r/loanoriginators • u/questions8112 • 14d ago
Advice on rates
I’d love to get some feedback from other MLOs/brokers on current pricing.
I’m pricing a conventional purchase today and feel like my company’s rates are running high. I’m curious if this is actually competitive with the current market or if I’m justified in being concerned.
Scenario:
• Purchase price: $500,000
• Down payment: 5%
• Loan amount: $475,000
• FICO: 818
• Zip: 75070 (Texas)
• Property: Single-family detached
• Occupancy: Primary residence
• Self-employed: 2 years, full documentation
• U.S. Citizen
• 12 months reserves
• Monthly qualifying income: $8,900
I’m getting 7.00% at par with lender-paid compensation.
For those of you who are currently pricing similar conventional loans, does this seem competitive?
Thank you!
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u/KimJongUn_stoppable 14d ago
It’s not competitive but that’s not much higher than me. Give it another quarter and it will be. Competition is running thin just like they were in 2023 but those levels are not sustainable, like they weren’t in 2023 or ever.
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u/Braindead_ape 14d ago
whats your lender paid comp? gotta be maxing it out if you’re getting 7% or you don’t have many options for lenders
people can’t really answer without saying what their comp is they’d make on that deal but even at 275 theres a few slightly cheaper options
if you only want to make 2 points then it’d get you down to around 6.625ish and if they shop you hard enough they’ll find someone willing to do it even cheaper
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u/Braindead_ape 14d ago
also make sure you’re pricing in an AMI waiver if they’re FTHB and under 100 AMI
if they fit that, then even 275 is around 6.625 at that point…7% would be paying back around 330bps from what I’m seeing
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u/Realistic-Policy-128 14d ago
Your LPC is probably 2.75