Am I being ripped off? I purchased a house in SE Michigan for $265000. I have excellent credit. I just locked in a 30yr fixed VA loan at 5.25% , paying 1 point. My broker has told me I am getting PAR rate. We close next week, so I don't think I have any choice but to go with what she gives me, or do I?

Ask for a copy of the Lock in agreement.

The par rate for VA is 5.00% and not 5.25%. Melvin is right, ask for the lock agreement that would tell you if that is the par rate or not. Also, it is not too late, You can still switch lender and close in 10 days.

Darwin.M

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A Par rate simply means that the lender isn't paying any premium to the broker for the rate. Depending on what lender the loan is locked with, 5.25% is very possible. There are times when the difference between .125% in rate prices out to a modest premium on the higher rate and having to pay discount for the lower rate. This situation is also considered par by most.

If 5.25% is honestly the par rate and the broker is charging 1pt then you are getting a very fair deal.

Most lenders ( some don't adjust ) will have a price adjustment for VA loans. So it may not totally be of base. Remember not all rate sheets are identical either.

Just because you ask to see a copy of the lock agreement, it doesn't mean you'll for sure be able to see the pricing.  But I do VA loans in Michigan and I can tell you that as of today for a 30 year fixed rate, the par rate is 5.25% after all the adjustments.  You're getting a good deal and an honest broker, lock it and close next week.  Hope that helps!

Oops, the guy originally posted on July 11, probably closed by now.

Yes I saw that also , Melvin List also commented on a thread I posted in March today he must be hitting them ALL!