I'm an FHA lender here in ABQ and may be able to help, even if you only want a 2nd opinion.
Currently there is very little difference between HARP rates and non-HARP rates so even if rates stay stable, waiting for a better LTV won't benefit you much. Additionally, with HARP you won't have mortgage insurance (if you don't currently have it) where as a non-HARP mortgage at 95% LTV would require it. I'm here in ABQ at Gencor Mortgageif you want to look at options.
What will be needed by your lender is a signed and dated letter from your mother stating she is gifting you 50% of the appraised value of the home towards down payment. The letter should also state her relationship to you and that there is no obligation for repayment of the gift.To be safe you may want to check with an accountant to see if there will be any tax liability for either one of you.I only lend in New Mexico
I was being a bit snarky there, but referring to the 'boiler-room' mentality of working with a large, national clearinghouse like that. The experience of my clients who've used this type of lender before are that they seem to be more interested in getting the deal than with providing any real customer service. I feel that their fees are much higher than what a good, local mortgage bank can offer for a similar interest rate, IMHO.
Since there is a settlement date on your purchase contract most lenders will priortize these transactions over refinances to ensure they close on time. If you go beyond this date, whether because of lender delays or not, there will need to be new date agreed upon in writing and provided to your lender.Is your rate locked? When does that expire?There could be a few reasons for the delay, some legitimate and some not. Legit reasons could be that they are busy working through their stack of loans or, (if you are working with a bank), they need to sell some loans in order to replentish their credit line so they can fund more loans. A non-legit reason for the delay could be that (if you locked your loan) they really didn't lock it and now can't deliver the rate promised.If you can't get a straight answer from your loan officer, go up the ladder to his/her sales manager or supervisor. You need to be informed as there is a legal contract beteween you and the seller to close by a specific date. If you are working with a Realtor, ask them for help as well.
Hopefully you are locked and everyone is too busy to tell you.If not, then in addition to Kenton's advice, once you get the LO's manager on the phone you should threaten to report them to your state's attorney general for dereliction of duty. Your unanswered requests to lock should help your case. I would scream for his commission to go toward buying down your rate as well.
Lot's of good commentary here wimberlyz. Here's my 2 cents worth....The interest rates you see quoted by lenders are based on the yields of Mortgage Backed Securities, or MBS, that are traded in the bond market. These traders are very averse to any news that indicate even a hint of inflation. So pretty much any news that shows the economy is rebounding will make MBS yields and mortgage rates increase.The rule of thumb is:Good economic news = bad for ratesBad economic news = good for ratesEven bad economic news can be interpreted as 'good' if it is better than expected. So, for rates to get better we need to see worse than expected figures on areas such as retail sales, industrial production, durable goods orders, CPI, PPI, housing starts, non-farm payrolls et.al. The trend lately has been for better than expected news with pockets of downright good news.On top of this, the FED has been (and presumably will continue) buying treasury securities at the weekly auctions. This is a 2 sided coin. While creating demand (albeit artificial) pushes the securities price up and yield down in the short term, they are printing money to buy them which is inflationary in the long term.Oil is also a strong inflationary indicator and the fact that it recently settled at over $70/barrel for the first time since November isn't helping.I hope I am wrong, but I don't think we'll see 30 year fixed rates in the 4's for quite some time, IMHO.
I don't know what your loan profile is, (loan amount, loan-to-value, your credit score, etc.) but a rate over 6% sounds high to me unless this is an investment property.15 year loans are fine and as I'm sure you know the rate it a bit better. The downside is you MUST make that higher payment every month. With a 30 year mortgage, you always have the option of making additional principal payments each month so it will payoff in 15 years, but if you have an emergency you can make the minimum payment for a time until you can afford to resume your accelerated schedule.Another thing to keep in mind is that mortgage money is some of the cheapest to borrow. With its deductability, your after-tax rate could be a percent or more below your note rate so ask yourself if you can get a better return on your money in another investment vs. applying it towards your mortgage balance.Other factors to consider are how long you intend to keep the home and do you expect a major change in 15 years, like retirement or moving.
If you want to disagree or offer constructive alternative advice, fine. But petty, childish comments don't belong in the thread.
Bob,I can't belive you would post such a message in a forum where someone is asking for help. It's an insult to them and every other poster. Very unprofessional.