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<p>Actually, I don't think so. His sister and business partner wanted to bunp it up an eight to get some yield spread premium, but he said no; was afraid to lose the deal. See--there are brokers who are good guys.</p>

<p>He starts at a new job Monday, and will work at the brokerage nights. Very sad.</p>
 
That rate was probably rate-locked a while ago. A 30 year fixed (417k or less and 80% ltv or less) is at about 6.375% w/ no points. 5.875 sounds <u>really</u> low..
 
From Bankrate:





30Y conforming: 11/16/2007:


5.699% APR 0 points with $8659 in fees or:


6.030% with $1264 in fees





For 30Y jumbo:


6.755% with $410 in fees





Pick your poison!
 
<p>Bishie,</p>

<p>Bankrate.com is crap... the 'rates' posted are ACTUALLY advertisements!!! (<--- 3 exclamations!!!) from sponsoring brokers...</p>

<p>The 5.69% with 0 points is NOT obtainable. I just checked the ultraprime, cuthroat 'friends and family' pricing I can make happen (keep in mind, this is making NOTHING), and that is about .25% below the PAR.</p>

<p>Just FYI.</p>

<p> </p>
 
Thanks you mortgage guys. You just answered a question I have had for awhile, which is, "Are some of these rates that I see and hear advertised really obtainable, or are they just advertisement?"
 
30Y conforming: 11/16/2007:


5.699% APR 0 points with $8659 in fees or:


6.030% with $1264 in fees





$8659 in fees is <strong>NOT </strong>0 points. That is robbery.





I checked on a lender I used to do business with, and if you want to pay $8k+ in fees, I would be able to do that 5.699% rate. A 0 point, no origination fee, for a friend deal, I would be able to do 6% with the $1264 in fees. Whatever the hell those <em>fees </em>are? You pay one way, or another, and no one works for free.





Some banks charge a 1% origination fee, but say it is a 0 point deal. That used to be the standard, but the Ditech 0 point deals killed it. BTW points can be a good thing.
 
<p>Here is an article that explains some of the choices regarding deducting points. I've always spread the deduction out over a period of time b/c my standard deductions have always been more lucrative. <a href="http://www.realestatejournal.com/buysell/taxesandinsurance/20020930-herman.html">RealEstateJournal | Don't Cheat Yourself On Mortgage 'Points'</a></p>

<p>My deduction ended up only being something like $30.00 per year though !</p>

<p>awgee probably knows the best answer.</p>

<p>I've also been told that if you don't plan on staying in your house for at least 7 years, don't pay points. I guess you won't make your money back if you sell sooner than that....</p>
 
<p>2. <strong><a href="http://forums.irvinehousingblog.com/account/233/">awgee</a></strong>


With <strong>1369</strong> posts</p>

<p>Whoa ! This blogger has been active lately ! </p>
 
Generally speaking, on the purchase of a home, you may deduct the points in the year the house is bought. Generally speaking, points paid for refi, 2nds, etc. are deductable over the life of the loan. And if the loan is paid off early, the remaining amount is deductable in the year the loan is paid off. But, of course, there are exceptions.
 
Troop makes a good point (eh, pun unintended), on when points pay payoff. If I take the difference in "fees" in the bankrate example, $8659 - $1264 = $7395. I would take the difference in the two payments, $400k loan amount, 5.75% = $2334 and 6% = $2398, a difference of $64. All you do is divide the $7395 by the $64, and it would take 116 months or almost 10 years for the points to break even. Not really a good deal. Sometimes it makes sense, sometimes it doesn't.





Points = prepaid interest and should be deductible. There is a gray area about origination fees not being the same thing, and are not deductible. IMO they are the same thing, but awgee knows the IRS better than I do.
 
<p>Go to <a href="http://www.freddiemac.com">www.freddiemac.com</a></p>

<p>The front page has the current 30yr fixed survey. Right now the average is 6.24% with 0.4 points in fees. If you hear anything way off from that, I'd question it.</p>
 
As of tomorrow Indymac will no longer write loans with negative amortization. Countrywide to follow suit. This is a nail in the coffin for those borrowers that already have neg am loans. These people can only afford neg am payments. Now the only product that they can afford is going away.
 
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