Today is officially 30 days out, and we locked in our interest rate at 4% with a 1.375% credit towards closing. I think the $0 (Nothing towards closing, no cost to get rate) rate was 3.75% but cash towards closing today has a lot more value to me.
Here was how I justified going with a higher rate. The monthly payment difference between the 2 rates ends up being about $35/month, so I am paying more to get that 1.375% off my closing costs -- but it will take 10.25 years of $35/month to reach the break even point, and if you factor in the future value of that money with 10 years of compounding interest that stretches it out to 12 years. So if we stay in this house (actually this mortgage...) for more than 12 years then we would have been better off with the lower rate, but up until that point we are winning. Plus my stress level of bringing less to closing is priceless.
Second great thing today -- NVRM loan officer changed our prepaid PMI policy to a different vendor based on our credit scores and we saved almost $1200 on this charge.
Honestly, this is the first time I felt NVRM rewarded us for having good credit -- through the rest of the process I was starting to feel like they were suspicious of everything we provided and were convinced we were a credit risk, despite not being one at all. The level of documentation they require is borderline insulting, but maybe every mortgage company is like this now. It has been almost 5 years since I have been through the process, but I remember it being a breeze the first 2 times. Credit Check, 2 paystubs, a W2 or so, and you were good to go.
3rd Thing -- and I didn't even think about this one, but when you close (varies from state to state and county to county) in Montgomery County ohio the seller (NVR) owes the buyer (Me) a prorated amount of real estate taxes. My rough calculation is $8.44 / day since January 1st until closing. I knew I owed this to the buyer of my new home, but never thought of the reverse. Loan officer brought it up, and says it might chop as much as another $1200 off the amount due at closing.
Montgomery county uses the SHORT method of proration, which can be confusing (http://www.daytonmortgagebankers.com/consumers/taxproration.html for more info)
Lastly, I stopped over hoping to see some siding but there still is no siding -- but the hard wood floors are going in, Thankfully I still like the color we picked 5 months ago.