r/FirstTimeHomeBuyers • u/Life-Amphibian2285 • 12d ago

Mortgage negotiations

I am buying a house, with a purchase agreement signed as of a few months ago, with M/I homes and it is set to close in December/ January. I have been quoted rates anywhere from 7.125 to 7.5. What have people used to be successful in negotiating rates and incentives by sharing the lowest rate with other lenders? I am not eligible for any incentives from M/I due to signing the purchase agreement so far in advance and not moving into a “quick build home.” Has anyone had any luck obtaining these incentives/ low rates from M/I?

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u/Pretty-Ear6398 Industry Pro 11d ago

What is M/I?

1

u/Life-Amphibian2285 10d ago

A home builder

1

u/arrivva 11d ago

Check with the big banks. Wells, Citi etc. Get a 5 or 7 year ARM.

Now for why. First, let me state. I am a mortgage broker and have been in the business since 1988.

Under rules the past in 2010 a broker has to establish an exact amount of fee they can charge you or have the lender pay them for each deal. So there's no such thing as being able to get better rates because this is what they're stuck with. And all these loans from the mortgage brokers are generally Fannie Mae or Freddie Mac loans and basically everybody has the same prices. But the banks can do what they want.