Is it too late to negotiate on Mortgage Interest Rate?

[Leeloo]

My loan is in underwriting and closing date is set for the end of this month. I have not signed rate lock paperwork yet. I'm concerned my interest is too high (5.375%, APR is 6.121%). Is there anything I can do to negotiate the rate down? Or is it too late?  My middle mortgage score is 758, LTV is 97%, downpayment is $4,500 and loan amount is 145,500. 

I was thinking about getting a prequal from another lender to compare, but that sounds like a bad idea.

When I asked my Loan Officer why my rate was so high she just advised it was due to the increase in interest rates by the FED back in December. However, the consumer finance protection bureau shows current interest rates in Florida for that loan amount range from 4.125-4.845, with the most common rates being 4.250 and 4.375.

My credit scores are good and my reports are clean. Based on my research, I was expecting a rate in the 4% range.

[Anonymous]

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@Leeloo wrote:

My loan is in underwriting and closing date is set for the end of this month. I have not signed rate lock paperwork yet. I'm concerned my interest is too high (5.375%, APR is 6.121%). Is there anything I can do to negotiate the rate down? Or is it too late?  My middle mortgage score is 758, LTV is 97%, downpayment is $4,500 and loan amount is 145,500. 

I was thinking about getting a prequal from another lender to compare, but that sounds like a bad idea.

When I asked my Loan Officer why my rate was so high she just advised it was due to the increase in interest rates by the FED back in December. However, the consumer finance protection bureau shows current interest rates in Florida for that loan amount range from 4.125-4.845, with the most common rates being 4.250 and 4.375.

My credit scores are good and my reports are clean. Based on my research, I was expecting a rate in the 4% range.

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What do those percentages consist of? Are they strictly P&I and APR or are other things rolled into it?

If you're not confident in your deal, then definitely run it by another lender. It can't hurt.

[Anonymous]

That is too high and looking at your scores, you should be able to get a better rate elsewhere.  Shop around and don't settle at all as it is not too late.

[ShanetheMortgageMan]

I agree that rate is too high for your scenario, but if you are getting a significant closing cost credit from the lender then it could make sense. 

However, you really don't have a lot of time... February is a short month, next Monday is a holiday, so that leaves 7 business days.

You will get a higher rate than what you see advertised, as there is a premium added on when you just put 3% down (vs. 5% down).  If you have the extra 2% to put down you should see better rates, so if that is something you could do then ask your loan officer what the rate would be if another $3k was put towards the down payment.

[kc0039]

That's a little high. Are they paying any of your fees?Are you by utilizing Lender paid Mortgage Insurance? If you are, that could explain the high interest rate. If you're paying monthly mortgage insurance then it's 4.25%

[DallasLoanGuy]

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@Leeloo wrote:

My loan is in underwriting and closing date is set for the end of this month. I have not signed rate lock paperwork yet. I'm concerned my interest is too high (5.375%, APR is 6.121%). Is there anything I can do to negotiate the rate down? Or is it too late?  My middle mortgage score is 758, LTV is 97%, downpayment is $4,500 and loan amount is 145,500. 

I was thinking about getting a prequal from another lender to compare, but that sounds like a bad idea.

When I asked my Loan Officer why my rate was so high she just advised it was due to the increase in interest rates by the FED back in December. <= the fed doesnt set rates However, the consumer finance protection bureau shows current interest rates in Florida for that loan amount range from 4.125-4.845, with the most common rates being 4.250 and 4.375.

My credit scores are good and my reports are clean. Based on my research, I was expecting a rate in the 4% range.

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higher ltv = higher rates.

most published rates are 740 fico with 20+ % down

but that still looks high.

[Leeloo]

So, I spoke with my loan officer again about why my rate was so high. She explained that the Down Payment Assistance program that I am using to help purchase my house has a fixed rate which is determined by agency issuing the assistance. In my case, I am receiving a grant on a conventional loan so my rate is higher than someone who maybe receiving DPA as a 0% second mortgage on a FHA loan. So there is no room for negotiating your rate no matter how good your credit score. 

Thank you to everyone who replied.