Did I get a good mortgage interest rate on my new home purchase? Re-finance?
Thursday, April 30th, 2009
shrek asked:
During 3rd week of Oct 2007 I locked in my rates with the lender for buying newly built home in the Denver, CO metro area.
My credit score was 720 and first-time buyer. For 30-yr fixed-rate on 175,000 loan, lender said existing rate was 6.5%. After negotiating, my final rate was 6.25% that too after buying down 1.5 points for $2400.
After having looked at other Q&A on yahoo answers, I feel that I am paying a higher rate than I was eligible with the same lender. Lender’s third party costs were also high, like $400 for HOA transfer, while he got 6000 towards closing costs from home builder.
So, I have two questions:
1. Did the lender hand me a high rate ( taking advantage of my ignorance) with some kind of deal with home builder?
Or, did I get a decent rate?
2. On yahoo finance, today I see the same lender’s rates are about 5.75. It can save me $100+ per month on my mortgage. So, should I re-finance right now ? Refinancing fee is $1750.
During 3rd week of Oct 2007 I locked in my rates with the lender for buying newly built home in the Denver, CO metro area.
My credit score was 720 and first-time buyer. For 30-yr fixed-rate on 175,000 loan, lender said existing rate was 6.5%. After negotiating, my final rate was 6.25% that too after buying down 1.5 points for $2400.
After having looked at other Q&A on yahoo answers, I feel that I am paying a higher rate than I was eligible with the same lender. Lender’s third party costs were also high, like $400 for HOA transfer, while he got 6000 towards closing costs from home builder.
So, I have two questions:
1. Did the lender hand me a high rate ( taking advantage of my ignorance) with some kind of deal with home builder?
Or, did I get a decent rate?
2. On yahoo finance, today I see the same lender’s rates are about 5.75. It can save me $100+ per month on my mortgage. So, should I re-finance right now ? Refinancing fee is $1750.
Appreciate your expert answer.
Ted