topic Re: New $625K conv loan ahead of 2022 - 3.625% rate ??? in Mortgage Loans

New $625K conv loan ahead of 2022 - 3.625% rate ???

4sallypat — Sat, 30 Oct 2021 14:41:55 GMT

So we finally got a contract accepted and escrow has opened on a home in San Bernardino county thanks to the new upcoming $625K conventional loan limit that some banks are offering ahead of the official 2022 release!

If it was not for the new loan limit, we would be looking forever (past 6 months).

Mortgage broker quoted on initial loan disclosure that the rate is 3.625% as of yesterday.

15 day floating loan lock hoping for a lower rate.

EEK !

Re: New $625K conv loan ahead of 2022 - 3.625% rate ???

LakeLife — Mon, 01 Nov 2021 15:59:15 GMT

I think for anyone to fully understand this rate, you'd need to offer up more data points. You're not really asking a question, so I'm not sure what you're after with your post though.

My wife and I just got a similar rate with NFCU, but we are buying a 2nd home with only 5% down and no PMI. Honestly, I felt lucky to get that rate, but it all depends on the circumstances.

Re: New $625K conv loan ahead of 2022 - 3.625% rate ???

4sallypat — Tue, 02 Nov 2021 14:45:15 GMT

@LakeLife wrote:
I think for anyone to fully understand this rate, you'd need to offer up more data points. You're not really asking a question, so I'm not sure what you're after with your post though.

My wife and I just got a similar rate with NFCU, but we are buying a 2nd home with only 5% down and no PMI. Honestly, I felt lucky to get that rate, but it all depends on the circumstances.

Sorry about the lack of DP - was so excited about our offer being accepted and escrow opening after searching for over a year!

My question is:

Is a rate of 3.625% normal for the "new" conventional loan limit that is supposed to officially take effect next year ?

There are some banks that are hedging their bets that offering the new higher limits will take on more customers but hoping they can resell it to other servicers at the FM conforming loan standards.

My DP:

720 mid/low mortgage score

5% down on 610K house

PMI $200 monthly

HOA $145 monthly

Re: New $625K conv loan ahead of 2022 - 3.625% rate ???

Mortgage-Specialist — Tue, 02 Nov 2021 15:20:36 GMT

That rate is excessive for your 720 score. Should be 3.15% with no lender fees. It's a difference of $152 per month