Question by loks: how can I negotiate to lower my interest rate for a home loan with the loan officer?
what can I say for him to lower my apr for a loan? this is my first time applying for a loan and do not have experience negotiating to lower my APR any advise?
also he told me he can lower my apr by buying points
any help from anybody out there is appreciated.
he told me 6.5 is the best I can get but I can buy points to lower
I live in the state of texas is this the average APR? people with good credit? also FHA loans he told me I have to have the PIM
for the mortgage for the life of the loan? I was told once you reached 20% percent ownership you can get rid of it but he told me no because it was an FHA loan is this true?
Best answer:
Answer by DirectLendingPlanet
the best way to get what you want is to look elseware if he refuses to match your best offer go with the best one!
find anouther broker he is not being truthful or he is totaly incompentant Anyone with a little expirance would know this fact Its on the brokers test i am guessing yoru broker is not licansed! yes if you have PMI once you have 20% equity in your home it goes away! he is trying you get you in a loan where he makes the most money.
tell him you are going with anouther broker who got you 6% and no pmi he will either come down on the rte and fees if he doesnt look elesware. ask for a good faith estimate and see what you apr is that will tell you if he’s over charging you.
also look at the lender fees. It is in your best interest to shop around if you know your scores talk to a few people and see what they offer.
if your scores are above 660 your not getting a good deal !
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You can search around for a different lender who might offer a more attractive rate for you without buying down points. You don’t indicate your credit score rating here, so it’s not possible to say whether you’re paying too much or not.
Relative to the PMI on a FHA loan, he is mostly correct. You must pay for the life of the loan, UNLESS you paid an upfront MIP premium at loan origination, and have reached a threshold of 78% of the original purchase price (not current value). In any event, you must pay PMI for at least five years into the loan. For the full story, read the supplied URL.
Beware the mtg broker!! Generally speaking theyre sleaze ball blood suckers. Dig this, they get rewarded for sticking you with a higher interest rate!! did u know that.? Its like the health insurance industry, the more they screw you the bigger their year end bonus.!! (6.5 sound kind of high on its face)
First check your credit score if you have over 700 you’re in the drivers seat… Next go online to bankrate.com or some such and check the retail cost of loans in your area. verify what it costs you, APR, with a point or w/out points. Notice that by checking online youre comparing a retail cost vs. the “wholesale” cost that the mortgae broker gets charged for originating the same loan. The difference he tries to stick in his pocket, at your expense!! (sleazzzy)
Next dont let him stick you with “junk fees”, so called warehousing, application fees etc are bunk. even the processing fees and underwriting fees go into that sleazy agents pocket. The only legit fees are those that go to “outside providers” that help you close your loan ie: appraiser, escrow/settlement, title insurance, notary, messenger etc.
Next dont begrude him a resonable fee cuz he’s got overhead to cover as well, but niether should he try to screw you cuz youre uninformed!!!!
You got a couple decent answers already but I wanted to chime in and say the only way to know you’re getting a fair deal is to go to another broker and have them quote your loan.
Tell them upfront they are the second person you’re talking to so they know they have to offer you their best deal.
At that point, I’d give the first guy a chance to match, If not, go with the second one.
Brokers expect you to shop the rates. It’s a huge purchase! Good luck.