Which type of Mortgage to go for?

NEW -> Contingent Buyer Assistance Program
Will mortgage rates continue to fall? I was quoted 5.75% at 0 points today for a 30 year fixed.



I was told that the Federal rates may fall mid Dec, but not necessarily affecting the mortgage rates. 5.75% seems pretty low to me, and I am hesitant of the chance it may fall lower.
 
that sounds too good to be true. we're in the process of locking in a rate for a 30-yr fixed, but it's nowhere near 5.75%. if it is, i would say grab it now. just because the feds lower the overnight rate doesn't mean there will be a same-size reduction in the 30 yr rate
 
Mortgage rates may fall slightly in the short term. Of course, the problem is that fewer and fewer people qualify. In the long term mortgage rates will likely rise as inflation and increased risk premiums are priced into mortgage rates.
 
<p>On a serious note, If anyone out there has knowledge of a 30 yr fixed, conforming at 5.75% with no points...please post the information here. I would love to refi my 6.0% fixed 30 yr down to 5.75%. </p>

<p>Shoob. Was that the in-house lender only ? </p>
 
No I dealt with Lennar's broker, UAMC, who shopped around for me via WAMU, Union Bank, Countrywide, etc... I'll find out what lender it is tomorrow and let you know.
 
Yeah, but you'd have to pay all those other closing costs. Maybe they are less there? Such as recording fees and title insurance etc, etc. It would take forever to break even at only a quarter point reduction.
 
Maybe I'll take CFC up on all the snail mail they've been sending me...."call for your private consultation on how to improve your mortgage"... blah, blah. Somehow I don't think it's my type of loan they are fishing around to refi. Guess it couldn't hurt. Title insurance should be discounted as the search was only done 2 yrs ago.
 
I am somewhat skeptical of the 5.75% for no points. I checked one wholesale rate sheet (that tends to be one of the better lenders for rates), and the spread between 5.875% and 5.75% was huge. You could get 5.875% for no points, but 5.75% would cost 1%. With a spread that big, it usually means the secondary market doesn't want loans below 5.875%. Sometimes the lender will tell you the "origination fee" is standard, but it is still a point at 1%. I would double check about the "origination fee".





If you are a gambler, and you think that the jobs report on Friday will be weak, then I would hold off until then to lock your loan. Of course, UAMC is a broker and can lock your loan at one lender and let it float at another.





That's just my €0.02, and it is not meant as advice.
 
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