Mortgage questions

[OrangeChipper]

Just locked in a 90 day rate of 5.875.

Is that a good rate??

My question.... is it ethical to PLAY the market???

In other words.... when I'm 45 days out..... could I lock with another company at a lower rate???

Also, where does everyone see the market going??

 

[Bookman]

I'm really curious why you'd question if it were ethical to refinance a loan.

That's like asking if it's ethical to buy from Farmer Bob over Farmer Joe when Farmer Bob's cantaloupes are cheaper.

 

[WooHorn]

If they didn't charge you to lock, you should switch. They know that the lock is only downside for them.

30 yr. fixed, conventional?

 

[OrangeChipper]

Yes we're building right now... maybe 80-100 days out.

30 year conventional at 5.875. Cost us nothing to lock.... but we can't float down.

what I'm wanting to do is get a 60 day lock with about 45 days remaining on the current lock with another company. This way I'm protected if rates go up and we close after the 90 days.

My question is ... Can that backfire on me? Would I ruin the relationship with the first lender?? Or is all fair in love and mortgages?

 

[forgotmyusername]

All this stuff is negotiable.

If you find a better deal, go to your first lender and see if they will match it. If not, go elsewhere.

 

[horn4life]

Definitely secure or have the ability to secure a 60 day lock later. Then immediately get your present lender to honor that rate OR better, it if you prefer dealing with them.

And hope the fed doesn't bump another 1/4 point in September...

 

[OrangeChipper]

Thanks much for the advice!

So is 5.875 good with the current market??

 

[LazyEngineer]

My only advice is to use somebody you trust. There are a lot of ways for these guys to make money. You don't want to be sitting at closing and suddenly find extra fees and such. A couple of years ago I refinanced and ended up getting PMI added even though I am over 80% LTV. Took me 18 months to get it off and probably cost me $300.

I have a good friend (UT-EX) I go to church with that everbody I know uses. Very trustworthy and will give you an honest quote. If you want his email, PM me. He can hook you up.

 

[Brak]

I just locked at 5.875 as well. I had 6.00 but they called me to tell me they got it lowered. The average loan as posted by Associated Press excluding fees is 5.80 so we're not talking about a big difference.

 

[Bernard]

Are there any discount points or origination fees associated with your loan? They can make a big difference as whether or not you received a good rate.

If a lender locks a rate without a deposit, they know good an well you will walk if the rate goes down. If rates go down, you MUST take the better. At most, your obligation may be to allow the first lender to match you better offer.

Mortgage brokers/lenders are in business to make money, but there's no reason you should pay more to one than you would to another for the same product.

Bernard