NACA interest rates higher than traditonal

[frankysmom]

The rate is 3.5 on NACA’s site and 3.29 as of yesterday as reported by the Washington Post.

I thought NACA’s rates would always be at least .5% lower.

[surpriseninja]

I saw this today too and wondered what was going on. Really throws a wrench in my affordability living in such a high cost area. Hopefully just a case of fluctuation?

[msob24]

Yes, I second this bigly. Have my credit access meeting tomorrow which I think means my rate is going to lock and it’s at 3.5% today. I called around to Valley Bank and Citi whom I was working with before I found NACA and both of my previous loan officers offered much lower rates. 3% and 3.125% respectively. Obviously NACA is still the best program but I was told over and over and over again that NACA rates are ALWAYS lower than traditional banks. I wonder what is going on…. Also if I ‘lock’ my rate tomorrow and it drops further can I re-lock?

[surpriseninja]

I don’t think you can re lock it that’s why I really hope it balances itself out

[Nelsont]

You cannot relock without voiding your contract and starting fresh.

It’s my understanding the Fed enacted an emergency rate cut in order to battle supply chain issues due to covid-19. The docks at Shanghai and across China are looking at a 4-6 week backlog with only 80% of the workforce back. The Chinese government has requested business to not work over or overwork their staff so this effect is expected to last much of the year.

[Peapod0609]

@msob24 if you have your credit access meeting tomorrow, then your rate should technically already be locked prior to that. It gets locked in once you have a signed contract and your MC processes it. For you to be having a credit access meeting, that should have all been done.

[Alikay]

Your rate gets locked when you get your loan estimate disclosure and you click that link in the email they send you.

[surpriseninja]

I really hope it goes back down. I’m in the DC/Metro area and that rate jump literally cut my already low options in half. Investors are snatching up fixer uppers with cash and I was in the middle of making moves toward an offer.

[msob24]

Hmm, my LE lists a rate but it there is a section for rate lock and the “no” box is checked. I’d be fine with the rate on my LE…. I’m at NACA now, meeting in about 30 mins so I guess I’ll find out soon enough. Thanks for you responses! Hope rate drops a lot this morning

[frankysmom]

@msob24

Please find out what’s going on here. I asked on the chat line and the operator said 3.5 is correct. I wonder if this is another one of Bank of American’s changes to the program.

@timtrumble

• This reply was modified 2 years, 2 months ago by frankysmom.
• This reply was modified 2 years, 2 months ago by frankysmom.

[msob24]

@frankysmom

I’ve noticed that they change the rate around noon on days when it adjusts. So I wouldn’t expect to see the site listing a different rate at this time of day. I’ll update after my meeting.

[frankysmom]

@ttrumble can you provide insight? Has the policy of “below market interest” changed?

• This reply was modified 2 years, 2 months ago by frankysmom.

[msob24]

It’s worth noting that even BOAs website lists a lower rate than NACA right now.

https://www.bankofamerica.com/mortgage/mortgage-rates/

3.375 in NY

[msob24]

My MC said he has no special insight into the daily rate changes but was surprised as I was that it jumped to 3.5 yesterday. He doesn’t know for a fact but he suspects that it will drop today. As far as he knows there haven’t been any changes to the program regarding NACA 30yr rate.

[TTrumble]

Hello all,

I hate to say it, but I’m a little disappointed with this thread. The sky isn’t falling.

There’s just no way our rate would jump up one-half of one percent in a single bound. In fact, the Federal Reserve announced a cut in the prime rate just yesterday to offset the (really silly) drop in the stock market because of the Corona virus scare. Even though the prime rate doesn’t have all that much effect on mortgages, if there was any effect, it would have dropped our rate to below 3%, not cause it to shoot up.

I recall seeing this happen once before several years ago. Our posted rate changes automatically when the bank’s rate changes and also figures in the difference between their rate and ours. When this happened before, it was a software hiccup between here and there. I don’t have any details yet, but I’m willing to bet that’s what happened.

I’ve got a couple of calls into people to try and get some answers, and I’ll update you here when I know something. In the meantime, relax. Details to come…

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

• This reply was modified 2 years, 2 months ago by TTrumble.
• This reply was modified 2 years, 2 months ago by TTrumble.

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