hard-to-believe low interest rates in Utah??

hard-to-believe low interest rates in Utah??

Real Estate Agent · Member since 2019 · 16 posts · 5 votes

Hi, I just happened across Associated Mortgages in the Salt Lake City area of Utah. They have interest rates for 30 year conventional mortgages at 3.75% right now, March 9, 2019. This seems exceptionally low. Has anyone heard of them? According to their website they've been in business since 1989 and seemed legit when I met them in person today. I believe they only have 2 or 3 employees, so a very small outfit with no overhead -I assume that's how they are keeping their costs low? Has anyone heard of them? What advice do you have for working with such a small mortgage company? Thanks!

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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
7y
Originally posted by @Mercedes Smith:

Hi, I just happened across Associated Mortgages in the Salt Lake City area of Utah. They have interest rates for 30 year conventional mortgages at 3.75% right now, March 9, 2019. This seems exceptionally low. Has anyone heard of them? According to their website they've been in business since 1989 and seemed legit when I met them in person today. I believe they only have 2 or 3 employees, so a very small outfit with no overhead -I assume that's how they are keeping their costs low? Has anyone heard of them? What advice do you have for working with such a small mortgage company? Thanks!

 All lenders are at 3.75% right now. All lenders are also at 3.5% and 5%. That alone isn't useful. What are the fees/points? The largest mortgage bank in the United States routinely advertises a rate with 2 discount points (hidden in the very small print) on top of 25% down for an owner occupant (also in the very small print), which is literally $10,000 in upfront fees on a $500k loan to get that rate they advertise. Fixed rate? Down payment? Loan amount? Etc. 

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  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    7y
    Originally posted by @Mercedes Smith:

    Hi, I just happened across Associated Mortgages in the Salt Lake City area of Utah. They have interest rates for 30 year conventional mortgages at 3.75% right now, March 9, 2019. This seems exceptionally low. Has anyone heard of them? According to their website they've been in business since 1989 and seemed legit when I met them in person today. I believe they only have 2 or 3 employees, so a very small outfit with no overhead -I assume that's how they are keeping their costs low? Has anyone heard of them? What advice do you have for working with such a small mortgage company? Thanks!

     All lenders are at 3.75% right now. All lenders are also at 3.5% and 5%. That alone isn't useful. What are the fees/points? The largest mortgage bank in the United States routinely advertises a rate with 2 discount points (hidden in the very small print) on top of 25% down for an owner occupant (also in the very small print), which is literally $10,000 in upfront fees on a $500k loan to get that rate they advertise. Fixed rate? Down payment? Loan amount? Etc. 

  • Real Estate Agent · Salt Lake City, UT · Member since 2018 · 247 posts · 247 votes
    7y

    I would also ask if you’ll be paying any discount points. 

  • Real Estate Agent · Member since 2019 · 16 posts · 5 votes
    7y

    I'll have to get more information as this was just a quick conversation in passing today. We talked about a refi on a $679,000 single family primary residence with 20% down and 30 year fixed. There would be no fees, he would pay for appraisal and there would be no closing costs, and I believe the rate was going to be 4%, assuming excellent credit -I have to check back on all the exact numbers on Monday. 

    I was mostly wondering if anyone has used or heard of Associated Mortgage in Utah and could recommend.

  • Developer · Holladay · Member since 2019 · 64 posts · 36 votes
    7y

    Please update your findings as soon as you know something. I would be interested in what comes of this as well.

  • Real Estate Agent · Member since 2019 · 16 posts · 5 votes
    7y

    Alright, I have the full story, I spoke with Arni at Associated Mortgage in Utah today. For a "high balance conforming" 30-year fixed the rate with no costs is 4.375%. 

    Exact numbers: 

    $680,000 purchase price/value

    20% down

    Loan of $544,000 single family primary residence for absolutely no costs (no points, no appraisals fees, no closing costs, literally zero cost to me whatsoever), the rate today is 4.375%. 

    If you want to pay closing costs the rate is 3.75% today, no points. Cash-out refi is 4.5%. They tell me they can do this because their overhead is so low, they don't advertise, etc. Anyway, they insist they offer the best deal in town, so if anyone knows of a better rate with no fees, please pass it along. 

  • Developer · Holladay · Member since 2019 · 64 posts · 36 votes
    7y

    What are you closing costs? fixed or percentage base?. Unless they are outlandish I can imagine not paying for those wouldn't be beneficial to save 5/8 of a point.

  • Real Estate Agent · Member since 2019 · 16 posts · 5 votes
    7y

    On approx 500K loan closing costs would be 12K, so for me it doesn't make sense to pay the costs unless you think rates won't go any lower for the next 3.5 years. Call Assoc Mortgage (talk to Arni not Morgan) and see what they have to say. They think mortgage rates will fall more in the coming years.

  • Real Estate Agent · Salt Lake City, UT · Member since 2014 · 473 posts · 230 votes
    7y

    Interesting, I've always been wary of these lenders that offer no closing costs with decent rates. But maybe I have nothing to worry about? @Mercedes Smith Have you continued to move forward with the process?

  • Real Estate Agent · Member since 2019 · 16 posts · 5 votes
    7y

    Yes, I'm refinancing with them right now. Call them up and see how you feel. Talk to one of the older gentlemen (Arni, not Morgan).

  • Real Estate Agent · Salt Lake City, UT · Member since 2014 · 473 posts · 230 votes
    7y

    @Mercedes Smith Thanks for the info! Is this owner occupied, or a rental?

  • Real Estate Agent · Member since 2019 · 16 posts · 5 votes
    7y

    This particular case is for owner occupied. They insist they have the lowest rates in Utah for rental properties as well.

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