The cheapest mortgage REALLY
Posted by Frugal on March 9th, 2007
A couple of months ago, Absolute Mortgage was offering really cheap purchase mortgage at the rate of 0.25% to 0.375% lower than MOST cheapest companies offered on the bankrate.com. It was so amazingly cheap that now it’s not available anymore. I guess they are done with enough “publicity” from bankrate.com. They no longer advertise their rate there, but also adjusted their rates to be about 1/8 % cheaper than the lowest ones at bankrate.com. Great deals don’t last forever. The rates advertised on their site are only for purchase. Refinanced terms may be 1/8 % higher, depending on the borrower’s qualification.
Well, if you are purchasing/refinancing, it doesn’t hurt to check Absolute Mortgage out.
Here is the comparison of two internet mortgage companies that I’ve found to be the most economical:
Click here for the current rate at Mortgage Capital.com:
Both are zero points, $1250 lender’s fee.
Click here for the current rate at Absolute Mortgage:
Both are 0.125 points, $399 lender’s fee (lower interest and/or lower fees). When you make a loan as big as 680K (exceeding conventional conforming loan of $417K already), the 0.125 point will cost you more fees compared to MtgCapital. Therefore, Absolute Mortgage should be cheaper in all cases.
The above rates are quoted when 10 year treasury yield was at 4.509% and 30 year treasury was at 4.65%
Best luck. And if you can find a better rate, or you can beat this fixed rate on a zero point, fee ~ $1000 (and preferably less than $700), please don’t hesitate to leave a comment here.
Posted by “Frugal” at My 1st Million At 33.com
More related posts:
Digg it Del.icio.us Reddit Furl BlinkList Newsvine Yahoo MyWeb
March 10th, 2007 at 8:28 am
As of March 12, 2007, Countrywide will no longer offer no money loans. We can expect others to follow suit. Also it sounds like Countrywide will be curbing in on those 5% down loans as well.
http://money.cnn.com/2007/03/09/real_estate/countrywide.reut/index.htm?section=money_latest
March 13th, 2007 at 10:23 pm
This is an excellent tip, Frugal. Thank you so much!
I’ve looked everywhere and Absolute Mortgage has the lowest offerings… way way better than some of those who claim they are the lowest around- when comparing apples-to-apples.
I will be monitoring them for a bit, since some companies only demonstrate low rates for a while and jack them back up later.
March 15th, 2007 at 12:27 am
JC,
The door for refinancing is closing as you have said.
March 15th, 2007 at 12:28 am
Mike,
Glad to help.
April 1st, 2007 at 5:53 pm
The only problem with Absolute is that you have to purchase in CA.
April 3rd, 2007 at 1:39 am
Jay,
Hmm. That is too bad indeed.
Frugal
January 28th, 2008 at 3:44 pm
“Well, if you are purchasing/refinancing, it doesn’t hurt to check Absolute Mortgage out.”
After you purchase and before you elect to refinance you should investigate the benefits of using a Home Equity Line of Credit (HELOC) as an “interest cancellation” account. You’ll be able to accelerate the equity in your home and potentially save tens or even hundreds of thousands of dollars in amortized interest.
Equity acceleration may seem problematic.
Today’s Real Estate market means that folks can no longer count on appreciation to build home equity. Those who realize that they need to pay down their current mortgage debt are looking for alternate ways to aggressively (yet safely) build equity.
And they’ve discovered a perfect online system to do that; they can focus on their wealth accumulation goals while accelerating their equity simply by using a Home Equity Line of Credit to ‘power’ the Money Merge Account™ financial solutions program.
A typical 30 year loan (of whatever type) can be paid down in 1/3 to 1/2 the time — it’s a great way to save *huge* amounts of income by eliminating a mortgage amortization front-end interest load. (On a million-plus dollar home, I’ve personally seen where the Money Merge Account™ program will save the homeowner $750,000 in interest charges!)
And the best thing – homeowners don’t have to refinance their existing mortgage or, in most cases, make any adjustments to their lifestyle.
It is unfortunate that most of us were never taught to follow three essential principles: (1) Avoid paying interest, whenever possible, (2) Use other people’s money, whenever possible and (3) Find and use a financial system that will guide you, especially if you have the tendency to go off-track. The Money Merge Account™ software and the program’s counselors use these principles to keep each homeowner focused on their wealth accumulation goals.
I’d be happy to provide further details…
March 7th, 2008 at 12:37 pm
Absolute Mortgage often has the same rate for refinances as purchases. Another site is- http://www.Shoprate.com
Bankrate only has people on until they get ‘clicked off’ because they charge the advertiser per click.
July 3rd, 2009 at 10:23 pm
I searched everywhere and have the absolute lowest mortgage offer so … much better than some who claim to be the lowest-around to compare apples to apples.really well written. You should post more about this.