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Forever my credit union website had a mortgage calculator. Enter the amount be borrowed, the size of the down payment and other data. The result was their mortgage rates without points and with points. And it gave the monthly payment.
Now you have to speak to a loan officer to find out their rates. This sounds like they have different rates for different account holders. Such as they determine that certain applicants are a risk in some way and may get "higher" rates than a low risk borrower.
Anyone else can't view rates at your financial institution? Thanks.
Now you have to speak to a loan officer to find out their rates. This sounds like they have different rates for different account holders. Such as they determine that certain applicants are a risk in some way and may get "higher" rates than a low risk borrower.
Anyone else can't view rates at your financial institution? Thanks.
This is nothing new….mortgage issuers have always had better rates for people with excellent credit and higher rates for “so so” borrowers. If they publish a rate, I am sure there’s some fine print mentioning that.
No different than 0.9% car loans. If you’ve got bad credit, you aren‘t going to get that rate.
Yes. I think they do it to make it more difficult to shop around. You pretty much have to spend 1/2 hour on the phone with them before you can find out a rate and then you get the hard sell. Frustrating.
When rates are published, they are usually "the best" meaning that is the rate you can get with perfect credit and usually paying more up front to buy down the points. People who don't have good credit usually don't have extra money to buy down the points anyway, so they kind of lose two ways.
Most credit unions I'm aware of don't actually issue home loans, they are just brokers for a larger bank. The larger banks give them a bit of a deal for initiating the loan and the credit union usually passes that onto their members. It may appear initially that the credit union had something more to do with it, but usually within 3 months one gets a letter that Wells Fargo (or whoever) is the note holder now. That's what happened to me.
In your scenario, it could be that the banks that are issuing the loan that the CU brokers don't want their rates advertised for whatever reason. Possibly because fewer and fewer people would actually qualify for the best rate as the economy continues to weaken. At some point it could be considered false advertising even if the rate is actually available for some people.
Forever my credit union website had a mortgage calculator. Enter the amount be borrowed, the size of the down payment and other data. The result was their mortgage rates without points and with points. And it gave the monthly payment.
Now you have to speak to a loan officer to find out their rates. This sounds like they have different rates for different account holders. Such as they determine that certain applicants are a risk in some way and may get "higher" rates than a low risk borrower.
Anyone else can't view rates at your financial institution? Thanks.
Howard555,
I am a mortgage loan officer with a credit union. Rates have become so detailed and specific that we can no longer post for fear of misleading a potential member. Rates are like ordering off a menu, the more you order, the higher your tab (rate). When we posted rates, we were the same rate in all 50 states, pretty much had the same rate for any score over 700, did not differentiate property type and even had the same rate for all down payments. We had to scrap online, it would take too long to build out a consumer pricing engine, but also, who would update it? Both creating a pricing engine and maintaining it would cost big bucks.
Credit unions are nonprofits. Think about that - we do not price to make a profit and what profits we do make, must go back to the members. This is why our pricing is better than most banks and lenders. I do rate surveys all the time to make sure our folks have us in the market. Several credit unions are on that survey list and they all have removed rates.
This is in today's newsletter I am sending out to agents: The #1 question I am being asked is “what is going on” and “where are we headed?” In a nutshell, lending is contracting in a big way. Lenders use to be flush with cash, cash that no longer exists. The GSEs (Fannie, Freddie, Ginnie) have shrunk in size with the Fed no longer purchasing. Originations are way down, so lenders don’t have the income. And when money contracts, fraud goes up and guidelines batten down. I am not trying to be Debbie Downer, but I am saying it appears it will get worse before it gets better. We are already seeing HELOC guidelines tighten. Should scores start to drop or delinquencies start to increase, we will start seeing credit lines (including HELOCs) slashed to their current balances. This in turn will impact borrower scores, forcing their credit utilization to a high percentage of indebtedness.
Not being flush with cash = cost-cutting measures in place. We are seeing this across the industry. Holiday parties are being canceled, some companies are undergoing voluntary furloughs in the form of hours cut. I just heard another (major) lender is asking their loan officers to go out on family leave (which is a way to not pay unemployment, but they will maintain healthcare). So what I am saying, it's going to be a long time before rates are published again.
Pick up the phone and call. Do not be surprised if lenders are not anxious to beat someone else's price. It's been published many times, but the average lender is losing money on each loan they close. But be careful, credit unions (for the most part) have gone to live pricing, as well. If you find a rate you like, don't think about it, lock. Live pricing mean a price (rate) can change without warning. Lock in because we already know rates are going up, again, in October or November (so the Fed says from last meeting).
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I have two credit unions, and both show their interest rates like: as low as 6.99% or starting at 6.89%. The rates vary based on your credit and loan amount so they cannot give an exact amount. Then they do have a calculator feature, you enter your income, and it shows a table with about 30 lines, with the various loans types (ARM, Construction, Fixed, Jumbo, Variable etc.) along with the best rate, term and payment range.
For example:
5/6 ARM SOFR Interest Rate 6.625% Discount Points 0.000% Loan Amount Range $50,000 - $829,841 Monthly Payment Range $320.16 - $5,313.56
I have two credit unions, and both show their interest rates like: as low as 6.99% or starting at 6.89%. The rates vary based on your credit and loan amount so they cannot give an exact amount. Then they do have a calculator feature, you enter your income, and it shows a table with about 30 lines, with the various loans types (ARM, Construction, Fixed, Jumbo, Variable etc.) along with the best rate, term and payment range.
For example:
5/6 ARM SOFR Interest Rate 6.625% Discount Points 0.000% Loan Amount Range $50,000 - $829,841 Monthly Payment Range $320.16 - $5,313.56
I am sure some do - I never said all, just the ones on my survey, and several in my area have jacked up their rates so they don't take in any loans.
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