Hi, all. Apologies if this is a question/discussion that has already been dealt with. The situation is this: I've locked in a 4.375% 30-yr refinancing rate with Chase for a refinancing. According to my contact there, I don't have a "floating" rate so if rates go down, I'm not going to get that benefit. The lock is a 60 day lock. I am having my appraisal this Tuesday and it was set up through... [more]
Hi, all. Apologies if this is a question/discussion that has already been dealt with.
The situation is this: I've locked in a 4.375% 30-yr refinancing rate with Chase for a refinancing. According to my contact there, I don't have a "floating" rate so if rates go down, I'm not going to get that benefit. The lock is a 60 day lock. I am having my appraisal this Tuesday and it was set up through Chase.
That all said, my friend has a mortgage broker who claims he can now get me 4.125% with no points as long as I'm conforming (which I am) and have a LTV of 75%. My question is, outside of the cost for the appraisal ($395 from Chase), is there any reason I shouldn't just explore best pricing with a mortgage broker. I assume the appraisal is going to be transferable even though it was initiated by Chase. I also assume that if I took my mortgage elsewhere, there would be some sort of exit fee by Chase which I'd need to calculate into my break-even. But outside of that, is it worth exploring given that it seems rates are getting around 4% now a days?
Thanks for the thoughts.
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Response by Socialist
about 14 years ago
Posts: 2261
Member since: Feb 2010
Who is offering 4.1% with no points? I just re-financed with Mortage Masters and got 4.5%. No points, and no closing costs.
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Response by jms8
about 14 years ago
Posts: 110
Member since: Apr 2011
Honestly it's fine to walk away from Chase, but 4.1% sounds too good to be true, has your friend run all your financials etc? Doubt anyone is getting 4.1%
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Response by ags
about 14 years ago
Posts: 25
Member since: Apr 2010
Appraisal is likely not transferrable ( you'll need to make sure - depends on the bank ). If you paid application fee, it's not refundable; otherwise, there shouldn't be any exit fee. Look through your application docs to confirm. You might also want to talk to chase people and tell them/show them that others are offering a lower rate, they might consider it, but don't hold your breath. See what costs are involved with the broker ( e.g., application fee ) and figure out how much would it cost you to apply at both places. Then see how much 1/4% saves you and make a decision.
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Response by jim_hones10
about 14 years ago
Posts: 3413
Member since: Jan 2010
socialist, isnt the party supposed to provide for your housing? isnt homeownership terribly capitalistic thinking?
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Response by ballard7
about 14 years ago
Posts: 5
Member since: May 2007
Thanks @ags. Makes sense. I'm surprised that appraisals aren't transferable from the perspective of the valuation. Perhaps it would require an additional fee but I would have assumed that they wouldn't re-vaue the property.
@Socialist, maybe the 4.1% is with a lot of conditions. I'll need to look further into it.
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Response by apt23
about 14 years ago
Posts: 2041
Member since: Jul 2009
Well the operative word here is "claims". If a bank offered you a better deal, it would be one thing. A mortgage broker who "claims" he can get you that rate is entirely different.
On the plus side, if there is a financial meltdown coming because of the Euro crisis, it looks like Chase may in a good position. If the broker comes up with a loan at a suspect institution that may need to sell the loan at some point, are you better off. I think going with a first class institution in these heady times -- and a sure deal -- might me worth the negligible difference.
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Response by REMom
about 14 years ago
Posts: 307
Member since: Apr 2009
Ask Chase if you can buy down your rate. I had a Chase loan and rates dropped during my locked period and I think I paid $500 to buy down my rate by 25 bps.
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Response by 300_mercer
about 14 years ago
Posts: 10553
Member since: Feb 2007
ballard, what is the penalty from Chase if you go to someone else? Usually it is in form of committment fee and should be disclosed in truth in lending form. In general, bigger banks tend to be more expensive.
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Response by hofo
about 14 years ago
Posts: 453
Member since: Sep 2008
make sure is 4.1% APR, not the rate.
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Response by ballard7
about 14 years ago
Posts: 5
Member since: May 2007
Thanks for all the advice. I like the idea of buying down my rate.
@300, i think there's a $1,100 or so fee to exit Chase. I spoke with the other mortgage broker today and he confirmed he could do a rate of 4.125% today. If i can buy down my rate by 25 bps from Chase for $500 I'll probably just do that. But if they don't let me, I'm inclined to explore the mortgage broker route...
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Who is offering 4.1% with no points? I just re-financed with Mortage Masters and got 4.5%. No points, and no closing costs.
Honestly it's fine to walk away from Chase, but 4.1% sounds too good to be true, has your friend run all your financials etc? Doubt anyone is getting 4.1%
Appraisal is likely not transferrable ( you'll need to make sure - depends on the bank ). If you paid application fee, it's not refundable; otherwise, there shouldn't be any exit fee. Look through your application docs to confirm. You might also want to talk to chase people and tell them/show them that others are offering a lower rate, they might consider it, but don't hold your breath. See what costs are involved with the broker ( e.g., application fee ) and figure out how much would it cost you to apply at both places. Then see how much 1/4% saves you and make a decision.
socialist, isnt the party supposed to provide for your housing? isnt homeownership terribly capitalistic thinking?
Thanks @ags. Makes sense. I'm surprised that appraisals aren't transferable from the perspective of the valuation. Perhaps it would require an additional fee but I would have assumed that they wouldn't re-vaue the property.
@Socialist, maybe the 4.1% is with a lot of conditions. I'll need to look further into it.
Well the operative word here is "claims". If a bank offered you a better deal, it would be one thing. A mortgage broker who "claims" he can get you that rate is entirely different.
On the plus side, if there is a financial meltdown coming because of the Euro crisis, it looks like Chase may in a good position. If the broker comes up with a loan at a suspect institution that may need to sell the loan at some point, are you better off. I think going with a first class institution in these heady times -- and a sure deal -- might me worth the negligible difference.
Ask Chase if you can buy down your rate. I had a Chase loan and rates dropped during my locked period and I think I paid $500 to buy down my rate by 25 bps.
ballard, what is the penalty from Chase if you go to someone else? Usually it is in form of committment fee and should be disclosed in truth in lending form. In general, bigger banks tend to be more expensive.
make sure is 4.1% APR, not the rate.
Thanks for all the advice. I like the idea of buying down my rate.
@300, i think there's a $1,100 or so fee to exit Chase. I spoke with the other mortgage broker today and he confirmed he could do a rate of 4.125% today. If i can buy down my rate by 25 bps from Chase for $500 I'll probably just do that. But if they don't let me, I'm inclined to explore the mortgage broker route...