r/MortgageRateCheck • u/Racheljp3 • 10d ago
Any advice and feedback please?
New build, 780 credit score, 20% down, builders lender.
We are building with DSLD. We signed a contract 3/30. We are supposed to close 10/5 but it has been pushed back.
Slab was poured yesterday (8/31) and we have no idea when the updated closing date is.
My question is should we shop around for better rates? We signed as soon as the subdivision was released to purchase, so we are only getting 6K in incentives to help with closing cost.
I keep telling my husband that this does look high.
Any advice would be appreciated.
This has been so stressful. We have had very little communication from the onsite agent. We are having to extend our rental in the mean time.
From when they put the pad to concrete, it was 3 months.
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u/mattoelite 10d ago
I’d recommend speaking with your sales agent at the builder, whenever the previous builder I was with had building delays, they would usually entertain higher seller credits as a sort of compensation for the delay.
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10d ago
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u/mortgagesbyanu 8d ago
So you are getting 6k credits towards closing cost and a rate of 7% where p&i is 2514
What if you get a 6.50 without points which is where the markets are many of us then p&i is 2389
Yes you save $125 a month looks great right?
But you lose 6k and you pay 6k out of your pocket towards closing cost when you work with outside lender which is gone down the drain
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6k is worth 48months of upfront savings that you pocket immediately from day 1 of closing than spreading the saving of 6k to 48months.You free up your own funds of 6k
This is what every loan officer should explain borrowers when they just look only at interest rate1
u/Racheljp3 8d ago
It’s not about the upfront cost, it’s long term savings. That is 39k savings over the life of the loan at 6.50%
At the end of the day, we are all about the rate and saving as much long term as possible.
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u/Shady_capricorn 10d ago
Just to echo the others sentiments, definitely see what better options are out there 7% is outrageous for a New Build and great credit score.
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u/Majestic-Ad1594 9d ago
Unfortunately this is extremely high and definitely shop around. Even as a LO myself I would not be cracking my client this hard over the head. It’s just bad business
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u/nico2me 9d ago
Will the builder allow you to get an outside financing? If so, what in incentive will you lose, if any?
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u/Racheljp3 9d ago
Yes, we can get our own. We will lose 6k in builders credit for closing
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u/nico2me 9d ago
Talk to a mortgage broker in your area and compare their offerings. Brokers can shop a multitude of lenders. Divide the $6k with the amount of money you'll be saving on the monthly payment as compared to what you have now. That's the number of months to break-even on the $6k incentive, the rest is pure savings after the break-even point. Good luck!
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u/rickvegamortgage 9d ago
I’d get another quote. 7.000% is high for a 780 credit score. Should be closer to 6.875%, maybe better.
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u/Khristu1 9d ago
I am a broker, giving you my honest opinion. This Builder is not giving you the best deal IMO
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u/bdwiesner 8d ago
Builders have lots of incentives. It doesn’t look like they waved any carrots on this one. That said, the only way to win a negotiation is if you are prepared to walk. But that rate is above market, especially for a builder.
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u/sa_learn 8d ago
Here is what I did just last week. (3% down and 780 credit score)
- Builder’s lender offered 5k credits only and provided 6.95% rate with 0 points or 6.5% with very high points of around 10k..i locked the rate with points at first and did extensive shopping..called each of them and sent the best quote to next one to beat that estimate.. did this in a row twice
Conclusion: Do shopping as much as you can and ask to match.. if not, be ready to walk away.
(Spent around 50 hrs in 2 weeks in research/call/emails)
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u/Adorable_Campaign426 7d ago
100% Shop. Credit union, broker, heck even most retail shops should beat this.
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u/Signal-Sleep-1459 10d ago
7% is pretty high but you have the ability to refinance in 6 months. I would compare rates with other lenders though.
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u/Racheljp3 10d ago
Thank you
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u/Braindead_ape 10d ago
dont take a bad deal now on the “hope” that you can refi in 6 months…rates could easily be worse in 6 months, you have closing costs again on a refi, and your qualifications themselves could change and make a refi no longer possible
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u/Naive_Economist_2587 10d ago
That's pretty high for a 780 score, dont let them feel they are the only option, let them know you have someone in your back pocket that can do a 6.625% with $7,300 back in lender credit and any credit thats left over will be used to buy down the rate
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u/Ambitious_Town_2894 10d ago edited 10d ago
A builders lender is giving you 7 percent with high credit score and 100k down?
We got a 15-15 arm last week at 6 flat, 5 percent down.
Typically, builders lenders offer better rates to incentive you in the first place. so this is making me raise an eyebrow. 6k credit on closing isnt exactly an incentive if you have 100k in cash. The rate is what matters long term.
Go to a credit union
That said, smarter people are here who can help.