I have a friend who is buying a house. He is trying to get the best rate. There are mortgage brokers that are offering a rate that is 0.125% better than the banks. Right now, that is around 6.25% for a 30 year loan at 80% financing. Are mortgage brokers the best deal? Thanks.
I like that your asking about a good mortgage… not the BEST. There is no BEST out there. If your friend likes the rate (more importantly the payment) then he should be ok.
Find a loan officer you like and can trust. When you get the good faith estimate keep in mind that the items from the loan officer are going to be:
Origination, Mortgage Broker Fee, Processing, Credit Report and if they are sneaky an application fee.
Most of the items the loan officer discloses to you are in fact 3rd party fee’s and in reality we have little control of this… Especially with a purchase since many of the service providers are picked by the agents.
Appraisal, tax service, underwriting, title/escrow, notary, doc prep etc… Also taxes and insurance.
Expect title and escrow to cost a pretty penny. Keep in mind that the companies that are used are typically picked by the agents but it is a negotiable item in the contract. If you shop around you maybe able to find better pricing. Make sure it is better for both you and the seller or the seller most likely will not be willing to change companies.
Regarding the rates… depending on the loan amount, credit, documentation etc… they may be great or they maybe on the high side. Without knowing the scenario it is hard to tell if the pricing is right in line; however 6.25% is not a bad rate.
Good Luck
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
It’s all about the brokers. They can give you as low of a rate as they want…it all depends on how much they want to make on the rate. Banks have a set amount they need to make per loan, then the loan officer adds on to that depending on how much they want to make.
6.25% sounds pretty decent, but when shopping rates, make sure your friends finds out what the closing costs are too. Some companies offer really low rates but then slam you with costs.
References :
Mortgage broker
I like that your asking about a good mortgage… not the BEST. There is no BEST out there. If your friend likes the rate (more importantly the payment) then he should be ok.
Find a loan officer you like and can trust. When you get the good faith estimate keep in mind that the items from the loan officer are going to be:
Origination, Mortgage Broker Fee, Processing, Credit Report and if they are sneaky an application fee.
Most of the items the loan officer discloses to you are in fact 3rd party fee’s and in reality we have little control of this… Especially with a purchase since many of the service providers are picked by the agents.
Appraisal, tax service, underwriting, title/escrow, notary, doc prep etc… Also taxes and insurance.
Expect title and escrow to cost a pretty penny. Keep in mind that the companies that are used are typically picked by the agents but it is a negotiable item in the contract. If you shop around you maybe able to find better pricing. Make sure it is better for both you and the seller or the seller most likely will not be willing to change companies.
Regarding the rates… depending on the loan amount, credit, documentation etc… they may be great or they maybe on the high side. Without knowing the scenario it is hard to tell if the pricing is right in line; however 6.25% is not a bad rate.
Good Luck
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
References :
Loan Officer, Mortgage Specialist
I have been consistently seeing rates in the 6.00% range for a 30-year fixed…with no points. Mortgage brokers usually can get low rates, but charge higher fees. It’s a tradeoff.
References :
I am a mortgage consultant – 50 states
http://www.robhenry.com