Posted by Mike S. on October 13, 2005 at 14:51:13:
Michael,
As someone who is in the mortgage business and is a bit seasoned, Im going to offer you a little insight that I believe pertains to your scenario.
Theres a few reasons why you may be hitting a wall so to speak. Chances are whoever you were working with, quoted you at a rate that may have been available at the time but never locked in the loan and lost the rate {maybe they just werent quick enough or didnt have all the necessary documentation from you to supply to the lender to lock the rate}
The reason why you’re not getting much resposnse or good customer service is simple, based on the market right now your almost asking a mortgage broker to do your loan for free.
Rates have gone up- thats a fact- and what your asking for is EXTRMEMELY nichely in a lenders eyes, so you’re not going to get A paper cookie cutter pricing.
Here’s the issues with your loan:
No pre-pay {which means the broker gets no money from the bank and has to be paid by you or else they’re doing the loan for free}
Less than 12 months seasoning-which means many A paper lenders may not like the deal and you may have to find an Alt-A/subprime lender
You say no ‘BS fees’ and yes certain broker fees are superfluous- but points/ origination is not. Thats how we earn a living- so whether it comes out of the front end- ie your equity, or the back end/higher rate/pre-pay penalty- no points up front, it has to come from somewhere otherwise its charity work.
I invest myself- and I use an outside broker for my deals and he charges me 2 points per deal [small 100k deals like yours which I feel is fair- due to the amount of work and difficulty of the loan]
So, chances are you can get that rate if you’re willing to pay points up front- but if you think someone, anyone is going to do your loan for free. Its not going to happen.
I priced this loan out just to show you online with the 2nd largest lender ion the country and the bst I found at par {no-pre-pay-no rebate was 6.5% currently}on a 5/1 I/O
If you want someone who returns calls, but is honest and tells it like it is, I can help you- feel free to email me, best of luck.