Profile picture for tiger3599

BofA still quoted me at 4.50% for 5/1 ARM

I thought rates improved this week so far but this is the same rate as i received last week from them.

Loan 217k; 800 credit score, Illinois, townhome but HOA pays for exterior so take a hit as considered Condo.

Please help!
  • July 21 2009 - Algonquin
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Answers (7)

Tiger3599,
A lot of advice here with little information to go on.  That can be rather dangerous.

A 5/1 today is priced very well with many lenders.  However, in order for anyone here to even give you a rate you need to tell what your DTI is and also the home value.  800 credit scores on whom?

Once you reply with the above information then to peg a rate will be a lot easier.  But, just for kicks and giggles . . .   Assume your DTI is fine, 800 scores are valid and your LTV is at 80% or less.  Your rate should be 3.875.  Skinny loan in terms of ysp.

Your best bet is to look to the right of this page and contact John Paunan.  Though it looks like he is ranked only 3rd in Illinois, it is a flaw in the ranking system.  He has 104 great reviews with only on 4 out of 5.  I think that beats 28 and 7 reviews hands down.  One doesn't get 104 great reviews for nothing.  Give him a call.
  • July 22 2009
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Profile picture for Key Lock Lending
Put on those track shoes and run away from bank of america.  There are many lenders pricing in the mid to high 3's on 5/1 ARMS. 

Unless they're paying all of your closing costs and buying you a 50" plasma for your trouble you have no business dealing with them.
  • July 22 2009
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tell them you've since found a lower rate...what is their rate now?
  • July 21 2009
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Profile picture for Save Financial
i think if you do your homework you can find better rate... why dont you request a quote on zillow.. lots of qualified lenders that will compete for your business 
  • July 21 2009
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Profile picture for SunTrust
Many ARM adjustments are also tied to the CMT (weekly average yield on treasuries, annualized). the initial fixed period is tied to swap prices.
  • July 21 2009
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Darrell is correct. The 30 year fixed is tied to the Mortgage Backed Security, which often follows the 10 Yr T-Bill in direction up or down. Most ARM's are tied to the LIBOR. You can follow the LIBOR through many websites.

You will probably find that a mortgage broker can get you a better rate than B of A, with slightly higher closing costs. Compare the two and see what your break even point is.
  • July 21 2009
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Rates have improved this week on the 30 year fixed.  If the 30 year fixed mortgage moves up or down, that doesn't necessarily  mean the 5/1 ARM will follow.  

  • July 21 2009
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