4S… In the above example, your blended rate is correct.
The closing costs wouldn’t be much higher to get a 1st and 2nd, and this would probably be the best way to go today.
(1st at $417K & 2nd at $143K)
The key is what you can qualify for. For strong borrowers, 30 YR Fixed Fully Amortized are 6% or below today, with the option to buy down even lower.
A 2nd is available closer to 8%, (also worth considering buying down)
This would bring the blended fixed rate closer to 6.50% for a fixed. A solid jumbo today will be closer to 7%.
Jumbo rates DO NOT keep climbing, they actually came down last week for strong borrowers. Money is available.
Even with a good credit score and 20% down, there are still underwriting isues that pop up, no differently than 60 days ago.
Please understand that it’s impossible for anyone to quote accurate rates without knowing what you actually qualify for.
Rates that are flippantly quoted is what leads to misunderstandings.
When it comes to “closing costs” The only fee that a broker is in control of is their origination/broker fees and what they do with any rebate that comes from the lender.
ALL other costs, Title & Escrow fees, Lender Underwriting and prorations for interest and impound account (if necessary) don’t change by the mortgage originator, it just depends on which title & escrow you use.
Without knowing if seller is contributing to closing costs or exactly what borrower will be paying for, it’s another very easy way to be misled when asking for a quote.
A “Good Faith Estimate” is nothing more than a compliance issue and does not have to be accurate or disclose every cost/fee. Another misconception.
You should also always have the option to pay a higher rate and monthly payment to offset your closing costs IF YOU CHOOSE. That’s how the “no cost loan” works, but not explained as such.
