How do these mortgage rates sound?

[Fusion]

Good? Bad? Mediocre?

I am in the process of purchasing a condo in Clearwater and I did get locked in on a mortgage. Here are the details. Please let me know your opinion on how good the rate is based on my situation.

80/20 Loan - No money down

5/1 ARM Interest Only on the 80% Rate: 6.125
30 year fixed on the 20% Rate: 7.5

Obviously no PMI. No points and no loan origination fee.

My credit scores from the 3 major beareaus are 770/761/756. I'm 22 and have a very low DTI ratio.

[Amortized]

Why did you choose the 5/1 ARM? Staying in the condo short term? I was going to say the rate on the first mortgage was somewhat high till I saw the no points or origination fee and property type. Is there a reason you don't want to pay points, possibly staying in the loan short term? Are you picking up the closing costs as well? How long was the rate lock for and did they require you to pay for the lock? Hope your LO locked instead of floated. Many LO's will tell the borrower they locked the rate when in reality they let it float, if rates go down, your at the "locked" rate while the lo submits the loan under the new rates and makes more $$$ on the back end. Good luck.

[Epicman]

Why did you choose the 5/1 ARM? Staying in the condo short term? I was going to say the rate on the first mortgage was somewhat high till I saw the no points or origination fee and property type. Is there a reason you don't want to pay points, possibly staying in the loan short term? Are you picking up the closing costs as well? How long was the rate lock for and did they require you to pay for the lock? Hope your LO locked instead of floated. Many LO's will tell the borrower they locked the rate when in reality they let it float, if rates go down, your at the "locked" rate while the lo submits the loan under the new rates and makes more $$$ on the back end. Good luck.


:werd:

When I saw the scores I was thinking the rate on the 1st was kind of high. But then again no origination fee. What lender is it going through?

[Fusion]

Why did you choose the 5/1 ARM? Staying in the condo short term? I was going to say the rate on the first mortgage was somewhat high till I saw the no points or origination fee and property type. Is there a reason you don't want to pay points, possibly staying in the loan short term? Are you picking up the closing costs as well? How long was the rate lock for and did they require you to pay for the lock? Hope your LO locked instead of floated. Many LO's will tell the borrower they locked the rate when in reality they let it float, if rates go down, your at the "locked" rate while the lo submits the loan under the new rates and makes more $$$ on the back end. Good luck.

Yes I plan on moving in roughly 3-4 years. The seller is paying $3000 of closing costs. I owe only $757 out of pocket at closing. The rate locked is for 60 days (I'm closing right before 30 days anyway) and they did not require me to pay. I went through a broker here in Pinellas. I just like feeling comfortable that I got a good deal ya know? So what do you guys think?

[Epicman]

Yes I plan on moving in roughly 3-4 years. The seller is paying $3000 of closing costs. I owe only $757 out of pocket at closing. The rate locked is for 60 days (I'm closing right before 30 days anyway) and they did not require me to pay. I went through a broker here in Pinellas. I just like feeling comfortable that I got a good deal ya know? So what do you guys think?


Why was it a 60 day lock? Specially if you are closing within 30 days. I'm sure the lender is charging somebody for that lock being that long. How much was the price of the condo? Are you not escrowing for taxes?

[Fusion]

Why was it a 60 day lock? Specially if you are closing within 30 days. I'm sure the lender is charging somebody for that lock being that long. How much was the price of the condo? Are you not escrowing for taxes?

It just might be a 30 day lock. Sorry. $149,800 is the price. I put $1000 in escrow which as you know will cover my portion of the closing costs. Included in the closing costs is 4 months of real estate taxes. It's all spelled out pretty clearly for me on the good faith estimate.

[Amortized]

I just like feeling comfortable that I got a good deal ya know? So what do you guys think?

considering the factors you gave, you can relax, nobodies taking advantage of ya. Looks like a decent deal. Hope everything goes smoothly at closing for ya. Congrats on the purchase and keep those scores up.