Except the brokers charge a bunch of fees to bring the apr up. I am sick of these places that advertise low rate and then add a bunch of fees or points to make up for it. Mortgage should be quoted with zero points or fees
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There should never be high variance between interest rate and apr. sent you a pm with an example
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@Cali do you think 3.125% with 0 points and no fee is a good deal or should I wait for the rates to fall even more? A mortgage broker is saying there is 0 cost for this refi and no third party fees. I will be paying down my loan balance to the max for a high balance loan of $510,400.
assuming its a 30 year, yea that’s fine. but have him define “no fee,” does he mean he’s rolling the title and escrow fees into the loan balance, is it being paid with a lender credit, etc.
its best to look at the Loan Estimate to see exactly what fees are being charged and how theyre getting paid
and its always good to compare your new loan amount to your payoff amount; or in your case, your payoff amount and the amount you have to come in with to close the loan
i do think rates will drop further next week, but i’t won’t be dramatic drops
Thank you for the info, I asked the broker to send me a loan estimate sheet.
I just got a 15yr fixed refi from BOFA at 3% apr with all costs waived except appraisal fee $1,200. Loan Amount = $899,00 (can bring it down to $750,000), Last Appraised = $2,560,000, Credit Score = 800+. We bought the house last year and current loan is with Chase at 4% 30 yr fixed. Is this good, I was hoping to see something closer to 2.87%
loan amount = $899,000, sorry missed a zero
hi LL can you share who you did the refi with?
If you’ve got money bring it over to bofa for 1 day and they’ll be hard to beat. Can drop the rate by as much as 50 bps.
Refi is higher than a purchase but did a purchase on a 7/1 at 2.125 with bofa with $7k lender credit. 30 was 2.875. And on top of that this was an investment property.
I know there is a rate discount for HELOCs, but I think for first mortgages the Preferred Rewards benefit is a reduction in the origination fee (discount based on relationship tier).
Do you have a link for more info?
Basically the big banks will offer a discount for moving assets over. Wells Fargo, chase, bofa, HSBC, citi. Usually its .125 off per 250k up to .50 for 1 million. Assets dont have to be cash, can roll over brokerage accounts, IRAs etc. 2.875 on a jumbo 30 year is what I’ve been seeing for 3 months.
If you’re a chase private client, no one will be able to beat their rates.
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I’m familiar with the concept.
We have a Portfolio relationship with Wells Fargo and a Platinum Preferred relationship with Bank of America.
I’ve only seen rate discounts on home equity products and car loans.
Neither institution publishes discounts on first mortgage rates as far as I can see. That’s why I asked for a link.
Right, I dont think they publish it so you’re asking for something that cant be produced. I have a name of a mortgage broker at wells Fargo who gave me the info. They will match any rate and give you the discount.
https://online.citi.com/US/JRS/portal/template.do?ID=relationship_pricing_landing
Wells Fargo does the relationship discount on mortgage, but only on jumbo loans.
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They’ll let you use the money you bring over for the down payment too. One extra advantage of using wells but they wouldn’t match Bank of America on the lender credit
thank you for the great input. we are a platinum honors preferred client at BOFA and have our current mortgage with Chase, and one from 2009 with Wells Fargo. I am going to ask all 3 of them for relationship discounts.
Hi, yes, BofA.
I can confirm. If you have >0.5M in assets that they consider liquid (regardless of whether it’s with them or not), BofA can offer much better terms and flexibility in guidelines especially if you have special circumstances where you might not otherwise qualify with a traditional lender. I mean, it might be a long shot to qualify with anyone if you have 50 corporations with all of them showing losses and you showing no personal income, but those that are on the fringes might get some needed help under their modified terms/guidelines.
Rate just dropped from 3.5 to 3.375 on my fixed mortgage, which is the lowest ever. Signs point to another rate drop, but I am not sure if I should gamble for it to hit 3.25 or just do it.
coss1600 who are you doing the mortgage with? bofa?