Is %4.75 mortgage interest good for 30 year fixed?

New / Engdfg6#$
May 6 78 Comments

The other option is %4.25 interest for 7 year ARM.

This is for 10% down. Credit score is 770.
House in San Francisco. Planning to refinance at %20 downpayment in less than a year.

I was approved for these recently.

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TOP 78 Comments
  • Credit Karma BobAxel
    Did you shop around?
    May 67
    • New / Engdfg6#$
      OP
      No
      May 6
    • Credit Karma BobAxel
      I would suggest to do so.
      May 6
    • New / Engdfg6#$
      OP
      You mean for other houses or other lenders gor this house? The offer deadline is close
      May 6
    • Google xkvpspecmg
      You can even shop around for loans after you are in contract, but you have to move fast. There's no obligation you have to go with the same lender you got the pre approval from. As long as the loan closes, nobody cares.
      May 6
    • New / Engdfg6#$
      OP
      Then I will get multiple hard inquiries, and it hurts credit
      May 6
    • Google xkvpspecmg
      No it doesn't. Shopping for loans is accounted for in the credit score calculation. Look it up.
      May 6
    • Fannie Mae
      :3

      Fannie Mae

      BIO
      .
      :3more
      What is the point of a high credit score if you're not going to use it to get the cheapest loan possible? As long as your FICO score is up above 760 oh, then it doesn't really matter because all interest rates will tend to be the same at that point
      May 7
  • New / Engdfg6#$
    OP
    Can anyone please explain to me what are the "points" everybody is talking about?
    May 83
    • Amazon / Engn0v
      Points are trading cash up front for a discounted interest rate; or getting a rebate for taking a higher interest rate. Each point is 1% of the loan amount.
      May 8
    • New / Eng35sucks
      How much discount in interest rate each point has?
      May 9
    • Amazon / Engn0v
      Depends on the lender, demand, and the market. Offhand, one lender I have a quote handy for is offer 0.25% interest rate deduction for 1 point. You can do the math on where breakeven for this is. Usually I've found paying one point is worthwhile if you hold the loan longer than about 8 years (though this varies). In an environment where rates are decreasing, you are usually better off just waiting and refinancing. In an increasing interest rate environment, it might make sense.
      May 9
  • Facebook FfEV64
    That's high. You should be closer to 3.75 for the 30 year fixed.
    May 61
    • New / Engdfg6#$
      OP
      Is this still the case, now that fed increased the rates?
      May 6
  • Amazon / Engn0v
    No, you can get 3.75% on 30 year fixed conforming
    May 68
    • Microsoft MSFTBRO
      Where? 3.75 is not possible
      May 6
    • Amazon / Engn0v
      My mortgage broker is offering 3.75% today (I get daily email quote). She is in Seattle. Jumbo's are 4.25%. I'm sure you can find the same in bay area.
      May 6
    • New / Engdfg6#$
      OP
      Mine is jumbo as well.
      May 6
    • New / Engdfg6#$
      OP
      I'm putting %10 down now, and I'm planning to refinance next year
      May 6
    • Google xkvpspecmg
      Lenders often quote interest rates with different points to make the comparison hard.

      What you see in an email quote or going to a bank website and looking up current rates, and what you'll actually get on a certain date (which you'll only know if you are applying for a pre approval) are quite often different.
      May 6
    • Amazon / Engn0v
      This is a loan broker who I've closed three loans with. Her rates are solid and she can close without games.
      May 6
    • Amazon / EngIVY55
      @n0v can you share her information in a DM?
      May 6
    • New / Engdfg6#$
      OP
      Can you share with me too? I don't know any broker. The one I'm working with is what the selling agent introduced.
      May 6
  • Amazon SeekingHLP
    If you are planning to refinance within a year or 2, my lowest ARM or interest only option. Probability of rates going down seems to be a bit higher than 6 months ago based on inflation data
    May 64
    • New / Engdfg6#$
      OP
      I didn't get your first sentence. Could you explain again?
      May 6
    • Google xkvpspecmg
      I think it means:
      Choose the ARM option whose interest rate will go up soon, eg if there's a 1/1 or 3/1, go for that.
      Or go for an interest only loan meaning you won't build equity, but presumably the interest rate will be the lowest possible
      May 6
    • Amazon SeekingHLP
      Yes, ARM option comes in a few flavor, 5/1 or 7/1 are more common. That means, bank will provide low interest rate now but after 5 or 7 years it will change every year based on that year’s interest rate. These mortgages are generally cheaper than fixed rate but should be used only if you are planning to refinance before variable rate starts else may become very costly.
      May 6
    • New / Engdfg6#$
      OP
      Very helpful. Thank you!
      May 7
  • Amazon SeekingHLP
    Which location, what’s your FICO? How much down payment?
    May 64
    • New / Engdfg6#$
      OP
      San Francisco, FICO is 770. %10 downpayment. I will refinance next year when I save enough to make it %20 down. That decreases the rate. Is that a good plan?
      May 6
    • Facebook public2
      Haha no
      May 6
    • New / Engdfg6#$
      OP
      Why?
      May 6
    • Amazon SeekingHLP
      Have you tried 2 loans, I forgot the name but the second loan with help you go over 20% (hence the cheaper mortgage) and you will pay off the higher percent loan faster
      May 6
  • Intel McComic
    Mine is 3.75% from 2016 30 year fixed
    May 61
    • New / Engdfg6#$
      OP
      This was before Fed increased the rates.
      May 6
  • HMS Holdings PWQL66
    I would highly recommend a fixed rate over ARM. The more you put down, the better your fixed rate. But, both of those are not very good rates regardless.
    May 60
  • Facebook public2
    No. Also don't buy with less than 20%
    May 64
    • New / Engdfg6#$
      OP
      Why?
      May 6
    • Facebook public2
      Because the rate is far to high, pmi is a waste, refinancing within a year is a waste of money (closing costs) and a gamble (rates could rise). Continue?
      May 6
    • New / Engdfg6#$
      OP
      Do you think my credit score is too low? Right now it's 770. Would I get a better rate if I try to improve the score to 820 or so?
      May 6
    • Facebook public2
      Probably not, get a better lender and potentially do a flyby.
      May 6
  • Amazon fKhc35
    3.25% 10/1 ARM
    3.00% 5/1 ARM
    May 63
    • New / Engdfg6#$
      OP
      Then why is my rate so high? My credict score is 770. I'm putting %10 down, and it's a jumbo loan
      May 6
    • Amazon fKhc35
      Get the deal done and refinance it.
      May 6
    • LinkedIn hgfth
      Hey, which bank is this? Can you please provide the agent details?
      May 8
  • Uber f7d83fju
    It’s high because it’s 10% down. Last month I got 3.5% 30yr with 25% down
    May 62
  • Microsoft kotmat
    unless you can comfortably put at least 20% dwn dont buy. you should also not get an arm loan. easy money is what blew real estate bubble in 2005-2012 and is now repeating again. when it blows up the taxpayer is going to bail out banks that loaned money to people who could not afford it
    May 71
    • Nvidia tronp
      It is not easy to get a mortgage now unlike 2008. You really have to qualify.
      May 8
  • Glu Mobile PQSK63
    I got 20% down, 3.5% 30 year fixed, 5k credit to closing cost, Wells Fargo. This is on a $1.3m loan.
    May 61
  • First Tech Credit Union / Consultant
    TT425

    First Tech Credit UnionConsultant

    PRE
    First Tech Federal Credit Union
    BIO
    Mortgage Consultant at First Tech Credit Union Seattle Market
    TT425more
    Do an 80/10/10 loan. 7.1 arm should be around 4.125%. That way you can pay off the 2nd loan once you have the cash and no need to refinance.
    May 60
  • Microsoft MSFTBRO
    I think it should be around 4.25 for a 30 year fixed.

    Unless you have shit credit.
    May 60
  • Broadcom Ltd. TmHR54
    Check bofa and wells. Aim for <4% with 10% down. With 20% down you can achieve ~3.75.
    May 84
    • Amazon uuuwuuuuu
      Really don't understand how anyone gets less than 4% this year. Are your mortgage balances all 1m+ and the rates are lower like that?

      My mortgage balance is only 550k

      I'm in the bay and tried looking everywhere in feb/march and lowest was 4% and now it is back at 4.25+

      Are you all paying down interest rates with points? When I think about rates I usually think of the rate that costs 0 pts first

      I sent to Chase, BofA, US Bank, and a few others
      May 8
    • Broadcom Ltd. TmHR54
      Recently closed 950k house with 20% down for 3.75 with wells. Bofa has similar rate. Each bnk gives better rate if you are their premium customer. Bofa has gold/plat/honor and they reduce loan as go up.
      May 8
    • Microsoft MSFTBRO
      How do you get on this premium customer because best rates I’ve seen are ~4.25
      May 8
    • Broadcom Ltd. TmHR54
      100k asset in bofa/merril edge
      May 8
  • Uber asdfjklq
    Got 7/1 ARM, 3% with 20% down.
    May 63
    • New / Engdfg6#$
      OP
      What's you credit score?
      May 6
    • Uber f7d83fju
      If you have 1m in cash with Wells Fargo, it will be 2.75% 7/1 arm woth 20% down
      May 6
    • LinkedIn hgfth
      Which bank?
      May 9
  • Adobe / Engtedxsg
    i got 4% on 30 year fixed in bay. jumbo loan(1.5M+)
    May 63
    • New / Engdfg6#$
      OP
      20% down?
      May 6
    • New / Engdfg6#$
      OP
      I'm putting %10 down
      May 6
    • Adobe / Engtedxsg
      More than that
      May 6
  • Google xkvpspecmg
    Which lender? Sounds pretty high
    May 62
    • New / Engdfg6#$
      OP
      Loan Depot
      May 6
    • Google xkvpspecmg
      Based on your update, I guess you are getting a high rate because of the low down payment.

      If you plan to refinance within a year or so, for sure, you could go for the ARM.
      But note that you'll be somewhat betting that the rates don't go up too much in the meantime
      May 6
  • Fannie Mae
    :3

    Fannie Mae

    BIO
    .
    :3more
    What's the debt to income ratio?

    Is this a confirming loan?
    May 62
    • New / Engdfg6#$
      OP
      Debt to income is anout 0.05. It's a jumbo loan
      May 7
    • Apple srand()
      A friendly advice: don’t kill yourself.
      May 8
  • Oracle morning sun
    For investment property Loan Amount 250K , 25% down interest 4.875% 30 years fixed, Wells Fargo. For house as investment property they seem to charge higher.
    May 110
  • Movement Mortgage QSaS36
    no not really ..what loan amt and what loan fees come with this 4.75% rate
    May 90
  • Amazon SeekingHLP
    Not worth paying
    May 90
  • New / Product
    ʕ•ٹ•ʔ

    NewProduct

    PRE
    Amazon
    ʕ•ٹ•ʔmore
    Just ask your agent to run some simulation of putting more downpayment. Or, reach out to other agents.
    May 60
  • Tower Research Capital HIqq01
    Fixed income analyst here. Fixed is better, you can always re finance.
    May 60

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