topic Re: Rate shopping? How much? NFCU/PenFed/LO in Mortgage Loans

Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Tue, 28 Jan 2020 19:47:31 GMT

How much should I rate shop? I’m meeting with a LO (not a broker) tomorrow but I am also a member ofPenFed and NFCU, should I have NFCU and/or PenFed take a shot at it too?

Middle score 725. Not worried about getting a pre approval but several options is better I assume? See what Mortgage America (recommendation from our real estate agent who) has to offer AS WELL AS NFCU? How’s Penfed, should they be included?

Re: Rate shopping? How much? NFCU/PenFed/LO

glockrunner — Tue, 28 Jan 2020 19:59:37 GMT

@Caught750 wrote:
How much should I rate shop? I’m meeting with a LO (not a broker) tomorrow but I am also a member ofPenFed and NFCU, should I have NFCU and/or PenFed take a shot at it too?

Middle score 725. Not worried about getting a pre approval but several options is better I assume? See what Mortgage America (recommendation from our real estate agent who) has to offer AS WELL AS NFCU? How’s Penfed, should they be included?

Sure, you always should. I plan on doing this in the next few months. I am a member of Navy and would love to get a mortgage from them but I would be shorting myself if I didn't shop with another lender or 2. Navy from what I hear would match other lender's rates. Worth it to shop.

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Tue, 28 Jan 2020 20:00:59 GMT

Thanks glockrunner! I was thinking the same!

Re: Rate shopping? How much? NFCU/PenFed/LO

Anonymous — Tue, 28 Jan 2020 20:54:23 GMT

Navy Federal has had the mortgage now on my last 3 homes. One thing to ask the other lenders about is NO PMI loans. NFCU is great about this and it makes a huge difference!

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Tue, 28 Jan 2020 20:55:49 GMT

Awesome info, thanks. So it’s definitely giving them a pull on each CRA?

Re: Rate shopping? How much? NFCU/PenFed/LO

Anonymous — Tue, 28 Jan 2020 21:01:32 GMT

When you shop a mortgage, the CRA's consider the pulls for a mortgage as "one transaction" if all done usually within a 1-2 week timeframe so you could shop 30 lenders if you wanted without any big hits to your score

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Tue, 28 Jan 2020 21:02:55 GMT

Yup, I’m aware. NFCU’s worth a look though?

Re: Rate shopping? How much? NFCU/PenFed/LO

Anonymous — Tue, 28 Jan 2020 21:12:23 GMT

Absolutly! Whatever the best offer you get - NFCU will match it so you have nothing to lose - they are one of the largest CUs in the country and solid as a rock - they are very relation oriented - I even have my business accounts with them now

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Tue, 28 Jan 2020 21:14:51 GMT

Awesome, I have a share acct and card there

Re: Rate shopping? How much? NFCU/PenFed/LO

CreditInspired — Tue, 28 Jan 2020 23:31:30 GMT

I didnt rate shop at all 2 years ago. Got a $0 down payment conventional loan, no points or fees, no PMI, and 4.25% interest rate; and I have not regretted my decision. And I will do my next mortgage with NFCU.

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Tue, 28 Jan 2020 23:29:56 GMT

Thanks CI! The pre app will be done right after the LO meeting!

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Sat, 01 Feb 2020 02:43:57 GMT

So both pre approvals are back. NFCU has better overall terms but the other lender had a 1% lower rate. The other loan has PMI, is it still worth asking NFCU to match or come down a little?

Re: Rate shopping? How much? NFCU/PenFed/LO

CreditInspired — Sat, 01 Feb 2020 08:25:24 GMT

@Caught750 wrote:
So both pre approvals are back. NFCU has better overall terms but the other lender had a 1% lower rate. The other loan has PMI, is it still worth asking NFCU to match or come down a little?

1% is a big difference. So just to make sure apples are being compared to apples, let us know the following things for each loan:

Type of loan

Downpayment
Interest rate

APR

Origination fee

Points

PMI cost

Any other fees (ex. Lender/processing fees)

Thanks

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Sat, 01 Feb 2020 11:59:35 GMT

Both are conventional
NFCU
0% down
Ranges from costs only to a total of 1% origination fee and 1.75 points
4.75% interest and 5.25% APR
No Mortgage Insurance
Closing total $8,900
A 1.75% processing fee is folded into the loan

MA
3% down
No points
No fees
3.875% and 4.55%
$165 PMI
Same closing plus the 3% down
Minus 1.75% fee, at least if it’s there I haven’t found it yet.

I’m kinda confused a little but I think they might actually end up being similar with NFCU being the better offer? Now that I look maybe nothing to ask for from NFCU. 725 middle score.

Re: Rate shopping? How much? NFCU/PenFed/LO

CreditInspired — Sat, 01 Feb 2020 13:38:47 GMT

@Caught750 wrote:
Both are conventional
NFCU
0% down
Ranges from costs only to a total of 1% origination fee and 1.75 points
4.75% interest and 5.25% APR
No Mortgage Insurance
Closing total $8,900
A 1.75% processing fee is folded into the loan

MA
3% down
No points
No fees
3.875% and 4.55%
$165 PMI
Same closing plus the 3% down
Minus 1.75% fee, at least if it’s there I haven’t found it yet.

I’m kinda confused a little but I think they might actually end up being similar with NFCU being the better offer? Now that I look maybe nothing to ask for from NFCU. 725 middle score.

Okay, so this is what I got:

NFCU

$264,550 loan (includes $4,550 funding fee)

4.75% int - $1,047.18 (total writeoff)

$252,200 (loan w/3% down - $7.8K)

3.875% int - $814.40 + $165 PMI = 978.40 (think PMI is not a writeoff)

MA saves you $68.18/month under this scenario.

Now if I were in your shoes, I would take the NFCU loan, but not roll the funding fee into it. I would pay funding fee upfront. This is $4,550 vs MA's $7.8K 3% down. Under this scenario, interest payment would be $1029.17, but you'd keep $3,250 in your pocket.

However, I'm still all about saving money so I would still ask NFCU if they would drop the interest rate to 4.25%.

Also, will MA service the loan. This is one thing I truly love about NFCU--they service their mortgage loans.

GL no matter which way you decide to go.

Re: Rate shopping? How much? NFCU/PenFed/LO

Caught750 — Sat, 01 Feb 2020 13:40:54 GMT

CI I’m messaging you please