Is 3.375% at 2.125 pts on a single family house a good rate?
It all depends. In today's mortgage rate market there are several factors upon which the interest rate you get and the cost (points) depend. In the industry these are known as Lender Loan Pricing Adjustments (LLPAs). Some of the more important ones are FICO (credit) Score, Loan-to-Value (LTV)and Length of Lock (# of days).
And just to make a note (for us old timers), who would have ever thought you could get an interest rate anywhere near 3.375%? I remember the days when people told me they would buy a home when rates fell to single digits! These are artificially low rates (government control of the GSEs)... Sorry did not mean to get off on a tangent here.
If you are in California give me a call.
As Ray noted, there are many factors that go into pricing a loan. Typically you should be given a few options to consider that work within your budget. If you would like to speak to me directly, I'd be happy to help you. I am able to Lend Nationwide, so one call does it all, so to speak! Thank you and enjoy the night!
If you are a squeaky clean borrower in a single family home, that pricing seems a bit high. If you're in a condo, have scores under 720, or other pricing adjustments, it may be competitive. The bond market rallied last week, and rates dropped significantly throughout the week. I'm always glad to offer another opinion if you want one, and thanks for reading Mortgage News Daily.
Ted Rood 314-740-0004
I agree with Ted. If you credit is weak then the points start to add up and you may have to accept them .. But, at first blush, if your credit is good then and your loan amount is over 150,000$ then i wouldn't recommend you pay 2 plus points because you never know if you'll sell or refi in the next 3-5 years...