Mortgage shopping strategy?

Nov 23, 2020 4 Comments

#mortgage #housing

Hello. I am about to get approval for a loan from builder’s mortgage company.

I am buying a townhome with 20% down and 550k loan.

I have locked into the rate through morty (quicken loan) for 2.75% (apr 2.76%). I do not plan to keep the same house for more that 5 years, so no point purchase here.

Anything that I should do to get better rate from builder’s finance company? They will through in 9k credit if I close with them.

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TOP 4 Comments
  • Dropbox
    SnVD67

    Go to company page Dropbox

    SnVD67
    Builders finance can likely provide you with better terms than a broker or large bank due to some laws allowing these builder credits. We got 20k credit which we used to buy points on the loan in excess of the best rate the banks could do. Then at tax time we got a credit for the points. It was total bullshit but legal.

    Expect the builder to charge a outrageous fee for points and give you a shitty rate from their inhouse finance arm, but if it works out against your external loan offers it works out.
    Nov 23, 2020 1
  • Uber
    uberific

    Go to company page Uber

    uberific
    Just like with TC. You need competing offers. Play them off each other until you have the best deal
    Nov 23, 2020 0
  • Facebook / Eng
    gghhgg

    Go to company page Facebook Eng

    gghhgg
    Is it arm? Of yes, you should be able to get better rate. Try 10 ARM with keybank
    Nov 23, 2020 0