Mortgage Blog

Here is the email I got today:
I always thought your rates were very
competitive, so I didn't ask around.
But when I did ask around, it turned out
your rates are almost the same as BOA, and
another broker offers 3% for 5/1 ARM and
3.375% for 7/1 ARM even my house is a condo.
So I think I'll go for that

Here is my reply:
Please go for it. You can tell the differnce
later on.

1)You may have appraisal value issue. The value
for condos are lower now. From my estimates,
it's around 80% to 85% LTV.

2)Even if the value is ok, Fannie Mae charges
0.75% points for LTV over 75%. This broker
seems like "forgot" this 0.75% points and he
will tell you later that he was sorry to quote
a wrong rates.