FHA Refinance-is this a good rate?

[AAM2012]

I was quoted a rate last week of 3.5-3.75% for a 30 yr FHA fixed loan but when I called today I locked in a rate at 3.875%. At first the guy was quoting me 4.2% but then brought it down to the rate we locked.

I just looked at the current rates for today online (on the bank's website) and it's listed as 3.5% for a 30 yr FHA. We both have credit scores over 800...did I get screwed? Why would there be such a difference between what they have online and what they gave me?

It seems like it is negotiable as he didn't give me the best rate from the begining. Can I call and try to get it lowered even more? Ugh!

[Susie]

Are you working with a broker or an individual lender?

The change from last week to this week is just that. Rates change day to day and week to week. As far as rate quotes changing today, if you said you're working with a broker, I wouldn't be surprised. He might've found one lender that could give you 4.2%, and then found another lender that could get you 3.875%, hence the change. Our broker did that with us - we bounced from planning on an FHA loan with one lender, and then a different lender, depending on who had the best rate for us that day. As far as negotiating with a single lender, I haven't really heard of people doing that, except maybe asking a lender to beat a rate quote from another lender.

[AAM2012]

It was with a lender (Wells Fargo) which is why I am concerned. First he said 4.2 with 0 cost and then I said we were looking for under 4 and that's when he said he could get down to 4% with 0 cost. Then I said we'd be willing to put some money down and he said he could 3.875 with minimal costs (approx $500). It seems weird that he wouldn't give me the 4% quote initially. On their website it lists the current rate for today as 3.5%.

It's still a LOT better than what we're currently paying but it just seems with really good credit I thought it would have been an even better rate.