Amusing advice from “experts” above.
When comparing 15/30YR rate/costs there is no such thing as one rate that applies to every borrower.
The factors for loan pricing on a purchase are credit score and % down payment and lock period.
The factors for a refi are the 3 above AND whether only an existing 1st mortgage is being refi’d OR a 2nd, HELOC or cash is being taken out.
It’s not the rate that changes every day, it’s the cost to get the rate that does, and there are often intraday changes. Until you are locked, and then fully underwritten and approved, the rate means nothing.
Quoting yesterday’s mortgage quote today is as silly as talking about yesterday’s stock price on a stock that went up today. Yesterday’s price is no longer available.
Different lenders have different guidelines to qualify for the exact same loan. Just because you lock in at the lowest rate, doesn’t mean that you will get approved. You may get approved at one lender but not at another. Normally on a purchase, escrow will not work with multiple lenders, you need to pick one and pray.
An ignorant real estate agent may direct to the wrong lender/broker.
800 credit score with $200K income may not qualify to get a $300K loan.
One way or another there are costs with every loan. If you don’t want to pay costs, you will just get a higher rate and higher monthly payment that will end up costing more after 3 to 5 years, and a small fortune if the loan is kept 15-20-30 years. You may screw yourself with a no cost/low cost loan.
The right rate today for a well qualified borrow for the OP was 4.875% with .50pt cost OR 5% 0pts
For a loan below $417K 4.75% with a .25pt cost OR
4.875% with 0pts. It’s going to be different in the morning.
All you experts probably don’t know that a bank/direct lender can screw you without you ever knowing but once a mortgage broker discloses their charge to you, he cannot receive a penny more than what was disclosed.
If there is a benefit from a lower rate, it is credited to the borrower. There is no advantage to a broker after disclosing their fee. The new rules are specific.
Although well intentioned, info from some above posts is just plain ignorant.
