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Pleasantly Surprised on Mortgage Rate

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  • Pleasantly Surprised on Mortgage Rate

    I'll be closing on my house in ~1 month. After doing some research on my credit score and rates online I was prepared for somewhere around 2.25-2.5% for 20% down and 15 year mortgage.

    My credit score on Credit Karma app were 737 on TransUnion, 743 on Equifax and 775 on my bank (WF)
    Student loans: 215k
    Salary ~300k
    Price of house 610k (big city, southwestern region)
    No other debt (car paid for, no cc debt etc)
    Single, no dependents.

    However, the mortgage officer just pulled my credit and its 699, 819 and 821 so he will be using the 819 and offered me 1.875%. I locked the rate but should I be shopping for a better rate than 1.875???
    Anyone in a similar boat?



  • #2
    No, take it and run.

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    • #3
      That's lower than what I figured you would have gotten. Seems like rates have crept up slightly over the last few months. I wouldn't look elsewhere.

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      • #4
        That's a great rate.
        the mistake is 20%.

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        • #5
          Originally posted by Peds View Post
          That's a great rate.
          the mistake is 20%.
          how is 20% downpayment a mistake? I thought thats encouraged.... can you elaborate?

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          • #6
            Originally posted by drmka26 View Post

            how is 20% downpayment a mistake? I thought thats encouraged.... can you elaborate?
            With a rate that low it's best to put down as little as possible.

            Comment


            • #7
              Originally posted by drmka26 View Post

              how is 20% downpayment a mistake? I thought thats encouraged.... can you elaborate?
              Peds wants you to save the cash for Bitcoin and GME where it can grow to the moon

              Comment


              • #8
                20% isn’t a mistake. It’s about how much comfort you have with leverage.

                Comment


                • #9
                  Originally posted by ENT Doc View Post
                  20% isn’t a mistake. It’s about how much comfort you have with leverage.
                  leverage for what...why are ya'll so cryptic.

                  Comment


                  • #10
                    I'll try to see what rates I get with 0% down physician loans... but I'm super happy with that 1.875.

                    Comment


                    • #11
                      Originally posted by drmka26 View Post

                      leverage for what...why are ya'll so cryptic.
                      There's a very good chance that you would easily beat that 1.875% per year by investing that money over a 15 year period.

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                      • #12
                        I doubt you will get near that rate with a physician loan. I closed in December 2020, 5% down, physician loan with Trust and got 3.275%.

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                        • #13
                          Originally posted by drmka26 View Post

                          leverage for what...why are ya'll so cryptic.
                          Leverage is using debt to acquire an asset. You are in the process of doing this right now. It creates a fixed expense. In downturns that fixed expense can be a problem. Higher the down payment the less leverage and more protection in economic downturns. But in a perfect financial world with no income shocks if your opportunity cost is greater than the mortgage then it makes sense to use the down payment and put it towards the alternative investment. It’s a trade off. There’s no “right” answer.

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                          • #14
                            surprised no one is asking for lender/closing cost or extra points etc. You can get that rate or lower but there may extra lender fee, points etc. You want to see loan estimate to see what you are paying.

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                            • #15
                              I find it highly unlikely OP could get a rate that low with less money down. There's a correlation there.

                              Comment

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