My fiance and I are closing on our first house later this week, which made last week's news about the "biggest rate drop in a decade" very exciting (http://www.freddiemac.com/pmms/). I was hoping it was something we could take advantage of at the 11th hour.
However, my mortgage broker quickly squashed that. In her reply when I reached out to her last week with that Freddie Mac article, she said that recent drop had already been factored in when we were locked at 4.5%. She said these reported rates are deceptive and skewed by loans with large numbers of discount points, and implied it was really too late to do anything at this point anyway.
The comment about discount points seems off, because it looks like the Freddie Mac averages account for discount points (0.5 for the 30 yr fixed). Rule of thumb I have heard is a single point translates to about a 1/4 of a %, so that math doesn't seem right. I'm honestly not sure about whether its too late to do make a change; we've definitely had to send a lot of paperwork over so i could see how that would be a lot to rework through in a couple of days. Not sure if this is also impacted by the fact that she would have to go back to the bank and secure the new rate, which she has mentioned costs her $ (might not be something she wants to do again).
I'd greatly appreciate anyone's feedback on our situation and what options we might still have. Even if the consensus is our broker is spot on, that would provide some piece of mind. Thanks in advance.
Other mortgage details in case they matter:
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Loan type: conventional, 30 yr fixed
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No points
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20% down
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Credit scores: fiance and I are both 780+
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Location: Texas
TL:DR - Big mortgage rate drop last week; mortgage broker says we can't take advantage.
Edit for formatting.
Submitted April 01, 2019 at 11:37AM by BrokeYoeman https://ift.tt/2FGOYe3
