Thursday, June 6, 2013

Rates are going up up up but still no set date

Things are not looking good for anyone not locked their mortgage rate yet.  Each week for the past month rates are higher at a very fast pace.  We are now looking at 4.5% vs low 3% a month ago.  We purchased with Ryan Homes at the end of December 2012 and our completion is 2 months behind schedule.  If we were suppose to close in June as scheduled when we signed the contract we could've gotten the low 3% rate but with all the problems with construction and other delays, we are looking  at 1.x% increase in rate on a high balance loan, that's A LOT OF MONEY.

This morning I wrote a letter to our SR and PM's manager (who has been very nice helping us with the construction problems we found) to request for closing credit and closing assistance.  I held them responsible for the delays and construction problems we been having since foundation.  (you can read them by going back to last 4-5 blog posts).  I will post a follow up if Ryan will take some responsibility for this.

Anyway, here are some updates on the house construction.  They have installed shingles yesterday on the roof.  There are still wet spots in the basement and the subfloor is not completely dry yet on the upper floors.

I used a moisture meter to test the wood in the family room (where it was over 1" of water sitting over night) and it reads18% moisture vs 9% -10% on the dry wood on the wall and over 20% in the cracks between the wood panels.  We had 80 degree weather the last 2 days which helped with drying the wood but will need more drying time.  Mold can still grow in the cracks between the wood where saw dust are packed in and still wet.


  1. That's awful! We actually aren't scheduled to break ground until next week (but I just found out we don't have the permit yet...) and I'm thinking we're going to lock in today/tomorrow with a 120-day lock.

    I was surprised at how "affordable" it was to buy down the rate. We had been planning on putting down a little bit more money toward our downpayment, so now we've just reallocated it to points.

    Yesterday we were quoted 4.25 and are buying down to 3.625 for a little over $8k. Maybe you could get them to give you a closing credit equal to what it will cost you to buy down your rate?

    1. Brandon,

      We will see if we can get Ryan to pay for the buy-down on the rate. Are they not the same company (Ryan and NVR)? They simply paying themselves I guess :) but $8k to us is a lot of money and we don't have anymore to give.

    2. Yeah, NVR is the parent company of both Ryan Homes and NVR Mortgage. I think that's how they're able to do things on the mortgage side more easily when you go through their companies - as long as they have an overall profit, they can probably absorb some cost on the mortgage side.

      I agree - it's terrible that rates have gone up so much so quickly. Best of luck in getting them to help you out with the rates!

  2. Ugh, that is so frustrating. I'm sorry and understand your concern about the moisture in the wood. I remember getting very nervous about this.

  3. We counted our blessing when we locked at 3.5%, and since it's RH's fault for all the delays, that is going to cost you over time a lot so you are totally justified in asking for credits... their origination fees are insane, and a lot of banks pay all or most of your closing costs, so I think they should cough it up at this point. And, you should DEF get an inspector before dry wall goes up, all that moisture would make me nervous too.

  4. Yes, it's disheartening to watch that happen. We locked yesterday, and were able to buy down just a little, but our mortgage guy advised us that it didn't make sense to buy down anymore than we did, as it would be cash out of hand for us, and would only save us a few dollars each month. Ugh. Good luck on getting some assistance with closing costs, etc.!

  5. Good luck with this. I agree with Rachael and your original post. This sounds as if the delays are on their end, not your own. It will be interesting to see how/if they work with you. It makes logical sense to me, but what do I know? The rates are climbing and I am sorry to see that happening. I hope that you can get a rate that you can manage.

    Also, the wood is a real issue. I too would be very worried about mold. Again, Rachael has the idea. Hire an outside inspector. You may get the "Nah, it's all good" from your PM or SR. However, they may be just telling you what you want to hear. Hiring an inspector now could save you a TON of headaches later.