Got my mtg quote today - what do you all think?

[Anonymous]

Hi - I went to the bank today to refinance my 1st & 2nd mtg.  My combined am't for both were just under $130,000, house should appraise for $140,000.  I was quoted 7.0% fixed for 30 years.  My FICO ranges from 660-690, my annual income is approx. $60-70,000.  He figured my dti ratio for house was 24%, incl. other debt would be good also he said (I can't remember percentage now - but he said it was good).

Anyway - closing costs $325 - if rates go down to 6.5 or more before I close,  he said he'd get them changed, but I locked in to 7% just in case the rates would go up (with all the info in the news, just felt safer locking in rate).  Also, if in the future I want to refinance this mtg - my cost would be $200. 

I would appreicate the input.  I feel good about it.

Thanks!

Message Edited by basketsbears57 on 08-16-2007 03:39 PM

[Anonymous]

So what mortgage company is this you are working with?

[Anonymous]

I got this from a small bank. 

Also, today I rec'd a scorewatch from EQ and my credit score went up to 701!!!  It went up 29 points today!

Should I have a better rate than 7% on 30 years?

[Anonymous]

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basketsbears57 wrote:

I got this from a small bank. 

Also, today I rec'd a scorewatch from EQ and my credit score went up to 701!!!  It went up 29 points today!

Should I have a better rate than 7% on 30 years?

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Not with closing costs that low.  They're probably, in fact, trading rate for low fees.  You can get a better rate, pay more up-front, and save over the LONG TERM...but it's only worthwhile if you plan to keep that loan at least 4 years.

Call and ask them if you can pay points and get a lower rate.  See what they say.

[Anonymous]

Hi, Thanks for replying.  My mortgage broker had said that their fees are very low, and that if I wanted I could buy down rate - but I don't have much cash to do that so I think I will stay put on my rate.  Also, if I want to refinance if rates go lower, it would be just $200 to do that. 

Overall, I am very happy with my bank - just trying to make sense of all the different rates, terms, fees, etc.

Thanks again for your input!

[VLGaffEsq]

From your information (I'm in the same position of doing a refi/cash out in this wildly shifting market), I say lock and load, and pull the trigger.  Your loan and costs sound good, especially if your broker will change your interst rate if the Fed drops the rates (but don't count on it).  Do it and close your loan now...congrats!

[Anonymous]

Hi - Thank you.  I am really thrilled - just new to all of this - even tho' this is not my first house, I still feel very naive about everything.  I love this forum tho'  - I have learned so very, very much.

Thanks for all the input!  I have locked in the 7% and am just very very happy with my mortgage broker and the situation.

Have a great weekend!