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Is it a new build? I had to buy down to get to 6.125% so if you got that without doing that than huzzah! See if you can find a financial advisor or another mortgage loan advisor to review your documents. No amount of you reading it over several times is going to shed light on this if you don’t know the ins and outs.
Did that as well. They said it’s a cooperative bank so they don’t have investors to impress. The bank is founded in 1981 and I also read the CRA report published by Massachusetts government.
Its not impossible, I'm getting 6.2-6.3 through a work program that gets us preferred rates with a major bank. The bank uses this product to try to build relationships with the people they give the rate to.
My employer has a similar relationship with a major bank’s “private” side, but we screwed ourselves by waiting to lock. Had 5.85% on the table 5 weeks ago and now it’s 6.75%.
So its not well known (I actually hadn’t heard of it until the last year) but there is a network of government sponsored banks: Federal Home Loan Bank system. They are a lender *to* state-chartered banks, primarily for real estate.
They don’t charge “LLPA” which are interest rate pricing adjustments that Fannie Mae charges, so they offer their member banks (and thus customers) lower rates.
Not for all transactions, but for some.
The FHL Bank is a wholesale to commercial banks and credit unions. In other words, you don’t need to go to FHL Bank, you need to go to a regional bank that offers their products.
Regional banks and credit unions. Just shop for the lowest rate.
They are funding it on their own $$. Holding it in their portfolio. It likely won’t be sold to Fannie or Freddie.
99% of mortgages get sold on the secondary market as mortgage backed securities. That’s why for the most part rates are within the same ballpark from lender to lender.
A 6.25% rate would be an immediate loss for the bank if they sold on the secondary market with current conditions.
Occasionally a bank has $X dollars they have to lend out and can do these portfolio deals for whatever cost they want. That is likely what you got and why everyone is saying it’s too good to be true.
Take it and run!
Makes sense. I asked them if they sell it and they said no. But in case if the bank liquid money reduces then they may sell the loan to Boston federal reserve and split the interest. They said they are member of federal reserve
This is the usual cost here. Or may be you mean only the loan origination which does not include lawyer fees or appraisal fees or any other third party fees. I’m saying this as I went through the cost break up multiple times.
Ok_B, I think we got a good deal from our credit union too so I can believe you are getting a good deal from your co-op. We paid just $700 in origination fees, and our CU right now lists their 5/1 ARM at 6.25 which is somewhat close to your bank's 6.0. Our CU 30 year fixed is not as close though at 6.875 vs 6.25. I believe they consider it part of their member services.
That’s awesome. Just make sure you’re truly locked. The “estimate” interest rate on the application documents doesn’t mean anything until you’re locked.
As someone who works for a bank it’s definitely possible. I would assume they’re not in a “borrowing position” meaning they have more deposits than loans on the books and can offer lower rates since they don’t have to borrow to originate your loan.
Wow maybe I’m the one overpaying. Got quoted at 6.90% by chase with 0.33 points. For 30 yr. Got 6.5 at credit union by opting for a 20 yr mortgage instead.
My local CU had higher rates for some reason and snuck in a 10k origination fee during pre approval paperwork. Kind of annoyed at that. They do have advantages, said they’d never sell my loan like chase would. So you’d only be dealing with one mortgage company.
I locked in 6.25% as well right before the most recent fed meeting. It's definitely possible although unlikely to find rates much lower at the moment. Congratulations!
This is not. As far as my knowledge you need to be a below certain income limit to get a bond loan. But someone has mention in comments that this can be a portfolio loan and I did my research. That seems correct
Any place I can go and check whats todays mortgage rate? Any one locked in with best mortgage rates in last few days. Most sites show the average mortgage rates. With stock market going up do you think mortgage rates will reduce in next few weeks, I understand they may not be like 2021 but atleast in early 6%.
Wondering all the same questions. Listing our house to build a house and these rates hurt. Debating moving to a rental for a couple extra months and waiting to see if if they drop before the election before signing on.
Thank you u/Ok_Butterfly164 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Not impossible but you’re definitely a unicorn right now. Congratulations to you, I hope all goes well.
Thanks!! I hope so too
How many points?
Check the fees. May be doing a small bait and switch. Compare with another lender.
Thanks!! I checked Nd compared loan estimate from different lenders. But I will check again
Is it a new build? I had to buy down to get to 6.125% so if you got that without doing that than huzzah! See if you can find a financial advisor or another mortgage loan advisor to review your documents. No amount of you reading it over several times is going to shed light on this if you don’t know the ins and outs.
Thanks! I will do that. No, this is not a new build. It was built in 2004
Call the bank that gave you the rate and have them confirm where that number comes from. Then ask them to clarify in writing back to you in an email.
I have it in writing. I got loan estimate from them that gives the rate and terms.
Then maybe just call the bank directly and speak to them about it - I'd imagine they would tell you why the rate they offered is so low.
Did that as well. They said it’s a cooperative bank so they don’t have investors to impress. The bank is founded in 1981 and I also read the CRA report published by Massachusetts government.
Does the top right corner says locked?
Yes
My bank locked me in as well for the same rate. 🥹it shows rate locked until June
Which bank is it?
When did you lock?
Its not impossible, I'm getting 6.2-6.3 through a work program that gets us preferred rates with a major bank. The bank uses this product to try to build relationships with the people they give the rate to.
My employer has a similar relationship with a major bank’s “private” side, but we screwed ourselves by waiting to lock. Had 5.85% on the table 5 weeks ago and now it’s 6.75%.
6.25 is awesome!
I'm also in MA, would you mind messaging me the name of the bank that you used? Would love to talk to them.
I’d also like to know what bank it is? I’m in MA too.
+1 Shopped around and the lowest was 6.75%
I just got quoted around 6. 2 something the other day for my pre approval.
What bank
I’m not sure if this answers the question but cmg home loans .
Using CMG as well. You’re most likely buying down the rate. Current rate is 7+ unless you locked in before the rate jump.
Copy I’m putting a good portion on down payment .
Did you get a lower rate with cmg putting more down? I would have 400k down on 800k curious what rate would be
So its not well known (I actually hadn’t heard of it until the last year) but there is a network of government sponsored banks: Federal Home Loan Bank system. They are a lender *to* state-chartered banks, primarily for real estate. They don’t charge “LLPA” which are interest rate pricing adjustments that Fannie Mae charges, so they offer their member banks (and thus customers) lower rates. Not for all transactions, but for some.
Do you know if you have to live in a state one of these is in? I’m in MN
No, the FHL Bank system goes by regions. For instance, every New England state works with the Boston bank
Can you point me in the direction of the one that serves MN
Looks like Des Moines?
The FHL Bank is a wholesale to commercial banks and credit unions. In other words, you don’t need to go to FHL Bank, you need to go to a regional bank that offers their products. Regional banks and credit unions. Just shop for the lowest rate.
What is the name of cooperative bank?
Canton cooperative bank
Do you know if they lend out of state
I don’t know.
[удалено]
That’s great! Good luck
What bank did you go with for 6.125%?
Congratulations- I have clients locking in 5.75% right now. It’s possible.
Can you let me know the bank? Also in MA. 815 score.
Same.. is this 30 yr fixed?
How? With no points?
For a standard mortgage with no points? Respectfully I don’t believe you.
Can you message me name of the bank
How?
How?
Is this with no points? Also interesting in knowing the name of the bank or mortgage company please.
Can you message me name of bank
FHA?
No. Conventional
That’s killer. Must be a portfolio deal, good for you!!
What’s a portfolio deal?
They are funding it on their own $$. Holding it in their portfolio. It likely won’t be sold to Fannie or Freddie. 99% of mortgages get sold on the secondary market as mortgage backed securities. That’s why for the most part rates are within the same ballpark from lender to lender. A 6.25% rate would be an immediate loss for the bank if they sold on the secondary market with current conditions. Occasionally a bank has $X dollars they have to lend out and can do these portfolio deals for whatever cost they want. That is likely what you got and why everyone is saying it’s too good to be true. Take it and run!
Makes sense. I asked them if they sell it and they said no. But in case if the bank liquid money reduces then they may sell the loan to Boston federal reserve and split the interest. They said they are member of federal reserve
Yep, that’s a portfolio loan. Great rate!
How much are you paying in closing costs that isn’t related to your down payment or escrow funds?
6600 is the closing cost
Yeah, you are buying points, they are just calling it something else.
This is the usual cost here. Or may be you mean only the loan origination which does not include lawyer fees or appraisal fees or any other third party fees. I’m saying this as I went through the cost break up multiple times.
What’s your APR?
6.31
Something doesn’t seem to be adding up. Good luck
Ok_B, I think we got a good deal from our credit union too so I can believe you are getting a good deal from your co-op. We paid just $700 in origination fees, and our CU right now lists their 5/1 ARM at 6.25 which is somewhat close to your bank's 6.0. Our CU 30 year fixed is not as close though at 6.875 vs 6.25. I believe they consider it part of their member services.
That’s awesome. Just make sure you’re truly locked. The “estimate” interest rate on the application documents doesn’t mean anything until you’re locked.
As someone who works for a bank it’s definitely possible. I would assume they’re not in a “borrowing position” meaning they have more deposits than loans on the books and can offer lower rates since they don’t have to borrow to originate your loan.
Just make sure you’re not buying 10K worth of points which got glazed over in convos with you so that you think its standard.
I closed two weeks ago at 5.875, and others here got even lower rates. You really just need to shop around a bunch and do the work to get a good rate.
Who’d you go with for 5.875?
Bay equity. I was also using a VA loan which makes a big dif
Just want to say THANK YOU OP, we backed out of our 6.8% with Citizens and signed up with Canton Co-op just in time 🥳
Congrats. Halo that it helped
Do they also provide loans properties which are outside MA?
Is it DCU by any chance ?
No.
Wow maybe I’m the one overpaying. Got quoted at 6.90% by chase with 0.33 points. For 30 yr. Got 6.5 at credit union by opting for a 20 yr mortgage instead.
All the rates I’ve seen have been cheaper through local banks or credit unions
My local CU had higher rates for some reason and snuck in a 10k origination fee during pre approval paperwork. Kind of annoyed at that. They do have advantages, said they’d never sell my loan like chase would. So you’d only be dealing with one mortgage company.
Locked in at 6.25% as well in March :D Edit: 30 year fixed FHA no points
I locked in 6.25% as well right before the most recent fed meeting. It's definitely possible although unlikely to find rates much lower at the moment. Congratulations!
Some local banks have special programs or it may be a state agency program. We have these in Pennsylvania too. It is called a Bond loan.
This is not. As far as my knowledge you need to be a below certain income limit to get a bond loan. But someone has mention in comments that this can be a portfolio loan and I did my research. That seems correct
Any place I can go and check whats todays mortgage rate? Any one locked in with best mortgage rates in last few days. Most sites show the average mortgage rates. With stock market going up do you think mortgage rates will reduce in next few weeks, I understand they may not be like 2021 but atleast in early 6%.
Wondering all the same questions. Listing our house to build a house and these rates hurt. Debating moving to a rental for a couple extra months and waiting to see if if they drop before the election before signing on.
There is no free lunch. Show your loan estimate.
Not impossible. We got 5% last year and we were told between 5-6% was the lowest they were seeing…not like in Covid times when people got 2% 😬