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Just my luck. I've spend the past year trying to find the right home to buy for the first time.
I've finally found the right place and just found out we have an accepted offer.
So right away I start checking out mortage rates and they are just getting higher and higher!!! They have to be the highest they've been in the past 3 years.
Anyone have any insight on what's going on? If I held out a couple of weeks before I apply and lock in a rate, is that too risky or should I just bite the bullet and lock in now? I'm praying it will drop a little over the next couple weeks.
I don't like to give advice, because I am far from a financial expert/mortgage expert.
That being said, I just got off the phone with a mortgage broker about refinancing/line of credit, and he said for me to go to Yahoo Finance when I balked at the interest rate he was prepared to give me.
I had no idea they went up, and he insisted that they may not come back down again, for some time . . . . could he be scaring me into getting the loan? Possibly, because he wants to make money, but then I went to Yahoo Finance and it seems he may be giving me an honest picture. Not sure what you should do, but I decided to wait a little bit before locking in with anyone, but I have made MANY poor financial decisions before.
Rates have definitely gone up the last couple of weeks or so. If you are a gambler then I would wait a little bit to see what happens. If it was me, I would wait it out. If your working with someone that is reputable then they should be able to lock you in around the right time. Good luck.
jb124, I am a mortgage broker. It's incorrect to say "we are just salespeople and want our commission" because that loan officer at the credit union or bank is getting a commission as well. Working wih a broker is like going into an ice cream store. Why go to a store that only sells vanilla (Bank/Cr. un.) when you can go somewhere that has 31 flavors? (Broker) A good broker has personal relationships with SEVERAL lenders that offer MANY programs which is to the customer's advantage. Its not in the best interest to screw the client because who refers people to somebody who messes them over?
Maybe. That broker may well chargepoints and closing costs that it would take a coupel of years or longer to recover if the difference is only .5-1%. Always look at your Good Faithe Estimate which they are required to gove within three days of an application. Get comparisons just like you would with a building contractor. You should still be able to get 6.5 provided you have kept your credit in good standing. This is still not a bad rate, the market has gotten us spoiled over the past few years. My first house 30 years ago the going rate was 8.5%. It is not about the rate. It is about the excessive inflation. Unless you have found that perfect home...wait. Prices are still going down and we have not seen the bottom yet. Depending on your area this may not be true. The normal run up since WW11 has been 7-9% per year depending on area. In Florida in most areas we have seen 60% in three years. When sellers understand the correction is about 30% off the high then that is the time to reenter the market. We have 10-15% left to go and falling fast. Check back in the market in November, the traditional low point of the market. Be patient during that time forward for 1 year. You will save enough that you won't have to worry about .5% interest rise. Attrition will correct the money. There is still fools money being passed around but it won't change the end result.
I'd use a bank if I were you, preferably a credit union. Brokers are just sales people and want their commission like anyone else in sales.
In my most recent purchase I spent a lot of time finding the best way to get a mortgage. I went to my credit union, bank, two mortgage companies, and talked with four mortgage brokers. The mortgage deal that was the best overall was from a good broker.
Don't make assumptions on the best route until you have done the research in today’s market.
What do you expect? We are just emerging from a period where interest rates were at a 40 year low!!!!!!!! Interst rates are only going higher and higher and higher!!!!!!! No wonder housing saw such run up in prices!
I'd use a bank if I were you, preferably a credit union. Brokers are just sales people and want their commission like anyone else in sales.
I would agree with you to use a credit union for best deals on almost all loans and accounts. The exception is 1st mortgages, where a top notch correspondent lender (broker) will probably have the best process, 1st time homebuyer programs and competitive if not best terms.
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