I would question your broker about it and give her the opportunity to do better, or at least match it.

Don’t feel guilty – one point on a jumbo is a lot of money. Many times mortgage brokers reckon they can charge more on referred deals, since the client is less apt to shop around.

That being said, I checked rates, and it hard to believe Countrywide and Quicken would charge 0 points for those rates. So be careful. Get a Excellent Faith Estimate to see if there are other charges included.

By the way, with all due respect to Farina below, a 7-year ARM is okay, especially if you have excellent credit and you only anticipate being in the home a few years. Foreclosures happened mostly to people who took out 2 or 3-year ARM subprime mortgages. The rates adjusted up, and because the subprime loan programs no longer exist, they can no longer refinance out of it. Subprime ARM rates always adjust higher due to a high margin. "A" paper ARM (both conforming & jumbo) rates adjusting today are really going DOWN.

Buyingahouse,

The broker is ripping you off. Those rates are obscene and as a broker myself, i’m ashamed of what my peers are doing. Yes, brokers are helpful in so many ways but that doesn’t mean they deserve a $15,000 check for information. I’ve attached a pdf under my sources down below for you to check out.

Brokers are not made equal. If you want to work with them in the future, question these following questions first:

1) What are your top 10 banks that you work with? if you don’t recognize the banks, get the hell out of there. Top brokers typically stick to the major banks like Wamu, wells, countrywide, citi, chase, usbank and GMAC.
2) Am i getting the "par" rate? This is asking them to tell the rate the bank qualified you for without any additional cost to you and without any yield spread (kickback) coming from the bank.
3) Are you with the Better Business Bureau? So many people don’t research this. If they’re not a member, don’t trust them. go to http://www.bbb.org to find them.

I’m sorry that this broker is taking you for a ride. It’s a shame but most brokers aren’t regulated very well.

Lenders have greater flexibility then brokers about what they can fund. Also, a lot of lenders pay their loan officers off a % in volume and do not have the charge points to make money. A broker has to charge a slight fee (the point) to make money on the deal, and may be making a small more by upselling the rate a bit (doesn’t sound like too huge an upsell though).

To question the broker to match the rate would probably mean asking them to make no money on the deal. It’s the same difference between shopping at Wal Mart or supporting your local drug store. The local guy probably costs a bit more, but you get to feel excellent about going with the local guy rather then supporting a heartless huge chain store.

Looking at my own rate sheet, it doesn’t appear that the broker is being a pig about it, but the way the business is structered demands that they charge you a bit more so they can eat. Remember, they don’t get paid if you don’t close.

Excellent Luck.

Do not get an ARM! The rate will change in a few years. that’s why the name "Adjusted Rate Mortgage". Guess why there are so many forclosures? Many got ARMs and when the rate changed, they could no longer afford the payments!!

Tell the broker what Countrywide is offering. If you are getting 100% financing, I can see why the interest rate and point.

Brokers are not the the actual lenders, they contract the loans from banks and other sources. So, the can "shop" for the best to offer you. He can certainly contract through Countrywide for you. But, one thing is what Countrywide offers you before qualifying you (getting your credit score, know your financial situation), and another is what they will qualify you for. The reality may be different thant the 6%, 0 points.