Ray,
Rates dropped intraday on Weds. That is a fact. It’s no different than a stock dropping and bouncing back intraday, it happens every day.
If you are lucky enough to catch the low of the day, the broker doesn’t charge you more because you bought at the bottom.
Knowing exactly when on Weds the lock was done would determine where this would fall on a 1-5. My guess is that it was a 5. CRAPPY in costs & fees.
My guess is that in addition to charging the borrower a point up front, the broker is getting a rebate back from the lender, which means he overcharged him at that moment. My personal belief is that is wrong.
Exactly the same thing as a stockbroker charging a higher commission because buyer got a deal.
If a stock dropped from $10 to $5 intraday and closed at $8, and the buyer paid $5 but was charged a larger commission than usual because they got a low price, would most people be happy with the deal? It would be illegal.
Most people in the business are mortgage whores. They overcharge people based on what they can get away with, especially to someone coming back for a fourth time. They charge a fee upfront and are also getting a kickback from the lender.
I tell people how much a loan will cost them and if there is a rebate/kickback from the lender I credit it towards the cost that I quoted them. PERIOD.
$260K refi loan with me 2 was $5095 with me last month, yesterday, and will be next week as well.
That doesn’t change. Total closing costs GUARANTEED.
The rates change which will add or subtract from the fee charged to get that rate. I can still do 4.50% rates, but the cost is more. It isn’t a penny more in my pocket, it’s a buydown fee to the lender.
The illusion of the consumer that they are getting a half point discount for being a previous customer, and getting a better rate because they have an 800 score and 70% equity (in that situation a 700 score and 40% equity would be the same rate) is what amuses me.
Another joker quotes a rate that he received which when called on it, then admits he is a bank employee and gets special treatment.
Saying that I “just got” X% rate implies that other people can get the same thing at that moment, which just wasn’t true.
When misleading information is thrown around like it’s accurate, I have a problem with that.
I know that the mortgage whores do more business than me, I just don’t know how they sleep at night.
The borrower caught a low rate. His broker probably overcharged him to deliver it.
Both sides are happy….. HLS
