That a more or less market quote today. Nothing special.
This comment applies to fixed rate loans only.For what it's worth, I think float downs are overrated for most applicants, assuming they are doing 30 to 45 day locks. If you could get an otherwise competitive rate and a float down, sure, but what usually happens is that you end up with a less that optimum initial quote and a float down that only rarely comes into play, and even if it does will rarely get you as low as you could have gotten if you had just done to the best deal in the first place.I'm a broker, and have no axe to grind either way. I get paid the same whether I use a float down lender or not.
In context, it looks to me like that is exactly what he is trying to do. It will be interesting to see if Zillow lets him continue to do so.
The caption shows his name, his company and his position, just like the other three people. I don't see anything to get too excited about, although admittedly it can be confusing at first glance.A lot would depend on context- is he using the photo to represent himself as something special at Zillow?
A lot depends on the kind of financing you are looking for. If it's an uncomplicated deal and all your quotes are clustering within a quarter point or so, you have probably figured out the market after half a dozen, maybe less. A more complicated situation may take more data to feel comfortable.One thing to consider is when you get the quotes. It's 12:12 PM as I write this, and I am on my third price of the day. If you find that all of a sudden you are getting better deals, it's probably because the market has improved, not because you have found a better group of lenders.I would certainly look at both brokers and lenders. If the deal is straightforward, a well rated non-local lender can be fine. If it's a purchase or a complicated deal, I would be more inclined to work locally.
We would have to see the paperwork to be sure, but here's nothing automatically wrong with what you are describing. We do much the same thing, offering credits in escrow which can cover part or all of a borrower's expenses. We still have to show the expenses on the debit side since they are actually being paid, but we offer as a credit whatever amount we have agreed upon. As long as the net cost is what they said it woudl be, they are likely doing nothing wrong.
For me, the difference between a 30 and 45 day lock is 1/8 of a point in fee in my cost- rounding error on my quote. I usually recommend locking purchase transactions at application. Rates can go up a lot faster than they can go down.
No one knows what rates will be this afternoon, much less a month from now. I do know that rates can go up much faster than they go down. My usual advice is to look at the big picture. If it's the right house, it's the deal that's important, not micromanaging the rate lock process (which you can't do anyway). If the numbers make sense, lock them now and move on to other more important things.Good luck.Tom O
vak-The Bloomberg site is a measure of MBS pricing, not of retail loan rates. The best way to use it is to benchmark a specific quote to the value at that same moment, then look at it as a relative indicator. In other words, if the value on the site changes by X percent, you can expect your quote to change by the same amount.For example, my best deal today for a 30-year loan was 5.25% at zero points. The index opened at 4.6%. That tells me that if I add about 5/8% to the index value going forward I can estimate what my rate would be. You can also tell from the changes during the day that we had both a rate increase and a rate decrease, ending unchanged on the day.
http://www.bloomberg.com/apps/cbuilder?ticker1=MTGEFNCL:INDClick the 1D tab for intraday pricing. 15 minutes behind real time for free.