A bird in hand…

[s_county]

My loan processor just called and said I was approved.

It’s 192k, 30 year fixed at 5.375 with 1.5 points

Weird thing is the loan officer never asked me about the points. He just saw the rates move up and locked me in and then promptly went on vacation. Have not been able to talk to him – he’s back next week but by then it’s probably too late to change anything.

Now I’m looking at paying almost an extra 3k upfront for the loan. With the CA tax credit around the corner I’m thinking of moving the closing date until May. The loan processor said he would have to start over with the underwriter since my docs ( credit report, bank statements, etc ) will expire in May.

This is where the “bird in hand” saying comes in. My loan is here and it’s approved already. I guess historically I could have done worse than 5.375. The 3k extra I could blow on a TV, and probably won’t remember it 10 years from now. The 10k credit ? I didn’t even know about it until two weeks ago.

what do you guys think ?

Also, how long from where the loan goes to title until I sign at escrow ? It would bother me if the loan ends up closing on April 28 and I miss out on the credit. But I wouldn’t want to risk the loan currently at hand.

Advice ?

[(former)FormerSanDiegan]

I don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:

If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.

e.g. –

192k @ 5.375 = 1075 (prinicipal & interest)

182k @ 5.875 = 1076 (P&I)

So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).

The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.

Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.

I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.

I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).

[(former)FormerSanDiegan]

I don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:

If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.

e.g. –

192k @ 5.375 = 1075 (prinicipal & interest)

182k @ 5.875 = 1076 (P&I)

So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).

The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.

Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.

I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.

I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).

[(former)FormerSanDiegan]

I don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:

If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.

e.g. –

192k @ 5.375 = 1075 (prinicipal & interest)

182k @ 5.875 = 1076 (P&I)

So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).

The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.

Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.

I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.

I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).

[(former)FormerSanDiegan]

I don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:

If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.

e.g. –

192k @ 5.375 = 1075 (prinicipal & interest)

182k @ 5.875 = 1076 (P&I)

So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).

The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.

Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.

I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.

I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).

[(former)FormerSanDiegan]

I don;t know if you got a good rate or not (maybe HLS can chime in), but here’s how I view this:

If you took the 10K and apllied to the loan balance, how much would rates have to move up before you’d be paying the same as you would be with your current loan.

e.g. –

192k @ 5.375 = 1075 (prinicipal & interest)

182k @ 5.875 = 1076 (P&I)

So, a half point upward move in rates would knock out the 10k (if you had applied it to the loan).

The other way to look at it is to compare the cost in points of lowering the rate. Find out what 10K could buy you.

Those would give you an idea of what the risk/reward (interest rate increase)/(10K credit)
balance would be.

I seriously doubt that rates will move up by half a point in the time between when you locked in the last day or so and the time your loan officer returns from vacation.

I would run the numbers next week when your loan officer gets back or contact another broker in the meantime to see if you can get a better rate AND close after May 1 (asssuming the terms of your offer allow you to close later).

[ucodegen]

One of the things missing for estimating whether the rate is good is the LTV on the loan (Loan to Value). FICO and down payment also count. Is the 5.375% the base rate? Are there any additions (cash back.. etc which can affect the rates). Were the additions rolled into the 5.375?

[ucodegen]

One of the things missing for estimating whether the rate is good is the LTV on the loan (Loan to Value). FICO and down payment also count. Is the 5.375% the base rate? Are there any additions (cash back.. etc which can affect the rates). Were the additions rolled into the 5.375?

[ucodegen]

One of the things missing for estimating whether the rate is good is the LTV on the loan (Loan to Value). FICO and down payment also count. Is the 5.375% the base rate? Are there any additions (cash back.. etc which can affect the rates). Were the additions rolled into the 5.375?

[ucodegen]

One of the things missing for estimating whether the rate is good is the LTV on the loan (Loan to Value). FICO and down payment also count. Is the 5.375% the base rate? Are there any additions (cash back.. etc which can affect the rates). Were the additions rolled into the 5.375?

[ucodegen]

One of the things missing for estimating whether the rate is good is the LTV on the loan (Loan to Value). FICO and down payment also count. Is the 5.375% the base rate? Are there any additions (cash back.. etc which can affect the rates). Were the additions rolled into the 5.375?

[treehugger]

Currently in escrow and “floating” the rates appear to be looking optimistically in my favor, but it is day by day. We backed the closing date to May 3rd to capture all the goodies. HLS got the seller (bank/escrow company) to agree after my realtor asked the listing agent and she said no.

Call/e-mail HLS,he has been amazing (when rates went nutty 2 weeks ago he talked me through it). Not sure if I am supposed to post his info here, but if you contact me directly I will give you his info or look him up and e-mail him.

I have not closed yet and don’t want to jinx myself (already had some “lender drama”), but have been extremely impressed with HLS.

[treehugger]

Currently in escrow and “floating” the rates appear to be looking optimistically in my favor, but it is day by day. We backed the closing date to May 3rd to capture all the goodies. HLS got the seller (bank/escrow company) to agree after my realtor asked the listing agent and she said no.

Call/e-mail HLS,he has been amazing (when rates went nutty 2 weeks ago he talked me through it). Not sure if I am supposed to post his info here, but if you contact me directly I will give you his info or look him up and e-mail him.

I have not closed yet and don’t want to jinx myself (already had some “lender drama”), but have been extremely impressed with HLS.

[treehugger]

Currently in escrow and “floating” the rates appear to be looking optimistically in my favor, but it is day by day. We backed the closing date to May 3rd to capture all the goodies. HLS got the seller (bank/escrow company) to agree after my realtor asked the listing agent and she said no.

Call/e-mail HLS,he has been amazing (when rates went nutty 2 weeks ago he talked me through it). Not sure if I am supposed to post his info here, but if you contact me directly I will give you his info or look him up and e-mail him.

I have not closed yet and don’t want to jinx myself (already had some “lender drama”), but have been extremely impressed with HLS.

[treehugger]

Currently in escrow and “floating” the rates appear to be looking optimistically in my favor, but it is day by day. We backed the closing date to May 3rd to capture all the goodies. HLS got the seller (bank/escrow company) to agree after my realtor asked the listing agent and she said no.

Call/e-mail HLS,he has been amazing (when rates went nutty 2 weeks ago he talked me through it). Not sure if I am supposed to post his info here, but if you contact me directly I will give you his info or look him up and e-mail him.

I have not closed yet and don’t want to jinx myself (already had some “lender drama”), but have been extremely impressed with HLS.

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