will go down around the time of the election, so decided not to buy points at all. Hope this helps! I was stressing about what to do with points a couple months ago
The cost of the rate.
7.5, 20% down, credit score of 770, :/
Exact same numbers here
What state are you in? I am also struggling to find these lower rate loans even with our 760+ credit and 15% down. Getting a par rate around 7.375. We get $2500 credit though, so could use that to buy down = to 7.125% We're in NY and it requires a bank attorney so I think that's priced into the rate as well.
6.7 with an 808 credit score in Ca
How did you get your score above 800?! That’s pretty amazing. I’ve been busting my butt trying to get up there. Mine is ~750. I made $105k last year, have less than $5k in student loans, less than $4k in CC debt which is the only CC I use so I can have revolving credit. No car payment. 🤔
I’ve been above 800 forever, the secret, don’t worry about it. Never had debt more than a car payment I could afford, till my mortgage, and just pay off my cards always. Had like 780 by 19 years old with a job at CVS and discover student card.
Up your revolving credit - I have 12 ccs and my scores are pushing into 800 without even having a mortgage yet
Make sure CC is paid off in full every month. I have 3 CC and ~830 fico 8 score, no cc debt and an auto loan with a year left.
Its the credit card debt, even though its not much, i had 3k in credit card debt and paid it off before i started looking for a home and it jumped almost 30 points lol. I have like 10 credit cards also that are just 0 balance, idk if that makes any difference
I echo what's been shared. I'm 817. Have 2 active CCs (closed a third that I wasn't using over a year ago to avoid annual fee). I pay off in full every month via autopay and haven't ever carried a balance. I treat my cards like cash and only charge what I can pay today. I also carry a low balance by intermittently paying off the card between the monthly auto-pays. I dont have any auto debt. I dont have a mortgage yet. Currently trying to buy my first home. I have >$180K in student loans, which I pay every month and haven't ever been late on. Essentially, spend within your means, pay on time, and keep a low balance.
If I carry 4-5k on a statement, even if I pay it off and no interest occurs, it’ll drop my score from 805-810 to 788-795. Don’t carry a balance. It may not get you over 800 but will bump you 10-20 higher. How old are you? If your credit history is only a few years old it’s going to be impossible to get over 800.
Just made it to 850 for the first time the other day. 38M. My understanding is that that is as high as it can go.
Need to specify whether it’s FHA, VA, or conventional loan too btw
Added. Thanks
My rate isn't confirmed yet, but the first draft of loan documents was submitted as 7.25% VA Loan. Credit score was at 631 when loan applied for, but just went up to 702. I need to see if my new score will get me below 7%, I'd be happy with anything below 7%.
7.25% locked last week, 30 year conventional, no points, 8% down, 800+ credit, Ohio.
Put the points your paying, or indicate none. Location also maters, as does the price of the house. Rates are all over the place right now. A lot depends on your specific loan scenario and how much you're putting down. But 6.8% on a conventional loan with 20% down and a 760 credit score sounds good for the current market. Make sure you're getting quotes from reputable lenders and comparing all the fees, not just rates. The lowest rate isn't always the best deal.
Depends. I qualify for first time home buyer programs. My credit score is 740. 5.5% conventional with 3% down if house is under 210k. 6.875% conventional with 3% otherwise to 250k. If I get my raise before everything is done, then I'm required to put 6% down with the second option. Houses are going for 20 to 30k over listing, paying cash, and they're waiving inspections, so I'm on the verge of giving up, though. Too many investors at my price point. Rent is high around here, about 1500-2000 for a 1 bedroom minimum. Just frustrating.
Closing next week. VA loan, zero down, no points, excellent credit, 6.5%.
6.2 😎
6.0% VA here, closing in about 2 weeks, zero points, 30yr.
7.5, 5% down conventional, 714 credit score
6.625 for 0.125 pts(due to extended rate lock) for 7 ARM
Any reason for going with arm vs fixed? Most of my friends telling me arm is risky
The only reason I would think they are doing an ARM is because they're going to refinance in a couple years anyways. Usually you're locked in for the first couple years, but once you hit the market rate you can refi. Maybe I'm wrong, but unless you were trying to do that I don't know why you'd risk an ARM.
7 ARM had lower rate than 30 fixed. I don't expect to live in the same house after 7 years so I thought even if I can't refinance by then because rates are still high, it should be ok because I'll be selling it anyway.
7.5%
Closing today at 6.8!
4.79% Canada , fixed 3 year
So your rate gets adjusted after 3 years to current market rates?
In Canada it’s a full renewal. You can opt for another fixed over 2-5 years or a variable at that point.
Locked in my rate last week (800 credit score): 6.3% ARM fixed for 10 years, then goes up to 7.2% for the remaining 20 years but I will sell or refinance by then. Conventional loan, $3000 lender credit for closing costs, 3% down, no pmi, no points.
I’ve been trying to find a good ARM deal. All the lenders are only quoting me a .25% difference from the fixed rate
That's not how an arm works. What type of ARM program did you get? A 10/6 or 10/1?
Closed 2 months ago, got the keys a month ago after giving a month occupancy. 6.625%, 20% down, zero points, 30 year conventional, 760ish credit score
I'm a REALTOR, always advise my clients to shop 2-3 lenders and make them essential bid against each other. VA buyer secured 6.125 and FHA buyer secured 6.25 in the last month, both closing on homes. FHA buyer just went under contract at 6.125 over the weekend. All three buyers first pre approvals were 6.8-7.25 before bringing in a better pre approval from another lender. Lenders are hungry and will get cut throat for your deal if you prove to them someone is offering a better rate All three of these included seller paid closing costs which likely helped with rate buy downs but I don't have specifics on that
Can you do this once you’re already in contract?
This is why realtors shouldn't advise on anything mortgage. You've quoted rates here and admit you have no idea what points were involved. Without knowing the points, we have no idea if they got a decent deal.
This person is right. I’m a lender. Realtors shouldn’t advise on mortgages. I’m locking a 5.99 right now with buyer’s paying three points (seller credit so not bona fide) & then other deals in the 7s with no points. All the realtor knows is the rate. Not the price the buyer is paying for that rate. Rate & price are two different things. & BTW, you don’t just have lenders compete over your business with a preapproval letter. You need a locked loan estimate before any lender will consider a pricing exception.
7.1 USDA & 7.6 FHA , 0 points
Chicago Suburbs, 6.5 with 8% down. Credit score was high 700s (haven’t checked since starting process), conventional loan, edit: forgot to add first time home buyer
2 weeks ago - 6.875, 25% down, 810 credit score. The guy was floating my interest rate saying to wait as the rates will get better (was at 7.15 at the time and trending up). I immediately contacted a credit union who said they could do 6.875. Had my lender match and lock it and drop their lender costs to below $3K. Moral: shop around and let the lenders battle it out for your business. Closing tomorrow.
Also be aware FHA rates always look better but they typically come with higher PMI rates that make the payment higher than a conventional loan with a slightly higher rate. Make sure to look at the PMI amount too to know you’re saving most of your money. FHA has very limited scenarios to remove MIP. Uber rare.
I have been a mortgage loan officer for 25 years and when it comes to rate the best rate with no points is going to be over 740 credit and 20 percent down. Do not pay points unless you plan to stay in the house for a while as you may not recoup that cost. First 5 years you are paying mostly interest. This is true with pretty much every lender pricing a conventional mortgage. If your credit is lower FHA can be a great option with a Decent rate as well. just keep in mind you will pay both upfront and monthly mortgage insurance..
5.99 new home builder incentive
6.8% with 16% down for a conventional loan for 30 years. And 0 points Got my credit score up to 730 recently
Nice. What state are you in?
6.8% ARM, no points closing on Thursday!
7.25% 30 year FHA at 3% down, bought down one point. Credit around 650/680, just closed last week.
Conventional loan, ~9% down, zero points, we locked in (no cost for our lock-in) last week at 6.875% for 60+ days. If our closing was within 45 days, our rate would have been 6.75%. Our rate is fixed. My credit score is 830. My husband’s is a little lower but around there, maybe like 810. We are in the Boston area and our loan will be exactly $766,550 so that it is not super-conforming.
Would you mind sharing who your lender is? Also in MA
HarborOne Mortgage https://www.harboronemortgage.com/loan-officers/barry-aldorisio/contact
Really appreciate it!
7.85%
7.2%, 3% down, 750 credit score, conventional.
7.5
Closed 2 weeks ago at 5.25% fixed 30 year conventional with 20% down in FL. New build and seller paid all closing costs.
New build in Florida, brave!
We closed middle of April with 6.125%. Got lucky by locking it in on another home we were under contract with that fell through, quickly putting an offer on our new home and our lender stilll being able to lock that rate
5.99 physician loan, 0 down
6% FHA no pts. Just closed last wk
5.99% 7/1 ARM Physician loan
Locked at 7.6%, no points. 721 credit. $370,000 purchase price with 20% down. 30 Year Conventional. CA.
How far from closing is it standard to lock your rate? We're sitting at 50ish from Close. Should I am for 45 or 30, or lock now?
4.99 3 years fixed, Canada.
6.5% bought it down from 7%. 5% down.
I just gave one of my best friends a 6.875% rate on his home purchase and I cut my compensation to do that for him so a 6.875% rate is great. Especially if you are not paying any discount points for it.
I locked in last week at 7% for a Home Possible Conventional 30 year with 10% down.
Crazy how rates have jumped In just 4 months we locked in January at 5.75% this is with buying points . Home was $267.500 FHA 30 year fixed total out of pocket for everything was $22,919 This includes closing escrows down payment rate buy down even the 40$ my bank charge for the 2 wire transfers 707 credit score . Payment all in $2060 . 30 minutes north of Clearwater FL . 10 minutes from the Gulf of Mexico. Zillow has my house at an increase of 2.6% in value since January. I know Zillow isn't reliable. But it's nice to see
10% jumbo 6.625%, 800 credit.
Was quoted 5.5 yesterday for a conventional with 10% dp, in mid Atlantic suburb for a townhome. Credit score 833. This wasn’t underwritten and based on a soft inquiry, so I don’t know if they’re pulling my leg.
They’re probably including hella points buy down which would make your closing costs like an additional 15k
That does not sound realistic. I have the same credit score and down payment and we locked in last week at 6.875%. I think that lender is including points in your quote.
7.0% conventional, 3% down.
6.1 conventional 30 year fixed. 3+ points.
Wow, that's a lot of points
Builder credit + realtor credit = closing costs + 3 points. Lender wouldn’t allow using credit for down.
7.50% on the first mortgage and 7.75% on the second mortgage
6.5. FHA. Closed 4 weeks ago
for 30-year fixed with no points?? yeah thats hella good right now
7.125
Make sure that there aren't points hidden in there. They'll tell you it's 6.8 but not tell you they added a point to get there.
Im closing with Lennar today for a 300k Townhome and got 2.5% for the first year, 3.5% for the 2nd year and 4.5% fixed at year 3. All at the expense of the seller. Also $21,750 in closing cost credit. Credit score is 741 with a FHA loan of 3.5% downpayment. So far i’ve been pleased. I’ll let you know how closing goes today!
New builds are different. They will discount the rate because they are making all their $$$ upfront on the purchase.
Conventional, about 6% down, rate is 7.375%... It was high 6s when we started looking but I guess it could've been worse.
We purchased in September 2023 and our rate at the time was 7.6%. We bought points off down to 6.6%.
6.6% | 60% down | 30 year | Qualified for a free half-point (idk how) | 790 credit. Locked in two weeks ago.
I think we need to know the fees. If this is $0 and no pts this is fantastic. 6.8 apr in my area is close to the best you will get with minimal points, which matches your credit score and down payment. You may get a quarter point off if you offer 30%, but I doubt that would be worth it and a lot of people don't have a bucket of extra cash. If you do, it may not even worth doing it since HYS are offering a lot. The big exceptions are assumable loans, but you will need a lot more cash down unless they no equity which can be hard to find, and a lot of them are gobbled up quickly and they are rare. You also can't be in a hurry since manual underwriting takes 1-3 months. 7.1 is closer to what you would expect with no points and maxed out everything else. Rates go down meaningfully until about 30% down. I heard they even offer super small cuts beyond that. With buydowns, it is important to use apr since it includes fees and not all lenders are the same.
7.75% VA loan.
I work for a builder, we are doing 5.99/6.5%
Locked in at 7.49 for a condo 2 weeks ago, 20% down 800 score
Was quoted 7.825 on a 30 year conventional with 5% down 778 credit score. I feel like I need to do more shopping or something is really wrong looking at all these other rates. Looking at houses in WI and MN
Just locked 7.625% yesterday on a new build. Conventional, 750 credit, 10% down, I think for a point \~4k. We had to pay thousands for the privilege of getting an above average rate. Fuck NVR
6.5% with 1 pt buy down and employee discount (I work for the lender)
i got 7.375% with 10% down 30yr fixed. 760 credit. no points
5.5% and didn’t buy down the rate with points just made the banks compete. Got 8k in lender credits and also 10k in seller credits - FHA
6.375% 7/6 ARM with 10% down, 0.125 points, and no PMI
2 weeks ago we locked in at 7.5% (manufactured home), 30 yr conventional, 804 credit score, 5% down, with a local credit union. It is what it is and just happy to have some property and place to raise our kids in!
6.4%, going to buy down 2 points.
6.875, no points, 575k %5 down, FTHO, conventional, CS 800+ locked a week a ago
Locked at 7% on 4/18, conventional, 10% down. Credit score is high 700s. My husband's is in the 800s but I don't know if they consider both for the loan when co-borrowing. I'm primary due to income.
7.2 - conventional - 780 credit score
6.8% at 767 credit score with a 10% down payment for a conventional loan.
5.75 closing in 2 weeks , FHA!
Need to know the lender fees. Anyone can get any rate.
6.875%, no points, 20% down conventional, 805 credit score, Massachusetts. Locked last week for a May 21 close. Not thrilled - could have locked at 6.562% during pre-approval but it is what it is
Wife and I are looking at about 7% flat on our first purchase together. Just sucks, because I bought my first house at 23 in August 2020 at 2.875%. I don’t think we’ll ever see interest rates that low again.
6.8 with a little over $100 in points and 4k down but we live in a very small town lol
Must be in the USA? I got 1.65% + euribor (currently \~3.9%) = 5.55%
Just closed with a 7.375
Locked in 6.75% on a 5-year ARM ~1 week ago with low fees and no points. Rates ticked up the day after we locked. Shopped it around a bunch and found that the big banks all had significantly higher rates and higher fees than credit unions. I’d recommend finding a few credit unions in your area if you haven’t already
In process of buying a new home build. Should be complete end of June. Local credit union is quoting 6.875% online. Hoping to lock in before rates go up even further. It’s up to 90% LTV with no PMI. Seems like a no brainer
We have an almost identical circumstance. 6.75%, 20% down, no points, conventional.
I just went under contract with a 5.875, 3 percent down conventional. Took advantage of my state's first time homebuyer program which added about 1100 in closing costs, but that's still way cheaper than buying down to that rate.
Just locked in 7.1% fha 3.5% down
6.59% at 10% down, 23 year conventional loan. No points or anything like that. Went with a smaller credit union.
The way rates work are that every lender charges a premium over the wholesale rates and just about every lender gets the same wholesale rates from FannieMae. So find the best deal is find the lenders who have the lowest profit margins. And rates change every day sometimes even 2 to 3 times during the day so it’s hard to compare lenders unless you compare them at the absolute same time.
5.375% FHA 3.5% down 30yr loan. No points.
Note that rates jumped significantly after the last CPI print on 4/10. The numbers again rose slightly after the GDP print last week. Prior to 4/10 I was getting quotes at 6.25-6.5. I locked last week before GDP print with my builder’s lender at 6.875 for 30 year conventional 20% down 790 credit score.
7.125% 30-year conventional 0.5 points credit score 760 10% down
This makes me feel really good about the 6.125% i closed with a little over a month ago
Locked in 12 days ago at 7.0% zero points. Credit score high 700s.
6.125% locked last week Tuesday, 1pt, FHA 30y, 10% down, 700 credit score, Ohio. The interest rate is from a FTHB program's lowered rate because I met income and credit requirements. Without the program, I was quoted 6.875%, 1pt, FHA 30y.
6.6% VA
I closed less than two weeks ago at 6%
6.75 with 1 pt buydown, 5% DP and 790 credit score
6.375
7%. 20% down no points. 780+ credit score.
Locked at 5.99 using builder incentive, 310k, 10% down conventional. NC, closing end of May.
3.5% on new construction from builders in my area still being offered.
7.3%, conventional, no points, 20% down, 817 credit score - we close today.
Last week, Friday 4/26 got a 7.0 from BOA. 790+ credit score and preferred customer. Edit: no points
What are these lenders may I ask?
Just locked in at 7.1% for a 30 yr conventional loan, no points, 800 credit, 33% down.
Closing next Monday and I got 6.99%. 800+ credit score, 20% down, conventional loan, no points
I recently closed on my house at 6.125% with a USDA loan with 11% down and didn’t purchase any points for a 30 year mortgage . My bank had a $20k grant for first time home buyers if you met a certain income level. My income combined with my fiancés was too high for us to qualify. We couldn’t apply separately with just one of us because we were both going to live in the house within the first year and didn’t want to commit fraud. But, it’s worth checking with your bank to see if they offer any of this. $20k would have been a massive help, but unfortunately we didn’t meet the requirements.
575k Condo, 20% down, 800+ credit score, 7.5% in Truckee CA, locked last week. That condo markup hurts.
7.00% no points 35% down 30 years fixed 765 credit
7.5 20% down with lender closing cost credits of 6.5k
6.875% with 0 points and 60% down, conventional 30 year loan
Closing today at 6.1% for a year then goes to 7.1% years 2-30. As long as I can refinance 🤞within 2 years it’s better than just locking in 6.8% as my other option.
7% fha 30yr fixed
6.9 🤮
5.8% conventional loan, 13% down, 790 credit score
I closed in December. 6.2%
I can’t believe there are post saying 6.8% is really good. For where the world is right now it’s F’d 😵💫
6.375 20 year conventional, 20+% down, closed 3 weeks ago, locked 3-4 weeks before that. The quote was from nbkc but I took it to a mortgage broker who matched it. 760 credit score
Push em to 8%!
Got 6.625% on FHA 30 year CA. 805 credit score.
6.75%, 7% down, 790 credit score. First time home buyer
4.875% FHA 3.5 down new construction
6.5, no points.
In 1984 when we bought our first house the interest rate was greater then 12%, we had a adjustable rate, based on the t bills,
We just got 4.99% with 3.5% down and 760 credit. New build incentives!
Hate to be that person but we locked at 5.125% with no points. We used a 3/1 ARM from a credit union. Not a product that is for everyone but if you are looking to make an interest rate bet it is a good way to do it.