Can the mortgage rates be negotiable?

Jun 13, 2019

  1. LeoJohnson
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    LeoJohnson New Member

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    I'm learning a TON about the mortgage game. There's so much that goes on behind the scenes with mortgages being bought/ sold, etc.

    With all this craziness, I just had the thought, are mortgage rates negotiable?

    I've called around a bunch the past couple days shopping for the best rate. I've been quoted several different interest rates for the exact same loan. 2 specific examples are 4.375% and 4.25%.

    So my question is this, are the rates negotiable? What happens if I walk into one of these local banks and tell them that I'll only pay 4%? Do I get laughed out of the bank? Are mortgage originators allowed to adjust rates?

    Also, should I go with the three years fixed rate mortgage or with the variable rates?. Are we going to see a rise in the interest rates anytime soon?
     
  2. fed up
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    fed up Guru

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    Doubt that you can tell your bank what you will pay but that doesn't mean you can't shop lenders to find the best rate. With the economy in the current state I would opt for a 30 or 15 year fixed rate but that is just me hedging my budget options
     
    fed up, Jun 13, 2019
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  3. JeffG
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    JeffG New Member

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    No rates are determined by credit score and loan amount. % you put down etc. Call a mortgage broker - we beat the big banks and rates just dropped to their lowest levels yesterday . Where are you buying?
     
    JeffG, Jun 20, 2019
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  4. jerryrut
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    jerryrut Guru

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    I’ve never found rates to be negotiable, maybe if you deal with a large bank on a multimillion $ loan. You might want to check out Pentagon Federal Credit Union; I went with their 15 year adjustable rate mortgage and they paid $10,000 of my closing costs.
     
    jerryrut, Jun 20, 2019
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  5. JeffG
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    JeffG New Member

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    What was your rate for the 10K nust have been a bond downpayment assistant program otherwise for 10k credit your rate was super high
     
    JeffG, Jun 20, 2019
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  6. jerryrut
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    jerryrut Guru

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    3.625, May, 2017 on new purchase; to get the credit, you have to use one of their affiliate real estate brokers, which is not a problem at all.
     
    jerryrut, Jun 20, 2019
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  7. JeffG
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    JeffG New Member

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    Gotcha what state did u purchase
     
    JeffG, Jun 20, 2019
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  8. jerryrut
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    jerryrut Guru

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    Florida
     
    jerryrut, Jun 20, 2019
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  9. jerryrut
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    jerryrut Guru

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    The rate adjusts after 15 years on a 30 year mortgage, then it’s fixed for the next 15 years.
     
    jerryrut, Jun 20, 2019
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  10. jerryrut
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    jerryrut Guru

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    If you can accurately predict interest rates you’ll pass Buffett and Gates.
     
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