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3.375% interest seem unrealistic?

99problems
Established Member

Re: 3.375% interest seem unrealistic?

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.

Message 21 of 29
ezdriver
Senior Contributor

Re: 3.375% interest seem unrealistic?


@StartingOver10 wrote:

@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.

 


^^^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.


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].

 

Message 22 of 29
ezdriver
Senior Contributor

Re: 3.375% interest seem unrealistic?


@Marlena wrote:

@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.

 

 


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


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

Message 23 of 29
StartingOver10
Moderator Emerita

Re: 3.375% interest seem unrealistic?


@ezdriver wrote:

@StartingOver10 wrote:

@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.

 


^^^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.


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].

 


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.

Message 24 of 29
treefrogger
New Contributor

Re: 3.375% interest seem unrealistic?

Navy Federal does offer a rate lock of up to 180 days.
Message 25 of 29
StartingOver10
Moderator Emerita

Re: 3.375% interest seem unrealistic?


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

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

Message 26 of 29
dpeezy
Valued Contributor

Re: 3.375% interest seem unrealistic?


@StartingOver10 wrote:

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

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


  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
Mortgage Loan Officer licensed in CA & AZ


Message 27 of 29
StartingOver10
Moderator Emerita

Re: 3.375% interest seem unrealistic?


@dpeezy wrote:

@StartingOver10 wrote:

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

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


  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

^^^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.

Message 28 of 29
Revelate
Moderator Emeritus

Re: 3.375% interest seem unrealistic?


@StartingOver10 wrote:

@dpeezy wrote:

@StartingOver10 wrote:

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

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


  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

^^^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.


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?




        
Message 29 of 29
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