Hi All,

I'm a first time buyer here.  I had locked in at 5.875 and no points/originiation fees in early june and that was th best rate at the time.   The mortgage consultant had told me that I had a number of options with regard to rate changes. 

He mentioned that while no float down was offered, that there were a number of items that might help.

1.  I would be able to unlock and get the new rate for .5 points anytime before 1 week before closing.

2.  If rates fell by more than .5 (ie to less than 5.375), he said he could offer the lower rate at no cost, as he understood at that point I could shop around.

3.  At any time prior to 1 week before closing, I could lower the rate .25 for each point.

Is anyone experienced with this or can confirm this is true?  I've been approved for the loan, but never received the rate info when I locked, along with the above, although I had asked.

I'm not locking for another 30 days, and as it looks like the rates are down a bit, I'd like to be able to bring down the rate as in item 2 and buy down with 1 point. 

Any help/advice is appreciated.

Hi

It highly depends on whether you working locally with a Wells Fargo as retailer or with a broker. It all depends on what was the YSP available when they locked the rate at 5.875 and yes it is possible to re-negotiate the rate but usually there is a hit that broker/lender has to take on pricing.

The rate as on today without any points is 5.375% with Wells Fargo as a wholesale lender.

Let me know if you have any questions or need any help.

Hi,

Thanks for the response!  I'm working with a retailer directly (Sourced from WF website and email address is xxx@wellsfargo.com).  The lock date was June 9th.  Not sure if that helps to narrow down the options?

FHTB -

I'm in a very similar situation and have been told the same things you were told. I locked in with my Wells Fargo agent (not a broker) in early June at 5.75%.

To "re-lock" he told me would be a half-point charge. Keep in mind that Wells Fargo (at least as told to me) only allows one "re-lock".

My agent has not, however, mentioned (and I will definitely be asking) about the clause where if the rate drops by more than a half-percent then no fee to re-lock.  I'm gonna ask him but I'm not sure why they would waive the fee because "he understood at that point I could shop around" - theoretically you could shop around any time you wanted to, couldn't you? You'd have to eat the appraisal fee though as I doubt they're transferrable. Hopefully someone with experience/knowledge on this matter chimes in on this.

Please let me know how you make out. I'm surprised more folks in our situation aren't on these forums discussing these issues, since WF is such a huge lender.

mark

Hi Mark,

Thanks for chiming in.  I did insist a number of times on an email explaining that from the agent, however got nothing in writing.  He did confirm over the phone several times though.  I will make a point of letting you know what unfolds and am also surprised folks aren't all over this.

Thanks

Hi FTHB,

Yeah this whole process is strange. I'm "locked" in but I've never signed a thing... Everything is via phone conversations.

mark

Working directly with a bank on the retail side will offer more of these types of options for floating down the rate.  I'm a broker and while I can process the loan through WF on the wholesale side, I'm not allowed the same kinds of options.  Most of the other professionals on here are brokers too so we wouldn't be able to answer specific questions about what a bank is offering on the retail side of the business.  Since both of you have similar stories and have been quoted similar numbers for the float downs, I'm pretty sure you're safe to assume it's true. 

I'm working with WF and was given the same information.  relock with .5% fee.  rates today were 5.375% with no points and 5% with 1 point with them. 

I'm to close in a couple weeks.  would expect a better rate since it's less than 30 days lock but that didn't happen.  need  to ask. 

the original gfe I got was with 1 point fee.  talked to my agent and she removed the 1point origination fee.  if you're being charged for that...I would definately talk to them about that.

Thanks for the reply dhn. I'm not being charged an origination fee.

I will have to check with my WF agent today about the 5% with one point - that seems like too good of a deal.

Rates right now (since 7:30 last night) are at 5.25%, per their website:

https://www.wellsfargo.com/mortgage/rates/

Note they assume the 1 point origination fee.

Here is my latest GFE that I received a few weeks ago when I had locked in at 5.75. Totally regret locking in but that was when the rates shot up and looked like they may have kept going, so I panicked. Hoping for a reduced rate today!

my fees are different.  maybe because it's in a different state-I don't know...  wouldn't think WF would just throw in a bunch of junk fees...would they?

• appraisal fee $400
• processing fee $395
• final inspection fee $100
• tax service fee $105
• flood life of loan fee $19
• underwriting fee $400

 just wanted to say that I was told on-line rates are at 5.125% (on-line rates I was told are with 1 point) but she got approval for the 5% with 1 point.

dhn,

The fees you're talking about are only lender fees.  There's still going to be title fees, recording fees, escrow accounts, etc. that will be on your final HUD.  The transfer tax for Mark must be because he agreed to cover all taxes in the purchase agreement, that would not be coming from WF.  If you are doing a refinance than yours will be set up differently.

was told only the 800s were lenders fee all others are 3rd party fees?

• settlement or closing fees $400
• doc prep fee - attonrney $150
• attorney fee $75
• Title ins - lender coverage $595
• title ins owners coverage -$2414
• tax certificate $60
• recording fee - deed $24
• recording fee misc $75
• survey/plat/imprvmnt cert $378.88
• HOA Certification fee $815
• HOA Transfer fee $100
• HOA dues $450

total closing $4541.88

this is me buying from the builder and they're asking we go with their lender.  30 year fix. which is Preferred Home Mortgage Company (was told they're a branch of Wells Fargo bank).

Correct, all the other fees are third party fees.  Were you asking if you were being charged too much for lender fees or the third party fees?  The other poster, Mark, will end up being charged for an appraisal too, unless he's already paid for it, so your lender fees are pretty similar.  Some of your third party fees do seem strange though.  What is the HOA Cert fee for?  I've done plenty of condos but have never been charged anything like that.  Plus you should not be paying for both the lender's and owner's coverage for title insurance, the owner's coverage should be paid for by the seller.

I paid for my appraisal out of pocket, up-front at the time the appraisal was ordered.

As for the transfer fee - in my area there is a transfer tax. It is 1% where I'm at. Higher in other places I believe, like Philadelphia, PA is ridiculously high (like 4% I think I heard?).

mark

that's exactly what it is.  it's the transfer tax.  for a home in this subdivision the hoa takes a cut from the seller and from the buyer.  crazy.  makes me want to walk away from the whole deal just because of it.  uggg...

it's .5% the builder is taking some of the cost and the $815 is our part. 

oh sorry for listing the title insurance the builder is taking the $2414

I wasn't asking if these charges were too much.  someone mentioned that these aren't all of my fees.  just wanted to add them.

Now that the 10yr tsys and MBS have moved a good bit today, what are WF offering you?

I'm closing 7/31 and wondering if I should re-engage someone else for a better rate.  My scenario is as follows.

loan 360K, 20% down, Cred mid-score is 720.  What do you think?  I currently at 5.875 with no points.

Also, my attorney fees went from $75 on my GFE to $875 on my truth in lending disclosure, which I just got in the mail.  What gives?

Fees look like this for me:

Application Fee 495

Committment Fee 399

Flood life of loan fee 19

Tax service fee 80

Underwriting Fee 100

Courier/Msngr - 3rd party 30

Attorneys Fee 825

I'm closing on the same day. Wells Fargo is currently offering 5.125 but that should go down further tomorrow (they only dropped 1/8th today after the auction). You can see the current rates here:

https://www.wellsfargo.com/mortgage/rates/

Note the assumption of an origination fee, which I didn't pay so my rate is actually 1/8th higher than listed.

I just did a 'return to float' (WF term for a float-down) from 5.75 to 5.25 at 11:30 this morning. Cost me a half-point. Of course, by 1:30 they were offering 5.125. Tomorrow they'll probably be offering less. I should have taken the gamble but I won't beat myself up over it. If somehow the rate drops to 4.75 before my deadline then I'll gladly pay another half-point as it is worth it to me.

Back to your question - I'll respond with a question:

You do realize that you're running out of time, if you haven't run out already, to switch lenders right? I'm no LO/Broker, but I find it hard to believe you'd be able to get a new appraisal done in time for a 7/31 closing. Not by any major lender I wouldn't think. I'm probably wrong on that one though.

You'd also have to pay for another appraisal ($400 if memory serves me correctly).

Mark,

Indeed, I'm running out of time and it did take about 2 weeks for the 1st appraisal and also know about the $400 loss and that's exactly what prompted me to ask here.  My thoughts were that a loss of $400 would not be such a bad deal if I could relock with another lender at a lower rate.  Half a point is $1800 in my scenario and the best I was being offered on Thursday was 5.65 with no points/origination fee, while the WF rates page had posted 5.25. Of course, this wasn't a full half point swing and was 3/8 at the time.  Perhaps tomorrow, it will be the full half point and I can get into a better scenario.

Here's hoping!

Mark Siegrist:

You do realize that you're running out of time, if you haven't run out already, to switch lenders right?

I see.

Well, WF is now at 5.125 with no origination fee and, as you know, there is a good chance they'll drop further tomorrow/Friday. You have a 720 median FICO? I'm no LO but that is below the 740 for the best rates, so you may be higher than the 5.125 WF is offering right now.

I would call a WF agent and see what they say. I would think they'll have to fast-track everything to get it all in order in time for the closing this month, but money is money and I'm sure they could get it done.

Thanks for the encouragement!  I'm schedule to speak with my agent late morning and will take what I can get!  Ahh but, Friday is so close, but so far away!