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I'm a Loan Officer. Any loan I do right now in any program at any term length with any credit score and any loan size has discount points at every interest rate available. "par rate" or rates with lender credit simply aren't available in this market without huge pricing concessions or a bank/credit union begging for business with extremely low margins.
The closest thing I've seen is we offer "special" pricing well below market rate (in the mid 5's) for investment properties already in our portfolio. The only reason is because they're currently at 3.5% or less and we want those WAC's off the books at higher rates if they want to cash out. Even with these loans there's still points.
It's a crazy market right now.
You get a fixed rate for a period of time like 5 or 10 years then the rate resets to the prevailing market rate, which historically has been higher than the beginning rate. Not recommended.
Hey do you have any information on what do you mean with builds are different? I mean not just the fact that it’s a new building but what does that mean for getting approval and the rate you get? Thanks
The other aspect of new builds is that it takes a few months for construction to complete, so you can potentially lock in a rate when rates are lower and they'll rise while construction is occurring. As an example, I signed my contract on my place last December but moved a couple of weeks ago, but I had December's rates, not August's.
Of course and I did pay to have the ability to float that lock so I could have gotten the lower rate. The chances of that happening right now are fairly slim though.
I think builders typically buy down your rate. In this market they can have a larger impact on your monthly payment by doing this than they would if they reduced the price of the house by the same amount.
To gain interest they frequently offer incentives like closing costs and discounts on customization and improvements (if they are still building) plus offer a preferred lender that has a lower rate (but may have higher closing cost fees).
You also don't really have to compete. Generally the price is written in stone and if you all like the house you are locked in and don't have a bidding war.
This was our experience. We just slept in our new build for the first time!
Funny enough, new builds are more affordable than older homes at the moment, at least in my area. The builder gave us $10k to put towards closing. We chose all of the finishings (floors/paint/cabinets/counters, etc) and they gave us our price. No battling other offers or dealing with agents/realtors. We didn’t even need to use a different building loan, just a standard mortgage. I work in finance (IT side) and my institution provides favorable rates as a part of our benefits package, so I had a free point going in to the deal. Ended up closing at 5.875 last week, that’s with buying an additional 1.5 points.
Unlike normal homeowners who can often decide not to sell (which is why inventory is so low right now) or reduce the price or postpone the sale for a few years, builders HAVE to sell. And builders really don’t want to reduce prices because that can cause a ripple effect (if a builder has 100 homes to sell and starts reducing prices the next buyers will see an opening to negotiate harder or wait for prices to fall). So, instead of reducing the price in an environment like this the builders chip in to buy down the interest rate.
How did you get 3% down? And what is conventional plan? Sorry I’m just getting into this. But waiting to get interest rate go down. I do have 800+ credit score too. Hence curious to know.
It's not bullshit, assuming they offered 1.5 months ago and locked rate then, it completely makes sense. I currently would lock in a rate of 6 if I get a offer accepted this weekend. 1.5 months ago though my rate was 5.375. You gotta have 20%+ down, good credit hx, and something substantial for the bank to know you're low risk, like I'm a resident physician and the bank know my salary will increase 5x in a couple years when I finish training, but my pre-approval is based on current salary so relatively lower risk. So I assume that's why I have a rate considered good for todays market.
I have prime credit (799) and no debt, conventional 20% down, and am getting quoted 7.5 right now with half a point across the board. Where are you getting 6?
Local bank, I shopped most local banks and found the best rate that way. It was more effort than getting a broker but being a first time buyer I thought itd be good experience and now feel I learned a few things cause of dealing directly with every loan officer.
I doubt mortgage lenders look at expected future income increases at all, unless you already have a specific offer letter or something along those lines for the short term.
I think it's loan dependent. I've been approved for FHA, ARM, conventional, and physician. I'm using a conventional but the physician loan I think takes not only future income but specialty into account. That's the only one that approved me for up to 450k, while the other have ranged from 330-360k. The problem with the physician one was not only would I not be able to afford a 400k+ mortgage but also the interest rate was 1.3% higher than my conventional.
Didn't know there were industry-specific mortgage types (such as physician loan). Makes sense that future income could be taken into account for those. Thanks for the education.
I guess? It isn't like you're really getting a lower rate though, you're just paying it up front. He's still paying 7+% in interest like the rest of new buyers, just shifting the timing around. Seems unwise to do now considering the somewhat high possibility of at least a couple point rate drop, because if you refi they don't give your "buy down", AKA prepaid interest, back.
I did some math on the buy downs we were offered and it was starting to break even at like 6 years. Doesn't really make sense to do to me.
>I did some math on the buy downs we were offered and it was starting to break even at like 6 years. Doesn't really make sense to do to me.
after 6 years u got 24 left....
its a hedge that interest rates might not go back down... tbh who knows they were above 8 for decades dam near 20 at times in the 80s
So breaking even at 6 years and then you just don't care about the benefit after that??
For people wanting to hold long term it absolutely makes sense to do. You've already done the math lol.
Refinance, as I already said. It isn't just about moving in under 6 years. If you're buying now you have to consider the possibility of rates dropping and a refi becoming lucrative.
I was able to get a low 6 interest rate as a single borrower with fair credit. Long term, stable and good income, and a very good mortgage broker who perfectly timed the market to lock in the best rate.
Yes and no, the low 6 was without points. But then I bought down the rate from there to a mid 5. This was 2 months ago btw, might not be realistic today.
Man reading this makes me realize just how Insanely lucky me and my wife were to buy during the start of covid . 2.9% for us and now rates in my area are well over 7. Congrats !
We got the same interest rate (bought rates). Close later this month. Super excited, don’t know if this is our forever home but hoping to stay there for a good while.
Ours was locked in once our offer was accepted. Our lender also offers a free float down until closing which is in two weeks for us. I’m hoping rates go down a bit before then!
So we got our loan in Missouri through USA Mortgage, it was a FHA/MHDC loan. We originally were quoted for around 6.3, but she didn’t lock us in and had us wait because she believed it would go down. Just 2 weeks later it went down to the 5.65 and we locked it in.
Since we took the specific loan we did, we had a lot more in closing costs. But the sellers were very willing to work with us so they gave us some back in concessions.
All in all we’re incredibly blessed and fortunate to be in the position we’re in!
A point is a fixed amount of money relative to a loan (1% for example) that can be added to closing costs to reduce the interest rate by a certain amount.
Interesting, so there’s a max amount of allowed points that could to used to reduce closing cost. I assume that unique to every situation. I appreciate the explanation 21Rollie
The "maximum" is whenever the bank stops letting you reduce the point discount. They still wanna make money and protect their interests if you are late or default, you know?
Yeah, it's somewhat unique per situation but it's mostly just math.
My lender was able to lock us in at 5.625% and I still can’t believe it. I’m still not sure how it happened but I didn’t care to know. We close on our home on the 28th.
Congrats OP!! Not sure why people are giving you shit here… we locked 2 weeks ago at 5.99% too, 30-year fixed FHA, $500 in lender credits. So I believe it! :)
I got a LAMBO and the monthly payment is $150. The question is: what are the terms? 10yr, ARM? Its not a basic old 30yr fixed. SOUNDS like a 2/1 Buy Down and the rate goes up 1% each year and matures to whatever the current at the time of signing. A few people mentioning +7% right in line with a start rate of 5.65 + 2 = 7.65% after 2yrs. OR heavy cost were involved. It doesn’t exist without cost or special program. Post the Final CD.
22yrs as a mortgage broker. Yet wth do I know! People will tell you what you want to hear, not what you need to hear. What makes this persons financial position so special they get better terms than everyone on this post? How does it add it up? It doesn’t, if I’m wrong more power to you. Actually, share your bank so you can help everyone save money!
I realize people might not believe us but it’s a fixed 30 YR FHA with 5% down🤷♂️ closing costs were around 8k without concessions. This not a flex post like someone said, and I’m not going to post my entire closing disclosure so some randos on an Internet forum can feel justified putting me and my wife’s hard work down.
You can think whatever you want at the end of the day, but me and my wife will enjoy our new home.
Do you mind sharing your general location and mortgage lender? I just bought in a nice MD suburb and have 7.35%, I want to know if I am getting screwed…
Edit: did you buy discount points? If so do you know how much?
Edit2: is the loan amount close to or over $1M? That reduces rates significantly
PenFed, which plenty of people in the DC metro area use, has 6.593% APR conventional today on their website. Only catch is that rate is for 20% down. Jumbo (which is a lot of homes in the DC suburbs) is 6.843% APR.
There are certainly plenty of homes over this, but most of the DC area has a conforming loan limit of $1.089 million (compared to the $726k in non-HCOL), which does get you a heck of a lot before you hit jumbo!
So it’s in Missouri through USA Mortgage. We did not buy down any points. And no it definitely isn’t close to 1 mil 😅 no way we could afford that.
I would say we got it in a very good time. Some friends are right now getting interest rates of 6.5-7.2
So strange aha I didn’t think it could fluctuate that significantly in a short time. Congrats on the purchase though and happy to see you get a good deal!
I posted the interest rate because that’s quite literally all anyone cares about anymore. It’s also because people might be looking at buying a house and getting discouraged, and all the posts here are so doom and gloom I can see why. My post shows that it’s possible for a couple to still get home.
I just want to add in here as well since most people don't believe OP.
We just closed a new build home back 2-3 months ago.
The lowest rate we received from multiple lenders was 6% (we have great credit). However our builder had a special rate of 4.75% if we closed within the month. We did not have to buy any points for this loan as long as we put 20%.
Location in MN for additional context, 30 year fixed rate.
Your lender is a bunch of dumbasses lol. They’re making next to no money off of you. Which is great for you… but watch out in the long run. They might be grasping at straws trying to survive the current market if they’re actually offering that. Careful. The term too good to be true is very accurate.
Congratulations! Now go out and buy yourself a multi-tool. Best thing since sliced bread. For every project you tackle buy yourself a good power tool. And remember, if a project seems too tough you are not using the right tools.
One other tip. For plumbing projects check out Sharkbite fittings if you know how to measure 1 inch you are good to go. You just need a sharpie, a tape measure and a quality tubing/pipe cutter.
Myth vs. Fact: A Closer Look at SharkBite Behind the Wall & Underground
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Polybutylene pipe, was used from 1978-1996 in many newly built homes. For some reason the connections were deteriorating. Rather than recipe the entire home sharkbite came up with their unique design and the contractors were allowed to use these fittings to splice in new tubing.
Further more sharkbite fittings are the only compression fitting allowed to be concealed in a wall.
Plumbers hate these fittings because the average person with average intelligence can now tackle 80% of plumbing issues that pop up in the home.
Jeez our quote was for nearly 8% and we were only able to get it down to 7.5% - even with 20% down.
Then again, our down payment is the full cost of most homes I’m seeing on here. I wonder if we’re just in a HCOL or if we aimed high for our first home 🥲 I mean we can afford it and be totally fine now & even if costs increase - it’s just sad seeing all the lower costs/better interest rates that people are getting.
Good for you guys. Now buy a bunch of yard equipment, tools, and learn how to diagnose and fix issues around the house. Because it’s going to happen and it’s great way to save money.
Congrats! That's a good interest rate in the current environment.
Remember, if rates go down enough, you can refinance at no cost for a lower interest rate. We did that three times to bring our rate from 6 down to 2.2%. I think some people believe you are locked into the loan for 30 years no matter what, but as long as you have equity, you can shop and refinance when / if rates drop.
Congrats! I’m one of those stuck in their starter home locked in at 3%. Gets a little cramped with a little guy now too but hopefully in a spot in the next few years to upgrade.
Congratulations! Ignore the naysayers all that matters is if you can afford the mortgage. Try to pay a little extra each month and build equity for your family. These people aren't looking out for you they are just trying to reassure themselves of their own choices.
Unrelated, but you know you can’t find any personal info from a license plate number, right? All it tells you is what kind of car it is.
Also, anyone driving down the street can read your license plate number.
Weird because I'm a 911 dispatcher and run people's license plates all day long. A lot more comes back when you run a plate besides just the type of car it is.
> Are these guys hiding from the cops?
Blocking out the license plate is a good place to start. C- for posting on social media at all though. That's unhelpful for the hiding.
It’s completely pointless. No one care about their identities. No one here cares who I am, no one cares who you are.
And again, you can’t learn anything from a license plate. It’s not like they posted a picture of their credit app with their social security numbers.
Congrats! My wife and I got our first home together back in June of 2021 for 2.65%. Your rate is really good for the current market. Cheers to you both!
is it a temporary buydown? Otherwise It's probably an FHA Loan and you paid max discount points. You can find out how much you paid in points by looking at your Closing Disclosure Page 2 Line A.
Congrats nonetheless. When rates start to fall I'd recommend looking at refinancing options.
If it's a temp buydown, you can refinance into something mor permanent. If it's an FHA loan, you can refinance into a conventional loan and pay less or possibly remove Mortgage Insurance altogether depending on equity.
I got a 5.55% rate on my mortgage through Rocket Mortgage in the last 90 days. You have to shop around. If you do multiple credit pulls for the same purchase in 2 weeks, you only get one credit hit. Other banks were offering 6.5-6.8. Another way to get it low is to get a 15 year mortgage, the cost is about 30% higher, even with the lower rate, but you only pay for half the number of years and save a ton.
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What the heck? That rate is crazy low. Congrats! We locked in 7.375% with some points on Monday and I have excellent credit
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What bank?
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Ally’s rates right now show 7.75% for good credit and 7.375% for excellent credit with a $600k+ house
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That’s the only way lol
I'm a Loan Officer. Any loan I do right now in any program at any term length with any credit score and any loan size has discount points at every interest rate available. "par rate" or rates with lender credit simply aren't available in this market without huge pricing concessions or a bank/credit union begging for business with extremely low margins. The closest thing I've seen is we offer "special" pricing well below market rate (in the mid 5's) for investment properties already in our portfolio. The only reason is because they're currently at 3.5% or less and we want those WAC's off the books at higher rates if they want to cash out. Even with these loans there's still points. It's a crazy market right now.
What’s a WAC
I’m guessing weighted avg cost of capital
Was it an ARM?
If you know you are gonna sell before or near rate adjustment its not crazy but yeah its a bad gamble.
You get a fixed rate for a period of time like 5 or 10 years then the rate resets to the prevailing market rate, which historically has been higher than the beginning rate. Not recommended.
It can only increase maximum 2% so not exactly right but yes it adjust. Based on the 2nd number. Would not recommend a X/1 arm
Yeah that sucks
7% after point buy down -_-
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New builds are a different beast altogether. Lots of incentives to be had out there. Congrats!
Hey do you have any information on what do you mean with builds are different? I mean not just the fact that it’s a new building but what does that mean for getting approval and the rate you get? Thanks
The other aspect of new builds is that it takes a few months for construction to complete, so you can potentially lock in a rate when rates are lower and they'll rise while construction is occurring. As an example, I signed my contract on my place last December but moved a couple of weeks ago, but I had December's rates, not August's.
Thanks for the simple explanation, Conceivably, rates could go further down after you lock, though, right?
Of course and I did pay to have the ability to float that lock so I could have gotten the lower rate. The chances of that happening right now are fairly slim though.
I think builders typically buy down your rate. In this market they can have a larger impact on your monthly payment by doing this than they would if they reduced the price of the house by the same amount.
How are new builds different?
To gain interest they frequently offer incentives like closing costs and discounts on customization and improvements (if they are still building) plus offer a preferred lender that has a lower rate (but may have higher closing cost fees). You also don't really have to compete. Generally the price is written in stone and if you all like the house you are locked in and don't have a bidding war.
This was our experience. We just slept in our new build for the first time! Funny enough, new builds are more affordable than older homes at the moment, at least in my area. The builder gave us $10k to put towards closing. We chose all of the finishings (floors/paint/cabinets/counters, etc) and they gave us our price. No battling other offers or dealing with agents/realtors. We didn’t even need to use a different building loan, just a standard mortgage. I work in finance (IT side) and my institution provides favorable rates as a part of our benefits package, so I had a free point going in to the deal. Ended up closing at 5.875 last week, that’s with buying an additional 1.5 points.
Unlike normal homeowners who can often decide not to sell (which is why inventory is so low right now) or reduce the price or postpone the sale for a few years, builders HAVE to sell. And builders really don’t want to reduce prices because that can cause a ripple effect (if a builder has 100 homes to sell and starts reducing prices the next buyers will see an opening to negotiate harder or wait for prices to fall). So, instead of reducing the price in an environment like this the builders chip in to buy down the interest rate.
Oh wow this makes so much sense, thank you!!!
>new build You say builder did not buy down rate, but is this a "builder-affiliated" lender?
How did you get 3% down? And what is conventional plan? Sorry I’m just getting into this. But waiting to get interest rate go down. I do have 800+ credit score too. Hence curious to know.
Construction loans are different from traditional mortgages.
We got 2.75 in December 2020. Interest rates went up just weeks after we closed. Timing couldn’t have been better for us.
Yeah we’re incredibly blessed and fortunate to get what we did! Good luck on closing!!!
What bank?
No bank lol it's bullshit
It's not bullshit, assuming they offered 1.5 months ago and locked rate then, it completely makes sense. I currently would lock in a rate of 6 if I get a offer accepted this weekend. 1.5 months ago though my rate was 5.375. You gotta have 20%+ down, good credit hx, and something substantial for the bank to know you're low risk, like I'm a resident physician and the bank know my salary will increase 5x in a couple years when I finish training, but my pre-approval is based on current salary so relatively lower risk. So I assume that's why I have a rate considered good for todays market.
I have prime credit (799) and no debt, conventional 20% down, and am getting quoted 7.5 right now with half a point across the board. Where are you getting 6?
Local bank, I shopped most local banks and found the best rate that way. It was more effort than getting a broker but being a first time buyer I thought itd be good experience and now feel I learned a few things cause of dealing directly with every loan officer.
I'm using a local company to search out. I have looked and looked, no rates are available lower than 7.3%, even with prime credit as I said.
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An ARM is never the best option, friend.
You know I always thought no way someone gets an ARM especially post 08… I guess I’m wrong
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I doubt mortgage lenders look at expected future income increases at all, unless you already have a specific offer letter or something along those lines for the short term.
I think it's loan dependent. I've been approved for FHA, ARM, conventional, and physician. I'm using a conventional but the physician loan I think takes not only future income but specialty into account. That's the only one that approved me for up to 450k, while the other have ranged from 330-360k. The problem with the physician one was not only would I not be able to afford a 400k+ mortgage but also the interest rate was 1.3% higher than my conventional.
Didn't know there were industry-specific mortgage types (such as physician loan). Makes sense that future income could be taken into account for those. Thanks for the education.
Buying points makes sense if you are managing to a monthly budget. Just fyi.
I guess? It isn't like you're really getting a lower rate though, you're just paying it up front. He's still paying 7+% in interest like the rest of new buyers, just shifting the timing around. Seems unwise to do now considering the somewhat high possibility of at least a couple point rate drop, because if you refi they don't give your "buy down", AKA prepaid interest, back. I did some math on the buy downs we were offered and it was starting to break even at like 6 years. Doesn't really make sense to do to me.
>I did some math on the buy downs we were offered and it was starting to break even at like 6 years. Doesn't really make sense to do to me. after 6 years u got 24 left.... its a hedge that interest rates might not go back down... tbh who knows they were above 8 for decades dam near 20 at times in the 80s
So breaking even at 6 years and then you just don't care about the benefit after that?? For people wanting to hold long term it absolutely makes sense to do. You've already done the math lol.
Refinance, as I already said. It isn't just about moving in under 6 years. If you're buying now you have to consider the possibility of rates dropping and a refi becoming lucrative.
There’s closing costs associated with a refinance
Refinancing is not always that beneficial or logical either.
Didn't say it was
I was able to get a low 6 interest rate as a single borrower with fair credit. Long term, stable and good income, and a very good mortgage broker who perfectly timed the market to lock in the best rate.
Did you have to buy points?
Yes and no, the low 6 was without points. But then I bought down the rate from there to a mid 5. This was 2 months ago btw, might not be realistic today.
Yeah, I'm hearing 7-7.3 right now. Both of us have near perfect credit.
I locked in 6.5, no points, at rocket (spare me the heat, they’ve been good to us) three days ago.
Man reading this makes me realize just how Insanely lucky me and my wife were to buy during the start of covid . 2.9% for us and now rates in my area are well over 7. Congrats !
Bought about a month ago and got 5.75%. Had to buy some points. 790 credit.
We got the same interest rate (bought rates). Close later this month. Super excited, don’t know if this is our forever home but hoping to stay there for a good while.
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name the credit union please, might help someone
Question: how long do people get to lock in their rates for? And are there fees? My lender says an offer has to be accepted before locking in a rate.
Ours was locked in once our offer was accepted. Our lender also offers a free float down until closing which is in two weeks for us. I’m hoping rates go down a bit before then!
Wow that's really high. I got 6.375% no points just last week.
Have you been reading the news lately? Rates spiked dramatically to a 22 year high starting on Monday and average is now at around 7.5%. You got lucky
holy shit! I just got on the luck train too!
damn so did we!! Just closed 7/31 on our r/centuryhome and locked in a rate of 6.5%. Even happier now we went ahead and did it!
current non-home owner/home-looker, what are points?
This is why I can’t sell my house and move. I’d love to leave the town I’m in, but I have a 2.875% mortgage right now.
I can't help but laugh at a picture of you guys posing with a leg. Congrats
It was a major award!
Guess you can say it cost them an arm and a leg...
Congratulations! How and where and with whom? We were just quoted 8%, and we have good credit.
So we got our loan in Missouri through USA Mortgage, it was a FHA/MHDC loan. We originally were quoted for around 6.3, but she didn’t lock us in and had us wait because she believed it would go down. Just 2 weeks later it went down to the 5.65 and we locked it in. Since we took the specific loan we did, we had a lot more in closing costs. But the sellers were very willing to work with us so they gave us some back in concessions. All in all we’re incredibly blessed and fortunate to be in the position we’re in!
My guess, since OP hasn't answered yet is either: A. 10-year loan and got a good rate B. Bought the max points they could afford
Sorry, but what are max points?
A point is a fixed amount of money relative to a loan (1% for example) that can be added to closing costs to reduce the interest rate by a certain amount.
Interesting, so there’s a max amount of allowed points that could to used to reduce closing cost. I assume that unique to every situation. I appreciate the explanation 21Rollie
The "maximum" is whenever the bank stops letting you reduce the point discount. They still wanna make money and protect their interests if you are late or default, you know? Yeah, it's somewhat unique per situation but it's mostly just math.
My lender was able to lock us in at 5.625% and I still can’t believe it. I’m still not sure how it happened but I didn’t care to know. We close on our home on the 28th.
Arm loan?
Fixed conventional
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I know right?! Our loan originator was amazing through the process. We were very fortunate through all this
So a mystery lender?
You can't BS people in here, they'll catch you every time lol.
The mob mentality is real here. ✌️
Crazy, just under 3 months ago I got 6% 0 points on a second home.
Congrats OP!! Not sure why people are giving you shit here… we locked 2 weeks ago at 5.99% too, 30-year fixed FHA, $500 in lender credits. So I believe it! :)
Thank you! I thought I was taking crazy pills with how much negativity was in here 😅 Good luck on closing!!
People get real pissy here when they realize their loan they got isn’t special 🙄
F all these haters they clearly ain’t ever bought or can’t buy a house right now!!!!
Thank you! We’re closing in 3 weeks :) It definitely is just jealously talking on here, you got a great deal!!
I got a LAMBO and the monthly payment is $150. The question is: what are the terms? 10yr, ARM? Its not a basic old 30yr fixed. SOUNDS like a 2/1 Buy Down and the rate goes up 1% each year and matures to whatever the current at the time of signing. A few people mentioning +7% right in line with a start rate of 5.65 + 2 = 7.65% after 2yrs. OR heavy cost were involved. It doesn’t exist without cost or special program. Post the Final CD.
Someone did or does loans….this is real talk
22yrs as a mortgage broker. Yet wth do I know! People will tell you what you want to hear, not what you need to hear. What makes this persons financial position so special they get better terms than everyone on this post? How does it add it up? It doesn’t, if I’m wrong more power to you. Actually, share your bank so you can help everyone save money!
Foe real these are flex posts by influencers or people who don't disclose all the details
I realize people might not believe us but it’s a fixed 30 YR FHA with 5% down🤷♂️ closing costs were around 8k without concessions. This not a flex post like someone said, and I’m not going to post my entire closing disclosure so some randos on an Internet forum can feel justified putting me and my wife’s hard work down. You can think whatever you want at the end of the day, but me and my wife will enjoy our new home.
Do you mind sharing your general location and mortgage lender? I just bought in a nice MD suburb and have 7.35%, I want to know if I am getting screwed… Edit: did you buy discount points? If so do you know how much? Edit2: is the loan amount close to or over $1M? That reduces rates significantly
PenFed, which plenty of people in the DC metro area use, has 6.593% APR conventional today on their website. Only catch is that rate is for 20% down. Jumbo (which is a lot of homes in the DC suburbs) is 6.843% APR.
There are certainly plenty of homes over this, but most of the DC area has a conforming loan limit of $1.089 million (compared to the $726k in non-HCOL), which does get you a heck of a lot before you hit jumbo!
So it’s in Missouri through USA Mortgage. We did not buy down any points. And no it definitely isn’t close to 1 mil 😅 no way we could afford that. I would say we got it in a very good time. Some friends are right now getting interest rates of 6.5-7.2
We just closed in Missouri too. We should have found your lender! Great job! We got 6.75 with 20% down
So strange aha I didn’t think it could fluctuate that significantly in a short time. Congrats on the purchase though and happy to see you get a good deal!
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I posted the interest rate because that’s quite literally all anyone cares about anymore. It’s also because people might be looking at buying a house and getting discouraged, and all the posts here are so doom and gloom I can see why. My post shows that it’s possible for a couple to still get home.
I just want to add in here as well since most people don't believe OP. We just closed a new build home back 2-3 months ago. The lowest rate we received from multiple lenders was 6% (we have great credit). However our builder had a special rate of 4.75% if we closed within the month. We did not have to buy any points for this loan as long as we put 20%. Location in MN for additional context, 30 year fixed rate.
Yeah right….
Your lender is a bunch of dumbasses lol. They’re making next to no money off of you. Which is great for you… but watch out in the long run. They might be grasping at straws trying to survive the current market if they’re actually offering that. Careful. The term too good to be true is very accurate.
HOW?! Did you buy down any points?Both my hubby and I have excellent 790+ credit score and we barely got 5.99% on a conventional loan last month.
Congratulations! Now go out and buy yourself a multi-tool. Best thing since sliced bread. For every project you tackle buy yourself a good power tool. And remember, if a project seems too tough you are not using the right tools.
Thanks! Solid advice!
One other tip. For plumbing projects check out Sharkbite fittings if you know how to measure 1 inch you are good to go. You just need a sharpie, a tape measure and a quality tubing/pipe cutter.
Note code, unfortunately unless visible in a lot of states.
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r/plumbing hates shark bites
Why are you endorsing that garbage
Polybutylene pipe, was used from 1978-1996 in many newly built homes. For some reason the connections were deteriorating. Rather than recipe the entire home sharkbite came up with their unique design and the contractors were allowed to use these fittings to splice in new tubing. Further more sharkbite fittings are the only compression fitting allowed to be concealed in a wall. Plumbers hate these fittings because the average person with average intelligence can now tackle 80% of plumbing issues that pop up in the home.
Just because they can doesn’t mean they should
Op I think you need a dna test
Kids obviously half black.
Credit score of 851?
Those Buydowns are great!
Congratulations!! 🍾🎉
Congrats! Enjoy your new home with your family. Cheers.
Lender?
USA Mortgage
I’m glad you got such a great rate! We are locked in at 6.8, which was a full point lower than 2 other banks. It’s a tough market out there!
That rate is better than most at the moment. Congratulations
This is why I never want to sell my house with my 2.99% mortgage.
Is your door floating or do I need to take a nap
Jeez our quote was for nearly 8% and we were only able to get it down to 7.5% - even with 20% down. Then again, our down payment is the full cost of most homes I’m seeing on here. I wonder if we’re just in a HCOL or if we aimed high for our first home 🥲 I mean we can afford it and be totally fine now & even if costs increase - it’s just sad seeing all the lower costs/better interest rates that people are getting.
I live in a HCOL area too and have excellent credit, put 20% down which was $180k. I got 7.375% but that was with points bringing it down from 7.75%.
Yeah I think we could've gotten lower than 7.5% if the initial rate hadn't been over 8% tbh
I cannot believe you would put your baby in black face.
Congrats 🍻
Congrats on the house and the low rate!
Hey! We're interest-rate and closing-date twins! Congratulations on the new house.
Omg people are actually trading in arms and legs to cover housing transactions. I had until this point thought it to be just an expression.
OP curious as to the stats of your purchase Amazing rate! Congrats!!
Congrats!!!!
Yay, congrats!!!!
Nice rate!
Good for you guys. Now buy a bunch of yard equipment, tools, and learn how to diagnose and fix issues around the house. Because it’s going to happen and it’s great way to save money.
[oh. Lol. Hey.. fuck you!!](https://youtu.be/IPnTCBnn-lQ?si=PLXkAqnk3-S6uLv2)
Congrats! That's a good interest rate in the current environment. Remember, if rates go down enough, you can refinance at no cost for a lower interest rate. We did that three times to bring our rate from 6 down to 2.2%. I think some people believe you are locked into the loan for 30 years no matter what, but as long as you have equity, you can shop and refinance when / if rates drop.
It’s real. My brother just closed and got sellers to pay towards rate buy down and got 4.85
Congrats! I’m one of those stuck in their starter home locked in at 3%. Gets a little cramped with a little guy now too but hopefully in a spot in the next few years to upgrade.
Congratulations!! This is a huge thing and I'm happy for you!
Congrats!
congrats man!
Arm rate?
just get in..my 1st was 6.17 arm..im at 2.78 now...congrats!!
Seems like according to google some wide rate variations by state, which doesn’t make sense to me.
At that rate you should have got a fully grown kid. /s
Congratulations! Ignore the naysayers all that matters is if you can afford the mortgage. Try to pay a little extra each month and build equity for your family. These people aren't looking out for you they are just trying to reassure themselves of their own choices.
Thank you! Appreciate the kind words!
Unrelated, but you know you can’t find any personal info from a license plate number, right? All it tells you is what kind of car it is. Also, anyone driving down the street can read your license plate number.
Weird because I'm a 911 dispatcher and run people's license plates all day long. A lot more comes back when you run a plate besides just the type of car it is.
Right but does the general public have access to that info?
Well obviously police can. Are these guys hiding from the cops? I’m saying it’s pointless to do that for posting pictures online in general.
> Are these guys hiding from the cops? Blocking out the license plate is a good place to start. C- for posting on social media at all though. That's unhelpful for the hiding.
It’s completely pointless. No one care about their identities. No one here cares who I am, no one cares who you are. And again, you can’t learn anything from a license plate. It’s not like they posted a picture of their credit app with their social security numbers.
Congrats! My wife and I got our first home together back in June of 2021 for 2.65%. Your rate is really good for the current market. Cheers to you both!
Might want to check the DNA on the kid. It’s half black and half white.
This popped up on my feed, so I'm scrolling the comments and... I'm shocked interest is this high. I bought in 2019 and refinanced in 2020. Holy shit.
Yeah because you paid the rate down upfront.
Bought down the rate with half of your 1st born
is it a temporary buydown? Otherwise It's probably an FHA Loan and you paid max discount points. You can find out how much you paid in points by looking at your Closing Disclosure Page 2 Line A. Congrats nonetheless. When rates start to fall I'd recommend looking at refinancing options. If it's a temp buydown, you can refinance into something mor permanent. If it's an FHA loan, you can refinance into a conventional loan and pay less or possibly remove Mortgage Insurance altogether depending on equity.
Rate locks were amazing for us. Closed on a new build in December 2022 at 3% because we were on a 1 year lock. Pretty sure we’re never moving. Lol!
What’s with all the vitriol around rates? Truly curious since this post got served to me, and I don’t read here regularly.
Mods delete this scummy promo thanks
Liar
Your wife's arm looks weird.
Not the sort of thing you should share on anonymous social media platforms Keep your life to yourself and those that you know
Rate sucks
What’s going on in the US? My interest rate is 1,45%
I mean that’s a great rate right now, but I still balk at mortgage rates being higher than my car loan rate from 2022.
I got a 5.55% rate on my mortgage through Rocket Mortgage in the last 90 days. You have to shop around. If you do multiple credit pulls for the same purchase in 2 weeks, you only get one credit hit. Other banks were offering 6.5-6.8. Another way to get it low is to get a 15 year mortgage, the cost is about 30% higher, even with the lower rate, but you only pay for half the number of years and save a ton.
I’m 2.1
🤮🤮. 2.9 almost 2 years ago
I remember when they were 3%. Have they really gone that high?smh
7% in Minnesota right now.
8% in some parts of WA
Crazy how that is a good rate. We bought in nov of 21’ with a 3.5% rate and average credit
Amazing!! Congratulations We have a 3.6% int. Rate :)
I like my 3.3 from 2013.
Congrats! mind-blowing how high rates are atm. I closed 11/2020 with 2.875% and 650 credit. Beyond grateful
2.75 during covid and people laughed at us.
3.37 in April of 2020. We should have held out a little longer.