Can I keep the interest rate I was offered on a property, even if I change it to a different house??
by Mortgage Rates on Sunday, October 24th, 2010 | 2 Comments
-
Mortgage Info
-
Updates
-
Useful Links
-
-
Tags
2010 About article Auctions bank banks best Business buyers change Credit Debt Equity Financial First fixed Foreclosure From good Government Help Home house Housing interest Loan Loans Market more Mortgage Mortgages Need News options qualify Rate Rates refi refinance Refinancing should this Time variable would-
Meta
They are trying to scam you. Rates are set on your credit and ability to pay. Just because you want to borrow less money now, they want you to pay more interest. Walk away. Find an honest place to mortgage your new home.
The answer to this question is not quite as simple as “they’re trying to scam you.” Ask yourself these questions:
1. During the course of your negotiations with the first property, how much time passed? Was it more than a couple of months?
2. During that time, did anything bad happen to your credit profile?
3. Why a different advisor?
Here’s what it sounds like: advisor #1 was getting their origination fee up front, relying on the seller to pay closing costs, because it may have been included in the purchase agreement. Advisor #2 is yield spreading for their origination, because they can’t be certain that the seller will pay closing costs. Thing is, yeilding 2 points off the back end doesn’t raise the rate by a whole helluva lot, so the loan size must be fairly sizeable to make it an extra 200 a month for 10000 less on the purchase price, and loan size factors into rate as well. Advisor #2 could also be looking at a different kind of bank, or Advisor #1 could have tried to qualify you for a different program, that you may not have qualified for once you got to underwriting. It’s a bigger issue than “they’re trying to scam you.”