Where To Get the Best Mortgage Rates?

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GrewUpInIrvine_IHB

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<p>Hey gang - </p>

<p>As I contemplate buying a home, I find that 50% of my time is dedicated to researching the rates currently available at various lenders - as well as where rates are headed. I'm wondering what experiences IHB'ers may have had past, present, etc. with various lenders, as well as the relative "value" offered by the lender. I know enough to see what "incentives" new builders-lenders may offer, as well as to "price" on-line brokers (eg. E-trade/Ameriprise) with the "standard" lenders (BoA, etc.).</p>

<p>I seem to have stumbled across the fact that there are many credit unions, which are willing to broker a mortgage loan - for dramatically lower interest rates and application costs. Eg. My "jumbo" rate on e-trade for a 30-year fixed with 20% down would be almost 7.25% with zero points. Conversely, several credit unions purport to offer the same jumbo loan for 6.375% and zero points. It seems to good to be true! Any thoughts?</p>

<p>GUII</p>
 
<p>I use these guys to watch rates:</p>

<p><a href="http://www.mtgcapital.com/ratesheet-fixed.html?state=ca&rs=fixed&p=1">http://www.mtgcapital.com/ratesheet-fixed.html?state=ca&rs=fixed&p=1</a></p>

<p>They are usually the lowest internet lender at any given time... Lender fees are $900. There were times, especially after August, that my wife's credit union, OCTFCU, bested even internet rates by half a point or more. I assume this was due to the lack of liquidity in the secondary credit markets. This doesn't appear to be the case now:</p>

<p><a href="http://www.octfcu.org/rates_intranet/www_rerates.asp">http://www.octfcu.org/rates_intranet/www_rerates.asp</a></p>

<p>Rate for a 30-year jumbo loan program at this credit union is actually higher and the loan costs more. Many credit unions charge thousands to do a mortgage, so the zero point rate you see might be with an origination charge of half point or more. Check the APRs. The origination charges should be reflected there if I'm not mistaken. </p>
 
I agree with ipoplaya on <a href="http://www.mtgcapital.com" target="_blank">www.mtgcapital.com</a> Their rates are the lowest I've found as well. I've used them and had a good experience. But there is not much hand holding with them and I don't think I ever spoke on the phone with anyone.





If you feel more comfortable with some of the big lenders who are more accessible over the phone or in person, then I would highly recommend getting them to match the GFE from mtgcapital. A buddy of mine was getting a loan through Countrywide (the broker was a friend of a friend... ) and believed that he was getting the best deal. After insisting a few times that he simply apply at mtgcapital and get a GFE, he finally did and found that he would save $9k and get the same rate Countrwide was giving him. He asked Countrywide to match, and they said they couldn't. He hung up, and they called him back in 15 minutes saying they would do it.





Another lender I highly recommend is PenFed (<a href="http://www.penfed.org" target="_blank">www.penfed.org</a>) - Pentagon Federal Credit Union. Anyone can become a member (see point 6 here: <a href="https://www.penfed.org/howToJoin/overview.asp" target="_blank">https://www.penfed.org/howToJoin/overview.asp</a>). Sometimes their rates are even better than those offered by mtgcapital. Also, if you are a new customer, they waive many of the closing costs. They are a little slow but the rate is locked for 90 days I believe.
 
Thanks Zovall. Just a note on penfed - if you are lending more than 750K, you must have a minimum of 25% down! Geez. Whatever happened to 20%? Last night I also ran across "digital credit union." They seemed to have incredible rates.... but I'm not sure of the loan "conditions" or fees.
 
<p>GUinIR</p>

<p>Lenders often have various reasons to offer different rates at different times. Sometimes it depends on their reserve situation, trying to capture market share, or other inhouse situations we will never know about. I have found that no single entity is the lowest for any long period. It is a very fluid market especially in todays credit situation.</p>

<p>My suggestion is to follow several types of lenders (CU,Banks, Mtg Cos) as you are doing to get a market trend and when you are really ready to buy get several quotes for that point in time. What is "best rate" today may not be the same in months or even a few days. Your financial situation will also affect your rate with different types of lenders.</p>

<p>You won't really know until you are ready to lock your loan. Sounds uncertain but it is that way.</p>

<p>Regards</p>
 
I second penfed. A little slow, but worth it.



30 year fixed is 6.5%, but i've seen it as low as 6% this past month. They have almost no fees. My refi is going to cost me around $1000 all in for a 750K jumbo.



I took the 5/5 Arm for 5.125% and no points. Note that penfed is the only place i've seen offering this product. Rate adjusts every 5 years at 2% max every 5 years. Perfect product for people planning to upgrade in 10 years.
 
<p>"I agree with ipoplaya on <a target="_blank" href="http://www.mtgcapital.com/">www.mtgcapital.com</a> Their rates are the lowest I've found as well. I've used them and had a good experience. But there is not much hand holding with them and I don't think I ever spoke on the phone with anyone."</p>

<p>At MTG, I work with a rep named Greg Schneider. He is very accessible over the phone. I am ready to go with MTG on a refi when the 3/1 I/O gets down to 4.5% on zero points. Countrywide hasn't been willing to match MTG's GFE and I've tried that twice over the last couple of weeks. Feels like CFC is getting a little stingy about competing.</p>
 
GrewUpInIrvine,



I am a member of DCU(www.dcu.org) and got a loan from them two months back 6.375, 30 yrs fixed (no points).

For Jumbo loans, I recommend them.

NO PMI.

right now their rates are at 5.875 no points 30 yrs fixed.

very easy to deal. The only problem is that they are in east coast.



Veekay
 
Not really a problem.

You have deal with them early in the morning and they are gone by noon(PST).

I certainly recommend them. I am banking with this Credit Union from last 8 years and they are great.

You will receive what you have been promised (I mean whatever they announe on net).

Goodluck.



VeeKay
 
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