I'm just gonna throw this out there. We are currently renewing a mortgage that comes due on dec 15th. The paperwork has already been with our broker for over a month. We have chosen a new broker based on an ad in their window (2.34% for 3 yrs fixed). You must qualify at the gov't rate to get this which we do. Today we were offered 2.59% for 3 yrs. The lender that offer's the 2.34 rate apparently has a very slow underwriter and we are out of time. That is not my fault, yet we are expected to pay .25 point more for 3 yrs because of it. I am not unhappy with this rate but I somehow feel cheated. Am I making a mountain out of a molehill???
mortgage broker concerns
- Thread starter tailedger
- Start date
- Joined
- Mar 17, 2016
- Messages
- 126
Hi,
Unfortunately, the broker didn’t submit the mortgage immediately and rates changed. The rate hold is set once the mortgage is submitted, it’s not based on the underwriting turnaround time.
We could look at offering 2.49% for 5 years. You should consider variable rates as low as 2.30%. Also, as a REIN member, and looking to invest in the future, you will need a plan. Not all mortgages and/or lenders are a good fit for future growth.
If you wish further advise or additional information, please contact us via email [email protected] or by phone 1.844.411.Vine
Best regards
Vine Group
Unfortunately, the broker didn’t submit the mortgage immediately and rates changed. The rate hold is set once the mortgage is submitted, it’s not based on the underwriting turnaround time.
We could look at offering 2.49% for 5 years. You should consider variable rates as low as 2.30%. Also, as a REIN member, and looking to invest in the future, you will need a plan. Not all mortgages and/or lenders are a good fit for future growth.
If you wish further advise or additional information, please contact us via email [email protected] or by phone 1.844.411.Vine
Best regards
Vine Group
Just so you know, the broker did not submit it immediately because any time a new purchase comes in the door, they take priority and renewals get bumped back, so i am told. Is this generally how it works in the mortgage broker world?
- Joined
- Mar 17, 2016
- Messages
- 126
Hi,
I appreciate that was what you were told, but most lenders underwrite files as they are received. They don’t pick purchases over refinancing or switches. High volume can slow down the response time from the lender, but the interests rate hold period is set the second the application is submitted to the lender.
Best Regards,
Vine Group
I appreciate that was what you were told, but most lenders underwrite files as they are received. They don’t pick purchases over refinancing or switches. High volume can slow down the response time from the lender, but the interests rate hold period is set the second the application is submitted to the lender.
Best Regards,
Vine Group
- Joined
- Oct 22, 2007
- Messages
- 2,803
I agree considering your long-term plan is more important than the interest rate on one mortgage.
If you can get a 2% interest rate with a bank that will do "unlimited" mortgages with investors, or a 3% mortgage with a bank who will only fund clients with 4 doors or less, you may want to consider starting with the latter despite the higher interest rate. If you finance 4 doors with the first bank, that precludes you from ever accessing mortgages with the second bank.
Interest rates are only a piece of the puzzle.
And seriously, we shouldn't be complaining about any mortgage below 3%.
If you can get a 2% interest rate with a bank that will do "unlimited" mortgages with investors, or a 3% mortgage with a bank who will only fund clients with 4 doors or less, you may want to consider starting with the latter despite the higher interest rate. If you finance 4 doors with the first bank, that precludes you from ever accessing mortgages with the second bank.
Interest rates are only a piece of the puzzle.
And seriously, we shouldn't be complaining about any mortgage below 3%.
Just foe the sake of argument, I saw my broker today and I called her out on who is responsible for taking purchases as a priority and bumping everyone else, the lender or the broker, she said both are, so your words may be true where you live but clearly not in my neck of the woods. Just sayin.
- Joined
- Mar 17, 2016
- Messages
- 126
Hi,
Lenders hold their rates based on the date they receive the file.
Best Regards,
Vine Group
Lenders hold their rates based on the date they receive the file.
Best Regards,
Vine Group
- Joined
- Aug 30, 2007
- Messages
- 13,881
Mortgage brokers, like lawyers, accountants, bankers or plumbers are human. Humans prioritize in life. Some files get priority (due to size, or ease of getting a loan) and others are more complex, or the paperwork submitted is sloppy or it is tougher to get a loan.
Thank you for acknowledging that this does actually happen, as it turns out, I would never have received the rate in the window (2.34% for 3 yrs) as this is pretty much reserved for those that don't have the 20% down payment, mostly 1st time buyers. I did wind up with a rate well under 3% so I am happy with that. As others have commented, anything under 3% is good and I agree.