Wednesday, June 8, 2011

Good News on Rates!

We got our mortgage approval today.  Besides the few mistakes the broker made on the initial application paperwork, the process was easy.  He hasn't come back for any other information (yet).  I think we did a pretty good job of documenting our accounts, our credit is good and we've got enough liquid assets in the bank to cover the down payments - I'm sure all of these things helped the process along.  It wasn't quite so easy the first time I got a mortgage; though, come to think about it, maybe it was.  I only had one bank account then, no investments and no retirement account.  When you've got nothing, documenting it usually ain't that difficult.  :)

But, I digress.

The REAL reason for this post is that the broker told us the NVR rate is now 4.5%!

Yup.  4.5%!


Its no 4.25% like Noey got to lock in, but its definitely headed in the right direction.

With the economy still in the crapper, unemployment rates soaring and the debt ceiling debate in DC, I expect the rate to remain at that level or lower at least through the summer.  With any luck, we'll get to lock in before it goes up.  And you all too!


  1. That is a great rate!! =) And market speculation is that it will remain or drop the next month or so. I'll cross my fingers it drops for you! My realtor couldn't believe our rate either! She got that on her 15 yr mortgage. lol

    This is all very exciting!! Our LO kept coming to us to give a lot of info and paperwork before she sent it to processing and underwriting. So when it FINALLY went to underwriting, it took NO TIME!! In fact, we didn't even know it had finally gone to underwriting. As of Friday, it was still in processing. =) The only thing they need is a credit inquiry letter. I have NO idea what that is, but our LO said to call her and she'd tell us! So tomorrow, we get to call her and our landlords. =)

    So excited for you!! Congrats on the approval!! It was a good day to get those! lol

  2. Congrats on your loan approval! The credit inquiry letter is to explain who and why has looked at your report. We had to do one as well and most of them I had no idea who they were. What I did was list them and write the reason for the ones I knew and no knowledge for the ones I didn't.

    As far as the rate goes 4.5% is a great rate! We looked at 4.5...I would have LOVED 4.25% BUT the thing to remember is that the rates are different for every lender. WF, BOA and NVR can all give you different rates for the same loan amount; it all depends on their comfort and willingness to take the risk with you as a borrower.

    Reading the last two post kind of reminds me of the Oprah give a way shows with the cars but instead with home loans…you get a loan…you get a loan…everybody gets a loan. LOL! Corny I know…lol

  3. Congratulations! That's great news :) I am praying that we get to lock in at the highest 4.50%...I would LOVE 4.25% but we will see how things are in late July/August. I'll keep my fingers crossed for all of us who are closing later on in the summer!!

  4. That is a good rate! We got 4.875% we know if we held out longer it would have gone lower. I just wanted to go below 5% and I just wanted it out of my head. I hate being stressed and watching the rates constantly. 4.5% is an awesome rate. Congrats.

  5. Here is what is on:

    as of yesterday:

    After taking a brief breather early in the week, home loan borrowing costs have resumed their rally. With today's loan pricing improvements, conventional 30-year fixed mortgage rates are teetering on another shift lower in "Best Execution".

    CURRENT MARKET: The "Best Execution" conventional 30-year fixed mortgage rate is 4.50%. Aggressive 4.375% quotes have been reported but may involve increased closing costs in the form of origination fees. This could be worth it to applicants who plan to keep their new mortgage outstanding for long enough to breakeven on the extra upfront costs. On FHA/VA 30 year fixed "Best Execution" is 4.25%. 15 year fixed conventional loans are best priced at 3.75%. Five year ARMs are best priced at 3.125% but the ARM market is more stratified and there is more variation in what will be "Best-Execution" depending on your individual scenario.

    GUIDANCE: With "The Wall" now torn down a path has been paved for mortgage rates to continue on the path toward more improvements. An extended rally will not come without setbacks though. Short-term corrections are to be expected along the way. That means borrowers working on a shorter lock/float timeline should remain defensive. Your main goal is to protect new, lower rate quotes from short-term market fluctuations. The overall bullish trend is still very much in tact though. Intermediate to longer-term scenarios are more than justified in floating.

  6. 4.5% is a great rate on a conventional loan. We should be locking next week.

  7. I have guilt about wishing the rate to go even lower, because I know that means the economy is getting even worse. Wondering whether we should lock in before Congress decides not to raise the debt ceiling, and everything goes haywire, or risk it in case the rate takes a nose dive. Either way, we are in good shape though. My parents had a rate of something like 9%, and I think the rate was 13% or more in the 80's!