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Broke my "lock" to get lower rate. Did I get a good deal?

Last month was locked into 4.99% 30 yr fixed 729500 loan with 1/8 point for 45 day lock. Called broker on Friday to see if he can take advantage of lower rates and he called me back and offered 4.625 for 7/8 point 45 day lock. I went for lower rate. Did I get a good deal here? Appreciate answers.

  • May 24 2010 - Marine Park
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Answers (4)

Yes, 'the new rate with the new point' is a good deal.
Usually, buy 1 point to reduce .25% or .375%(rarely) for the 30 years term.
your new lock is pay 3/4 point to reduce .375%
  • May 24 2010
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If you keep the loan for longer than 2.8 years, then yes you have a better deal. After 2.8 years you are better off by $161/month over the original terms and a 4.625% fixed rate on a $729.5K loan amount is a beautiful thing.  
  • May 25 2010
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Yes you got a great deal and made the right decision. That is a great rate and point combo for that high of a loan amount. Nice work.
  • May 26 2010
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Yes you did...and it's nice to see you gave your current lender a chance to keep the business instead of bolting to another lender to relock..
  • June 01 2010
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