I've just begun to eye rates and am wondering if the below seem like good deals, which to go for, and whether one looks good enough to lock today vs waiting.

Fees are $1700 in addition to the points.

I'm in Indianapolis Indiana and these are from Forum Credit Union

today

20-yr fixed 4.875 0 points 5.116% APR

20-yr fixed 4.500 1.250 points 4.885% APR
20-yr fixed 4.375 1.500 points 4.789% APR
20-yr fixed 4.250 2.000 points 4.720% APR

(for reference) 03-27-09

20-yr fixed 5.125 0 points 5.371% APR

20-yr fixed 4.500 1.875 points 4.962% APR
20-yr fixed 4.375 2.375 points 4.897% APR

Do you plan on being in the home for 5 years or more?  Are there options for 4.75% and 4.625%?

Yes and yes.

20-yr fixed 4.750 0.375 points 5.033% APR
20-yr fixed 4.625 0.875 points 4.968% APR

Given that you will be in the home over 5 years, if the lower rates don't cause you to exceed and LTV limit that could add to the cost or add PMI, the buydowns would be a great way to lock in an extremely low fixed rate.  I would go for the 4.25 or 4.375% rate.

They are somewhat over market.  At  zero Origination Fee and zero Discount Points, they are still hitting you with $1,700 in non-apr items, and are still collecting 2 points in apr fees (Underwriting, Doc. Prep., Admin. Fee, Processing fee) way to much.  At 4.875 they will also collect 1% on the back side from the lender.

4.875% 20 year fixed should not exceed an apr of 5.0 for a good deal.

Richard, some of the fees you have listed may or may not be included in the APR calculation.  In addition, without knowing the loan amount, anticipated closing date, and disclosed apr fees; you cannot determine what apr would be reasonable. 

richard shreeve:

4.875% 20 year fixed should not exceed an apr of 5.0 for a good deal.

So, you think that the apr should be less than 0.125% more than the note rate for a good deal??? 

Kent Mikkola:

So, you think that the apr should be less than 0.125% more than the note rate for a good deal???

really...that's what I was thinking...at 4.875% you should be able to get the APR below 5.1% or 5.2 at the worse...assuming good credit and ltv...

You can't simply state an APR range without considering the location of the property and the size of the loan.  The fixed costs are going to raise the APR more on a small loan than on a larger one.  States can vary widely on their taxes and title charges, thus impacting the APR.  Also, most originators are going to charge a higher percentage on a smaller loan than on a larger one as the amount of work in each loan is the same.

In Indiana, he should be able to get it done for not too much...loan amount is important factor here...as long as it's not below $100k, I will go out on a limb that at 4.875% he should be able to get the apr below 5.1, if not 5.2...after reprices on Friday, maybe not, but earlier in the week he could've...