Ray,
I’m not doubting most of what you stated. I had a client sign loan docs this morning at 5.25% for a loan locked 2½ weeks ago…
Last week had a 5% NO COST 5 YR ARM, and a 5.375% cash out refi.
There is NO reason to charge a point and rebate .70%. That’s nonsense , or it didn’t happen excatly that way.
(Just charge .30)
You said that the 1pt is tax deductible, but forgot to mention that the .70 rebate is income.
I tell people 100% of the truth, 100% of the time, and can only laugh when people tell me what they were quoted a week ago but they didn’t lock, and can’t understand why my PAR rate is higher.
Most people don’t recognize (or understand) the truth, even if it smacked them in the face. MOST people get lied to and screwed on their loans in either rate, fees or both.
They go to friends and family members under the guise of a “free” or “no cost” loans, and get taken advantage of.
The fact is that 98% of the people don’t know their ass from their elbow when it comes to knowing what they qualify for and what the best rate is for their loan, but 100% of people think that they do know and that they got the best loan for their situation.
If your relative got that rate, they probably locked on Weds Jan 23rd. 30 YR rates were as low as 4.875% intraday, but closed that day at 5.375%. The intraday low was probably the lowest ever, and it wasn’t there long.
All the people that call around shopping by rate, end up with the biggest liar, but still get lucky once in awhile.
