Profile picture for kp112200

Am I getting a good rate?

I am buying a house for $320,000 and putting a down payment of 10%. My mortgage company, which is through the builder, is quoting me interest rate of 5.625%. If I decide not to use the mortgage company through my builder, I lose 60k of incentives. I will have to end up getting a loan of 380k from outside. Should I go with my builders mortgage company or somewhere else?
  • August 18 2009 - Longmont
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Answers (16)

That's a pretty high rate.  What fees are associated with that rate?  Who is the builder?



  • August 18 2009
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Profile picture for kp112200
Standard Pacific is the builder. 5.625 is just the interest rate. I think APR with be higher. I am trying to find that out from the the mortgage company.
  • August 18 2009
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That rate is very high especially if you will be paying points. 
  • August 18 2009
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Could you explain the builder incentive again, it makes no sense.

The Builder can not give you $60k. 
What is the sales price?
Downpayment -
How much is the Builder paying towards Closing Costs?
  • August 18 2009
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Profile picture for kp112200
Original sales price is 380k. If I go with the builders mortgage company i get 60k in incentives. Making the final sales price of 320k. My down payment will be 10%, 32k. Builder is not paying anything towards the closing cost.
  • August 18 2009
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The builder sounds shady to me. 
  • August 18 2009
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So the contract will read Sales Price $320,000 if using their lender and if Colorado Lender ( above ) does the loan with way better terms, then the contract will read Sales Price $380,000? If that is correct, I agree with oldskoolballr, it's shady. Do you yourself understand why it is? 
  • August 18 2009
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Builders in general are desperate to sell homes in this market.  Demand that they either force "their lender" to offer competitve interest rates or allow you to use a lender of your choice.

They are sitting on tons of inventory in northern Colorado so should be pretty open to accomodating your request.
  • August 18 2009
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I bet the Builder's Lender's Appraiser sleeps well.
  • August 18 2009
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Are you purchasing as an owner occupant?
  • August 18 2009
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That doesn't sound right at all!  What are the incentives?  With rates as low as they are right now, 5.6% sounds very high to me.
  • August 18 2009
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What you are saying is against the law. Standard Pacific is a class act builder. I would bring this to their Corporate attention in Newport Beach, CA. If that doesn't work contact the CO Deptartment of Real Estate. ... Best wishes, Rudi
  • August 18 2009
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Profile picture for kp112200
Thanks all for your replies.
  • August 18 2009
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Actually, that might not be a bad rate. Many lenders require 20% down these days, so the arrangement the builder has with this bank might allow a lower down payment in exchange for a slightly higher rate. You might want to check with other lenders....
  • August 18 2009
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Stick to the real estate advice Spence.
  • August 18 2009
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If the builder is willing to sell the home for 320k he will do it regardless of the lender.  You are the buyer and in this market, you hold the cards. 
  • August 20 2009
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