need suggestion on lock rate?

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Hello, Sajha expert,

My offer to purchase a house has been accepted, my lender (just pick up randomly) said. He can make 3.75 % (30 yrs fixed)interest rate (locked) 20 % DP./FICO 800/House price 700K. I have deposited escrow amount and its on process, meantime I asked chase bank loan officer(where i have accounts) He said He can make less than 3.5% (30 yrs fixed) interest rate locked for 45 days in my scenario. I told my agent and he said you need to pay appraisal for both process (two times).
I don't want to bump here and there. Just would like to think and pick one. If any friends faced or knowledge of this scenario please suggest... (they made 30 days escrow plan so i need to take decision quickly).

magorkhe1

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If you lower your mortgage to 15-20 yrs , it will lower to 2.85 and up . You will be paying more principle less interest,

gaulejetho

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Magorkhe1,
Thank you
My question is 30 year fixed rate same criteria.
why two lenders come with two rates? How this works?

Altijdgoede

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Don't just look at the rate. Ask for their offer and compare the fees. They have different fees and sometimes they give you credits also. So you need to check on that and come up with which offer is actually better beyond the mere interest rate.

nagios

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If you can get lower interest rate, I would suggest to go with Lower interest rate. Right now, rate of 3.75% is high for FICO 800 or greater. I can see some credit unions advertising for 3.35% for 30 years. If you can go with any credit Union near you, then they might be able to lower your interest fees. Dont worry about paying again for appraisal Fee, as each lender needs to have their own appraiser. Paying couple of thousand now for lower interest can save you thousands on long term.

Regarding chase, unless you get written on paper, don't believe them. Chase told me that they will match any rate from anywhere, and when I got lower rate then what they had quoted me, they backed out and stopped calling me for mortgage.

Altijdgoede

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nagios is generally right, but I would take this sentence with grain of salt "Paying couple of thousand now for lower interest can save you thousands on long term.".

You must calculate some of Present Value, Future Value, or Payment for the given period, interest rate, and the fees. I don't know what is the difference in fees, but you will be surprised how even a couple of thousand dollars easily make a difference in half or quarter percent difference.

gaulejetho

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Great thanks nagios. It seems like chase guy lender work on monthly salary (seems slow) but my agents pushing me to close the escrow quickly because other people also in backup (14 days /30days) close escrow. 3.75% guy works for commission so he seems super fast. I think its good to go with 3.75 % and later refinance.

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