Just curious as to anyone's thoughts regarding mortgages, different finance plans, etc.

For some reason, I was under the impression that it's a bit like gas prices (i.e. not much difference due to it's ties to a greater lender) but I'm probably mistaken.

Does anyone have some good advice for getting the best deals, etc?

Thanks.

You can find everything you need to compare rates with the internet, and you might be able to save yourself half a percent if your credit is good, so over the life of a 30 year, that's real money. There are numerous sites devoted to advising homeowners on mortgages, too. Just don't go near an A.R.M., whatever you do.

If you have an in at a credit union, that is almost always your best deal. People in your family may be able to hook you up.

An ARM may be good for you, actually. If the rate can go up x points every y years, but you're only going to live in the house for a few years, the ARM is usually the best thing to do. If you plan on living here until you die, then the ARM is probably not a good idea.
Do the math, and that will tell you what's right.

I did very well under an ARM because I only lived in my last house for 5 years. All told, it saved me about $50 a month averaged out. That's a lot of cash over 5 years.

-A

For the five years that just passed, you could definitely have worked an ARM to your benefit, but the current rate climate makes them risky, in my opinion.

So what would be considered a great interest rate today?

I can't seem to get a straight answer on this without some company low-balling me and then giving the real figure. Fucking frustrating.

Somewhere in the range of 6.0% to 6.5% for a 30 year fixed. You ought to be able to get a table of Seattle rates using Google or Yahoo.

The interest rate is going to vary based upon several factors:
1) credit score/credit profile
2) loan size- conforming vs. jumbo
3) loan type- fixed rate vs arm and conforming (good credit) vs. subprime (bad credit)
4) How much money you are putting down
5) can you prove how much money you make, etc

There is very little advantage to an arm in the current market. You can find an "a" paper 30 yr fixed conforming loan for about 6.35%- paying no points with a decent down payment of at least 5%. You could probably find a 5 yr. arm at about 6% based on a similar scenario. For me the difference is not great enough to bother going with an arm, but you may only plan to live in the house for 3 years.

There are subtle differences between different lenders in how they treat customers and service your loan. For example- Washington Mutual has been terrible in dealing with escrow accounts, but they usually have very good arm rates. Wells Fargo has great 30 yr. fixed rates, but terrible arm rates.

In my opinion, if you are putting down 20% and have good credit your best bet is to look for the lowest possible 30 yr. fixed rate loan on the internet- try lending tree or some website like that and if the rate seems too good than it probably is. If you are putting down 5% or less in cash you might want to consider talking to several mortgage brokers about your options. A lot of mortgage brokers (I am one) are total crooks that make an obscene amount of money for doing very little work, so ask for referrals from family and friends. Also, ask any broker you are working with a ton of questions and make him or her justify every single charge and don't be afraid to tell a broker that you are looking elsewhere for your loan. Searching for the right loan can really suck.
I hope this helps and good luck in your search.

what they all said:

stay the fuck away from Interest only deals, or Adjustable rates, or anything beyond a simple 30 fixed rate conventional mortgage. You don't want to be one of those who gets squeezed out if the interest rates go higher.

I would not sweat the interest rate too much. If and when rates come down, you can always refinance at a lower rate. And a quarter or half a point here or there shouldn't be a deal killer.

Fuck mortgage brokers. You can do that yourself. Get on the net and look at the big national consumer banks - wells fargo, bank of america, look at the strong regional banks wherever you are. Look at the national internet only banks.

Don't pay points. Only suckers with bad credit pay points. If you have so-so credit, maybe one point. thats it. no more.

Does your state or city have a first time homebuyer program? Are you a veteran or related to one - swinging deals there.

It is a huge pain in the ass, but owning a home is the best thing you can do with your money. and i love the way it feels. "This is MY garage" "This is MY YARD!" "This is MY property" i feel like i'm 8 years old again, telling the little shit from next door to "get off our property or my dad's gonna SUE you!" I had no idea at the time what that all meant.... It sure sounds bad, tho.

I should've added that I'm refinancing my current home.

I'm on an A.R.M. right now and want to get the fuck out.

ASK FOR THE EAR RATE!

The rate will be given to you in the APR rate, which is not the actual rate that you will be paying. Mortgages (in Canada at least) are always interest compounded semi-annually. This means that the rate you will actually be paying (the compounded rate, which is the EAR) is going to be more than the APR rate (simple interest rate) that they will quote you at.

So, long story short, ask for the EAR rate.

Also - try to pay the mortage off as fast as you can.

Ill try to write down some more tips when they come to mind. Im a finance major myself, but just started to get into the world of mortgages.

- Chet