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Discussion Starter · #1 ·
Quicken Loans just offered me 4.375% on a 10 year conformiming loan.

What is a conforming loan?
 

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Discussion Starter · #5 ·

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Quicken Loans just offered me 4.375% on a 10 year conformiming loan.

What is a conforming loan?
A conforming 10 year due in 10 is around 4.375% today so that is a good rate.

Conforming loan is a loan that follows goverment subsidies guidelines such as Fannie Mae or Freddie Mac.
 

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Discussion Starter · #7 ·
A conforming 10 year due in 10 is around 4.375% today so that is a good rate.

Conforming loan is a loan that follows goverment subsidies guidelines such as Fannie Mae or Freddie Mac.
So i'm guessing that is a good thing!:)hand
 

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Interest Only I'm assuming you meant..........I hope not!

I haven't signed nothing yet.
Will it be paid off in 10 years?
 

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Yes in 10 years or less............I'm guessing less!
That's a good rate, currently I am doing the same thing except mine is 4.125% 5/1 ARM. Fixed for 5 years at 4.125% and then it goes to whatever the current rate is plus a percentage.

One thing to look at it the "cap" of the loan. This determines the maximum you will be at if interest rates sky rocket (which they probably will being the economy and our current economic conditions)

The max mine will go to is 7.244%, even if rates are at 15%, but my house will be just about paid for by then so I really am not worried about it.
 

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Discussion Starter · #11 ·
That's a good rate, currently I am doing the same thing except mine is 4.125% 5/1 ARM. Fixed for 5 years at 4.125% and then it goes to whatever the current rate is plus a percentage.

One thing to look at it the "cap" of the loan. This determines the maximum you will be at if interest rates sky rocket (which they probably will being the economy and our current economic conditions)

The max mine will go to is 7.244%, even if rates are at 15%, but my house will be just about paid for by then so I really am not worried about it.
I'm being told this is a fixed rate for 10 years..........am I missing something?
 

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I'm being told this is a fixed rate for 10 years..........am I missing something?
You are coorect, its a 10 year fixed, due in 10. The other person was confusing your loan with a 5/1 arm. With the last few years most people arent used to someone getting a 10 year term, and are more used to hearing terms like a 10/1arm.

You are getting a good deal, as long as the rates on the front arent too high, but they also must pass a section32 test to ensure that your not getting highjacked in comparrison to your current situation.
 

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Discussion Starter · #13 ·
You are coorect, its a 10 year fixed, due in 10. The other person was confusing your loan with a 5/1 arm. With the last few years most people arent used to someone getting a 10 year term, and are more used to hearing terms like a 10/1arm.

You are getting a good deal, as long as the rates on the front arent too high, but they also must pass a section32 test to ensure that your not getting highjacked in comparrison to your current situation.
Thanx...........I'm paying 7/8 of a point.
 

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Thanx...........I'm paying 7/8 of a point.
Anything less than a point on the front is very reasonable. I would say to keep their number, if these guys dont give you the run around in collecting conditions, they seem like they are a decent broker to work with.

Working for Lehman I would see many brokers that were consistantly charging 3pts on the front and then another 1.5-3 on the back, along with processing fees (most 799), notary fees(most 125) etc. Given a 300k loan, it wasnt uncommon for us to intercept loans that the broker was making 19k on one loan! (option arms were making up to 5pts in the back) 25k per loan!
 
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