February 24th, 2011 11:44 AM by Eric Fang
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 valuefor condos are lower now. From my estimates,it's around 80% to 85% LTV.
2)Even if the value is ok, Fannie Mae charges0.75% 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 quotea wrong rates.