Mortgage rate comparison

[shocker]

I have been talking to a few lenders to see what type of mortgage fits me best and have not much about the rates. I do have two questions for those who are also going through this or maybe more importantly have already gone through this.

1) Regarding BofA physician loan: Did you get a rate that was comparable to the national averages for fixed or ARMs? Or was it significantly higher because of special loan type/no money down?...I have been following the bankrate.com rates and want to know if I will be able to get close to these or should I be thinking about much higher rate? I have a great credit score.

2) When do you lock in an interest rate? Can I lock one in at pre-approval (I have only been doing pre-cert)? Do I have to wait until I close? Will they lock it if I give them a deposit?

Thank you in advance, this forum has been extremely helpful.

---

Members don't see this ad.

 

[shocker]

I did read the thread below "5/1 ARM 6.69!", which was helpful until it deteriorated into rent vs. buy.

 

[165808]

For the BofA doctor loan, they told us what the prime rate was (around 6%, I think), then told us for the zero down doctor loan, it was 6.25%. Even though they say no points, I guess that is a point anyway? (my numbers may not be 100% accurate, I don't have them in front of me, but that's what I remember....there definitely was a difference, though, that I believe my husband said was a point). Apparently it had been in the 5% range earlier that week.

I believe she said you could lock-in the rate once you had the house and were ready to start official loan paperwork. Or they could float the rate for a while and hope that a lower one comes in. The lock-in was only good for a certain amount of time, so closer to applying, the better.

Eh, I realize now that that wasn't much help. Sorry!!

 

[RockfordWF]

For the BofA doctor loan, they told us what the prime rate was (around 6%, I think), then told us for the zero down doctor loan, it was 6.25%. Even though they say no points, I guess that is a point anyway? (my numbers may not be 100% accurate, I don't have them in front of me, but that's what I remember....there definitely was a difference, though, that I believe my husband said was a point). Apparently it had been in the 5% range earlier that week.

I believe she said you could lock-in the rate once you had the house and were ready to start official loan paperwork. Or they could float the rate for a while and hope that a lower one comes in. The lock-in was only good for a certain amount of time, so closer to applying, the better.

Eh, I realize now that that wasn't much help. Sorry!!

5.625% was the rate I was quoted for the BOA doctor loan.

 

[165808]

5.625% was the rate I was quoted for the BOA doctor loan.

Yeah, it had significantly increased the week we talked to her!! How sad....

 

[RockfordWF]

Yeah, it had significantly increased the week we talked to her!! How sad....

How is your credit? The interest rate varied based on your credit. Also, keep in mind that interest rates are dropping, so comparison shop if someone raises the rate.

 

[165808]

How is your credit? The interest rate varied based on your credit. Also, keep in mind that interest rates are dropping, so comparison shop if someone raises the rate.

It was not based on credit, it was just the prime rate that she gave us. She didn't run credit checks on us yet, it was just a conference call. To qualify for the doctor loan with them, you have to have over 700 or no deal. What I got from her is that as long as it was over 700, you get the prime rate of 6.whatever it was. She didn't talk about it varying. My credit is superb (if I do say so myself ), so I guess if it did vary, I would expect my rate to drop.

However, as I said in my previous post, she had said that the prime rate she was quoting the week before we talked to her was 5.whatever, just like you said, so it matters WHEN you're getting this info, too.

Either way, doesn't matter now, we're not going to do it until next year.

 

[shocker]

Thanks for the replies, I will just have to really watch the rate trends and try to hit at the right time.

 

[165808]

Sorry, my husband corrected me: it's not the prime rate that was quoted, I guess, but the average rate we could get....or something like that? I suck at this stuff

 

[The White Coat Investor]

I have been talking to a few lenders to see what type of mortgage fits me best and have not much about the rates. I do have two questions for those who are also going through this or maybe more importantly have already gone through this.

1) Regarding BofA physician loan: Did you get a rate that was comparable to the national averages for fixed or ARMs? Or was it significantly higher because of special loan type/no money down?...I have been following the bankrate.com rates and want to know if I will be able to get close to these or should I be thinking about much higher rate? I have a great credit score.

2) When do you lock in an interest rate? Can I lock one in at pre-approval (I have only been doing pre-cert)? Do I have to wait until I close? Will they lock it if I give them a deposit?

Thank you in advance, this forum has been extremely helpful.

A 100% loan is always more expensive than a comparable 80% loan, no matter what the loan guy says. How much more expensive varies. Remember that you have to look at rate, points, AND fees. What they give in points, they take back in fees. You can get a low rate, low points, a low downpayment and low fees, but you can't get them all!

You can lock in the loan after you have a contract on a property. If the property changes, your loan is no longer locked in. If you decide to go with a different type of loan, your loan is no longer locked in. You lock just by calling up the mortgage company or mortgage broker and telling them you want to lock.

 

[DoctorWannaBe]

I have been talking to a few lenders to see what type of mortgage fits me best and have not much about the rates. I do have two questions for those who are also going through this or maybe more importantly have already gone through this.

1) Regarding BofA physician loan: Did you get a rate that was comparable to the national averages for fixed or ARMs? Or was it significantly higher because of special loan type/no money down?...I have been following the bankrate.com rates and want to know if I will be able to get close to these or should I be thinking about much higher rate? I have a great credit score.

2) When do you lock in an interest rate? Can I lock one in at pre-approval (I have only been doing pre-cert)? Do I have to wait until I close? Will they lock it if I give them a deposit?

Thank you in advance, this forum has been extremely helpful.

The lady I talked to at Bank of America said that conventional loans (with 20% down) are only about 1/8% lower. She quoted me 6% on a 30 year fixed and 5% on a 5 year ARM earlier this week. According to her, most lenders won't let you lock in the rate unless you have made an offer on a house.