Is this a reasonable rate lock cost?

Is that reasonable rate lock cost for today from my mortgage broker option #1 @4% cost 2.644% , option 2 @4.125% cost 1.516% and option #3@4.25 cost 0.705%. Property is in NJ Fords Woodbridge..

1 Answer

Every loan has pricing adjustments based on credit scores, property type, loan to value, loan purpose, loan size, and whether escrows are included in the payment. For example, a cash out loan on a condo for a 660 score borrower will be priced far differently than a rate/term refinance on a single family home for an 800 score borrower. Impossible to say whether those options are good or not good deals without knowing the complete details of your loan. The best execution rate on MND (rate an ideal borrower gets with an ideal loan, with no points) has been hovering between 4.125% and 4.25%. IF you are an ideal borrower (high scores, single family, not a cash out) those quotes seem a touch high. IF you have pricing adjustments due to any of the items listed previously, you may be about right. Hope that helps, let me know if you have any questions. Ted