Two things popped into my mind when you said Oct 1st and 1% for an increase.
1. Loan Level Price Adjustments, will adjust pricing (increase the rate) based on FICO, LTV, Cash-out, etc.
2. Unless the LO is with a broker they may not fully understand or be given the opportunity to price a loan with all the small and critical details. They are generally given a daily price sheet already priced out by management based on the lending institution and what they project in their business model. That projection may also include an internal price increase of 1% starting Oct 1st...for them only. There ya go.
Not all is black and white. Most tend to look at Bank Rate for daily 30 yr fixed, then see things like the .5% FHFA price increase, which by the way, lenders can absorb if they wish for certain periods with pricing specials. So it's best to shop.
It's very easy to price a loan out at +1.0% greater then the fixed rate based on the individual. No one's fault. Even the best borrowers usually get dinged for the state they live in. CA currently has approximately .75% on top of the conventional rate with some wholesalers. FL will have a .75 credit just for living in FL.
That's why it's often best to shop different wholesalers through a broker. They look at each lender's pricing adjustments which change daily.
Not all is linear. As FICOs and LTVs go up and down, pricing adjustments don't always match. There are often unaccounted for blips for whatever reason. The importance is to avoid those pot-holes in pricing. A broker shouldn't be afraid to show you their rate sheets and explain the price adjustments although most customers will glaze over.
Switch up the type of program and all bets are off, as price adjustments may or may not apply.
Still, your LO could be incorrect or given poor or incomplete information. |
