Not understanding difference in mortgage rates quoted by broker and listed on-line?
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Anonymous
| Looking to buy a house. I consulted with a mortgage broker who quoted me a 5.25% rate for a 30-year, fixed-rate jumbo loan. But when I glance around on-line, the listed rates are in the lower 4% range. Our credit is stellar, we don't have any real debt, HHI is high. Why is there a big difference between what the broker told me and what I'm seeing on-line? |
Anonymous
| Are you sure those rates were for a jumbo? If all the terms were the same, you should ask the broker. |
Anonymous
| Yes, the rates were for a jumbo (the broker is the one who explained to me what a jumbo loan is). In talking to me about the rates, when I asked her about differences in lenders, she said "they're all the same and they all offer the same rates, more or less. The differences are mainly in customer service and how responsive the lenders are." That didn't sound right to me somehow that all the rates are the same, and I'm not understanding why the rates she quoted me are higher than what I've eyeballed on-line. ?! |
Anonymous
| Look at Amerisave online - I've refied with them twice and the rates quoted are what are offered (assuming you lock in before they change . . .). The broker is probably adding 1/4 point for his fees (assuming you're putting at least 20% down). |
Anonymous
| Sometimes the listed rock-bottom rates are for FHA or other loans that have points or other fees. |
Anonymous
| Your broker is quoting you a higher rate than what I have been hearing so you may want shop around a bit. |
Anonymous
+1 Amerisave has the lowest rates, but know that they are an online, high volume lender, so as long as your situation is pretty straightforward (wage income that is sufficient, decent LTV etc.) and you don't need a lot of handholding, they are a great option. Something you might see very small differences in the rate on their website vs what your are offered if you don't have perfect credit, but even so they will still be better than pretty much anyone else. |
Anonymous
| Junk fees. |
Anonymous
| I just checked my local bank: 5.25%, no points. They're usually 1/4 point or more above the cheapest rates out there. You're not getting ripped off, but it's not a great deal either, assuming the 5.25% is with no points. |
Anonymous
I meant 1/4% or more. |
Anonymous
|
Jumbo is lower than conventional if you put 20% down. va loan is also low up to 1.1 million
http://money.cnn.com/2013/11/12/real_estate/jumbo-mortgages/ wells Fargo is the lowest at 4.125% |