I've been reading the mortgage daily blogs and news that this site has and I cant find any lender that is offering these rates. Today blog says that:  Lenders continue to offer par 4.625% to 4.875% for well qualified consumers. A few aggressive lenders are offering 4.50% for borrowers with high FICOs and low loan to values. I've been searching all over the internet offering 4.5 and cant seem to find one. Amerisave is about 5% for 0 points. Anyone know where to obtain these rates?

Ed, it all depends on where you are and what your specific situation is. A 0 points rate for me today, can range from 4.625% to 5.125% depending on the borrowers credit score, their loan to value, their loan amount, and the state the property is located in. While I may speak with one borrower and be able to offer 4.625% with no points because of their specific situation, I may only be able to offer another 5.125% for the same loan. The reason is the rate adjustments. Typically, a 680-690 credit score is considered a 'good' credit score. It's not fantastic, but it's certainly someone who has a history of paying their bills. While 3 years ago this 680 got the same rate as a 760 score, today there is a difference of 1.5% in cost that is required by Fannie Mae. In this case someone who says "I have good credit" could end up in the low 5's easily because of the pricing adjustment Fannie and Freddie are currently requiring. I would encourage you to shop around, and I don't mean look around internet sites, but talk to loan officers in your area. Find out what your specific credit score is so that you can provide it to them directly and say you are asking for a quote. Don't hold their feet to the fire if, when they pull your credit it is lower than what you expected, but at the same time if someone calls me and says I owe X, my house is worth X, my credit is X, and I want this type of loan, I can certainly give them a ballpark quote assuming their information is correct. I would suggest looking to the upper right of this page and looking in the directory here. Find someone in your state and give them a call or an email and start from there. Hope this helps,

Antonio

Im in IL with close to 800 score and LTV of 80%.  Does anyone know of a broker who can offer 4.5% 0 point like what the blogs say?

I would seriously check out the directory, looks like there are 4 MND members in Illinois. Send someone an email through the forum and see what they can do for you. I've found that the members of the forum are all very professional and I'm sure they will shoot you straight about the best possible rate they can get you. 4.5 is probably unlikely at 80% (it's not a hinderance at that LTV, but the best price break from Fannie/Freddie comes at 60% or lower)

AC

Thanks for the advice!!

Good response AC!

Ed, there are companies out there that have that agressive pricing - my company is one of them, but I work for a lender (and not in your state). Just keep looking and I'm sure you can find one!

ed l:

Im in IL with close to 800 score and LTV of 80%.  Does anyone know of a broker who can offer 4.5% 0 point like what the blogs say?

 

Ed, thanks for your post. However, both the Mortgage Rate Watch and MBS Comentary blog say that the rates offered come with atleast 1 origination point and standard closing costs. The Current Rates page http://www.mortgagenewsdaily.com/mortgage_rates/ says the rates may include points (which they will).

 I'm in IL and 4.5% is definitely available for your loan scenario but not without the 1 origination point and standard closing costs. You should have no problem finding that.

Be aware of someone taking the point and calling it by any other name i.e. underwriting fee, mortgage broker fee, lender fee etc. It's the same cost no matter what title it's given. The only difference to you is that points are tax deductible. No other charges are.

Thanks for the advice to all those that posted. Mike, I spoke to a lender who put there points as origination fees. Are origination fees also tax deductible?

One more point to consider is if you have a 2nd mortgage or are taking more than $2000.00 away from the refinaince it beomes a cash out refinance and the rate will worsen.

You'll want to speak with your accountant as to what can be deducted, however the general rule of thumb is that origination points are not deductible. Discount points are deductible. This is because the only actual mortgage deduction is interest, and discount points are essentially pre-paid interest (you are paying points to buy to a lower rate, making them essentially an interest charge) so they should be deductible. I've heard loan officers say you can deduct origination as well, but over the years I've checked with 3 different accountants and all of them said they would not allow that, as an origination fee is a fee, which has nothing to do with interest.

AC

Regarding tax treatment of Points, see IRS Topic 504 and Pub 936.    Origination points are deductible if paid vs. rolled into loan.  Depending on a few other factors, they may need to be deducted pro-rata over the life of the loan vs. all in the year paid.  

I spoke to a lender and ask about origination fees as points and he advised me that "from my understanding, on a refinance, the points are
normally only deductable over the life of the loan.  So lets say you pay 1  point, they (your accountant/IRS) spread that out over the
 30 year life of  your mortgage. " Anyone know if you pay the year when you refinaced the points are all tax dedutible or for the life of the loan? Thanks to everyone who posted and for the great advice!!!

With a refi you need to deduct over the life of loan unless the proceeds are used to improve the home.  Rules and examples on page 5 of IRS Pub 936.   Better than nothing, but I wish the mortgage brokers of the world would lobby for something better.  

www.irs.gov/pub/irs-pdf/p936.pdf   

I'm with you on the mystery rates.  I've been floating on a 20yr in MD and the best I've seen in 4 weeks is 4.75 with 1 pt.  Don't know if I'm being unrealistic, impatient, or if I should look for another broker.  Good luck!

Refigal--- you should hit up one of the Brokers on here that works in your area!