3.375% interest seem unrealistic?

[Anonymous]

I'm locked in at 3.25% 30-year fixed VA loan, no points. Could a credit union beat this? NavyFCU couldn't even match it, so I ditched them.

All depends on variables, mainly: credit score, DTI, location, loan type. I don't think anyone could beat 3.25%.

Shopping around pays, hansomly. Check Zillow Mortgage Comparison for the best rates. Do your research on the lender, they also need to be able to close on target. I sacrificed a slightly higher lender credit for a more reputable lender.

[ezdriver]

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@StartingOver10 wrote:

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@ezdriver wrote:

As an FYI, I encourage all of my buyers to shop around and haggle with our inhouse lender for the best overall rate/fees package. In more than 3 years of working for this builder, I have yet to have a customer not go with our inhouse lender due to rate/costs. It pays to shop around because quoted vs lockable can vary quite a bit.

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^^^Agree with this. My clients that have used the lender I referenced above have never had an issue with getting the rate quoted. Naturally locking in doesn't happen until a property is under contract, which is usually quite soon after the rate quote.

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Are you referring to resales or new construction? Reason that I ask is that it takes us 5 months to build a home from signing a contract and buyers cannot lock more than 90 days from closing. Therefore, in my world, a rate quote before 90 days from closing is meaningless [not lockable].

[ezdriver]

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@Anonymous wrote:

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@ezdriver wrote:

For what its worth, my inhouse lender posted the following zero-points rates for this weekend:

FHA, VA & USDA - 4.25% for 30 yr fixed.

Conventional - 4.5% for 30 yr fixed.

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Thanks for that info. Makes me glad I closed when I did in April. I got 3.25% VA 30 yr fixed. Zero points.

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That is awesome. I am impressed...and happy for you.

[StartingOver10]

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@ezdriver wrote:

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@StartingOver10 wrote:

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@ezdriver wrote:

As an FYI, I encourage all of my buyers to shop around and haggle with our inhouse lender for the best overall rate/fees package. In more than 3 years of working for this builder, I have yet to have a customer not go with our inhouse lender due to rate/costs. It pays to shop around because quoted vs lockable can vary quite a bit.

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^^^Agree with this. My clients that have used the lender I referenced above have never had an issue with getting the rate quoted. Naturally locking in doesn't happen until a property is under contract, which is usually quite soon after the rate quote.

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Are you referring to resales or new construction? Reason that I ask is that it takes us 5 months to build a home from signing a contract and buyers cannot lock more than 90 days from closing. Therefore, in my world, a rate quote before 90 days from closing is meaningless [not lockable].

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I am referring to new homes that have c/o's, inventory homes. spec homes, resale properties and anything that can close in 30 to 60 days. Naturally homes not c/o'ed or otherwise on a long timeline (short sales for example), can not have a long lock period.

[treefrogger]

Navy Federal does offer a rate lock of up to 180 days.

[StartingOver10]

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@treefrogger wrote:
Navy Federal does offer a rate lock of up to 180 days.

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That is amazing! How much do they charge for the long lock periods?

[Anonymous]

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@StartingOver10 wrote:

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@treefrogger wrote:
Navy Federal does offer a rate lock of up to 180 days.

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That is amazing! How much do they charge for the long lock periods?

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1. The Extended Price Lock Commitments for Purchase Loans are as follows (VA loans are not eligible):
   • 90 days - additional 1/8 discount point or 1/8% in rate
   • 120 days - additional 1/4 discount point or 1/8% in rate
   • 180 days - additional 1 discount point or 1/4% in rate

[StartingOver10]

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@Anonymous wrote:

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@StartingOver10 wrote:

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@treefrogger wrote:
Navy Federal does offer a rate lock of up to 180 days.

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That is amazing! How much do they charge for the long lock periods?

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1. The Extended Price Lock Commitments for Purchase Loans are as follows (VA loans are not eligible):
   • 90 days - additional 1/8 discount point or 1/8% in rate
   • 120 days - additional 1/4 discount point or 1/8% in rate
   • 180 days - additional 1 discount point or 1/4% in rate

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^^^90 day lock isn't bad at all. 120 day lock is okay. But, wow, that 180 day lock is pretty expensive IMO. But, I guess it is worth it to some, especially if you are building and don't want to end up with an unkown by the time you close.

[Revelate]

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@StartingOver10 wrote:

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@Anonymous wrote:

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@StartingOver10 wrote:

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@treefrogger wrote:
Navy Federal does offer a rate lock of up to 180 days.

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That is amazing! How much do they charge for the long lock periods?

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1. The Extended Price Lock Commitments for Purchase Loans are as follows (VA loans are not eligible):
   • 90 days - additional 1/8 discount point or 1/8% in rate
   • 120 days - additional 1/4 discount point or 1/8% in rate
   • 180 days - additional 1 discount point or 1/4% in rate

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^^^90 day lock isn't bad at all. 120 day lock is okay. But, wow, that 180 day lock is pretty expensive IMO. But, I guess it is worth it to some, especially if you are building and don't want to end up with an unkown by the time you close.

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Discount points fluctuate like interest rates is my understanding from talking with my Chase LO for them; presumably if you're expecting interest rates to go up it's reasonable to charge a higher fee to lock it that far in the future from the lender's perspective.  I don't know if we're going to be higher or lower at the 180 day mark but if you are hedging your bets on the chance they're going to be non-trivially higher...

Edit: nasty thought leading to a question, but isn't the discount point / rate charged at closing?