CAN WE GET A LOWER FHA RATE? ... WHAT DOES IT COST TO LOCK?

[shawneet]

Hey everybody,

We are about to go into underwriting and right now and we are doing FHA on new construction (tentative completion mid to late Sept.)  According to our LO (and our GFE), we are at 4.6% rate right now (price of home is $275,680...we're putting 3.5% down).  My hubby and my mid scores are 686 and 694 (so 686 for calculation).  We're in FL.  Do you think that we could (or should) be getting a better rate than 4.6% right now? I know that the rate increase has been bananas lately, but I'm thinking that perhaps there's a way possible to get something a little lower.  We are on the fence about shopping with another lender -- we only have about 10 days to decide so that this most recent credit pull will only count as one ding against us.  Any suggestions or comments?  We're really just ready for this whole process to be over ... with a house at the finish line, of course! Thanks guys!

[shawneet]

Oh, and we're in FL, if it even makes a difference.

[Amythyst]

Well, just to give you a reference... I locked in at 3.75% and my lender had originally quoted me at 3.25% - he said if I wanted to buy down to 3.25% it was gonna cost me like 3 or 4 thousand... can't remember exactly what it was but I remember saying HELL NO!

[shawneet]

Hey Amythyst ... that's still a very good rate.  Was it FHA? Where are you and when did you lock?  I don't think that I can lock yet because we still don't have a final closing date yet.  We haven't even done the drywall walk thru with the PM yet ... let alone still waiting to know the outcome from underwriting.  Uggh!

[Amythyst]

Yes, FHA.  Virginia and I locked at the end of last month.  My lender usually only does a 50 day lock for free but they made an exception and let me do 80 days for free.  Most lenders also have extended locks you can purchase which might be less than buying points.

[djacks]

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@Amythyst wrote:

Well, just to give you a reference... I locked in at 3.75% and my lender had originally quoted me at 3.25% - he said if I wanted to buy down to 3.25% it was gonna cost me like 3 or 4 thousand... can't remember exactly what it was but I remember saying HELL NO!

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There is no way you received that rate recently. No need to mislead the OP that something like that may still be available. Many experts declare the sub to low 4% days are long gone.

[basballguy]

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@djacks wrote:

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@Amythyst wrote:

Well, just to give you a reference... I locked in at 3.75% and my lender had originally quoted me at 3.25% - he said if I wanted to buy down to 3.25% it was gonna cost me like 3 or 4 thousand... can't remember exactly what it was but I remember saying HELL NO!

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There is no way you received that rate recently. No need to mislead the OP that something like that may still be available. Many experts declare the sub to low 4% days are long gone.

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I tend to dislike djacks responses but he's spot on here and makes a great point. 

[shawneet]

We started this process in mid March and we were figuring everything on a 3.4% rate at that time.  The 3% rates have all died and gone to Rate Heaven and now is the reign of the 4+ percents!! I would love to even get a 4.2 or 4.3% right now ... I know that's wishful thinking so if we can just get locked in before these rates hit the 5's then I'll still be grateful.  If they get any higher, we just may not be able to even afford this house. 

[djacks]

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@basballguy wrote:

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@djacks wrote:

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@Amythyst wrote:

Well, just to give you a reference... I locked in at 3.75% and my lender had originally quoted me at 3.25% - he said if I wanted to buy down to 3.25% it was gonna cost me like 3 or 4 thousand... can't remember exactly what it was but I remember saying HELL NO!

---

There is no way you received that rate recently. No need to mislead the OP that something like that may still be available. Many experts declare the sub to low 4% days are long gone.

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I tend to dislike djacks responses but he's spot on here and makes a great point. 

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Hard to figure out that of my whole 32 posts on this site that you've come to generally dislike my responses, but okay? Glad you agree with me on the rates now.

[Sunshine85]

BBT was quoting 4.125 on their website Tues & Weds- the rate includes a point charge of .8+ % and a credit score over 750. 

I think you could probably find something a little lower, but I wouldn't expect more than 1/8 to 1/4% difference.