FNMA Loan

[Peggy]

Just spoke to Federated Mortgage - they're offering a 5.75% 30-year loan with NO discount points, NO origination points and NO pre-payment penalty. This is a "Fanny Mae" loan. I would have to pay for the appraisal and the closing. Is this too good to be true? Am I overlooking something? Oh - and their 15 year rate is 5 3/8%.

[Randy Eaton]

Hello Peggy,

Those are very good rates, the only problem sometimes is how Fanny Mae releases funds. With some sale centers it could be a problem. I would check with your salesperson to see if this lender is ok in regards to how they release funds.

Randall Eaton

[Peggy]

I knew there would be a catch. Thanks.

[rmurray]

No catch...you just might need a construction loan...I hope the originator told you that this was the rate that day...and that rates change as often as 3 times/day...Most banks with this low of rate will not lock the rate for more than 2 weeks...New home construction takes longer than this...In that case the rate is going to be what ever it is the day of closing..

We are closing our customers this week at about 5.85%...All of them were quoted higher when they started their deal....Of course, these folks are all happy...BUT...it could just have well have gone a little higher than their original quote..

What ever...you need to get going...these low rates will not last forever..

[Peggy]

The man I talked to at Federated said that they would lock the loan for 30 days and would extend it a few more if they needed to. And yes, he DID say that the rates changed sometimes as many as 4 times a day, but all the doomsayers I know are saying that we haven't hit rock bottom yet (not that I'm waiting for that day before buying) and, in fact, we're probably going to have a depression. I hope this is just another scare like we had with the Y2K bug.

[David Oxhandler]

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