Internet source for Re-Fi

[Boomyal]

Anyone ever use and internet source to refinance their home? The few that I have looked at don't seem to be any great shakes. Huge point and fee charges.

 

[EZLoader]

Re: Internet source for Re-Fi

I've found that most of them are bait and switch sites that rarely perform as advertised. <br /><br />The real problem with these "out of town" internet mortgage brokerage sites is that:<br /><br />1) they are not the actual brokerage but just a referral site that gather potential borrowers names and information and then sell it for a referral fee or:<br />2) that the internet broker does not know our local market and this causes delays or:<br />3) that the internet broker pulls a last minute change (bait and switch on you) just before closing so it's too late for you to shop for another loan (if your a buyer with the moving trucks on the way). The last minute changes usually end up costing you more in closing costs and/or a higher than initially quoted interest rate. There are many horror stories from clients regarding internet loan brokerages.<br /><br />I and Dan can recommend a couple of local brokers that are very reputable and will do a good job for you if you like. <br /><br /><br />

 

[Bob_VT]

Re: Internet source for Re-Fi

Refinance? Go local first to keep the money in your community. You might be pleasantly surprised and get rates 1/4 or more below advertised which amounts to alot over the time of the loan.

 

[craze1cars]

Re: Internet source for Re-Fi

I tried once about a year ago...can't remember the name of the site, though. Rates were good, service was passable, and I started to go through with the details. But eventually I got irritated and a little concerned with the inconsistent service (not always calling me back exactly when they said they would, etc.) and I just felt "safer" with a local broker. In the end I actually got 1/4 pct lower than my best internet quote with only a couple extra $100 in higher closing fees. So I feel I got the best service AND the best deal through a small local mortgage broker.

 

[KRS]

Re: Internet source for Re-Fi

I've shared the situation that I am in.... I found a way to refi my 2nd mortgage and increase it to consolidate all but $8,000 of debt. The product they put me in is a 15 year fixed, and yes they do charge a few fees because that's how they pay the guy I called his commission, and they don't service any loans it will be sold on the market.<br /><br />I applied on Tuesday the 13, I signed Thursday the 22nd, they are a sub-company of Lending Tree Loans, www.homeloancenter.com<br /><br />I had a phone call each day with a progess report, they sent a notary to my home (yes I paid a $100 fee for it) but that ensures that they get their papers signed the way they want.<br /><br />Because my loan is over 100% loan-to-value, the pricing is higher, 13.25%, but it's way better than 29% on credit cards.<br /><br />Not only am I pleased that I found the first step to working myself out of the problem I've gotten into... but I am truly pleased with the professonalism and speed with which they did the loan.<br /><br />Steve Funk is the guy I spoke with who took my application (no I don't get a referral fee )<br /><br />Good luck.

 

[EZLoader]

Re: Internet source for Re-Fi

Asfy,<br />It's good you're consolidating a bad situation but a 13.25 sub-prime rate in todays market is about the highest I have seen in over 20 years.<br /> <br />This is not an outfit to be recommending to the average borrower with clean finances. I have no doubt they acted quickly on your loan at those rates and terms they were salivating over it.<br /><br />You certainly don't want to be locked in at the 13.25 rate for 15 years. Your goal should have been to clean up your credit card debt and credit rating over a short term and then be able to shop for a much better home loan. At a minimum they could have broken your financing into a larger and lower rate first mortgage and a smaller, but higher rate 2nd mortgage that you could eventually pay off and be rid of.<br /><br />Do you have a prepay penalty clause in your deed of trust? I hope not but I'll bet you do. They usually include these and make them quite stiff (i.e. - 6 months of interest or something similar if paid off before a certain number of years). "Sub prime" lenders are as close to being legal loan sharks as it gets.<br /><br />Whenever you're refinancing to consolidate consumer debts you really need to be careful because that is when mortgage outfits really seem to take advantage of people. <br /><br />I still advise anyone who is seeking any loan to shop around and get a minimum of 2 (or more) "good faith estimates". If the 2 lenders are far apart then get another quote until you see a convergence of offering terms amongst them.

 

[Limited-Time]

Re: Internet source for Re-Fi

I'm with Bob_VT, We Went with a local big bank (Bank of America) for our equity line with NO FEES or COST to us. The rate was tied to prime with a set cap over time. We had to Use a certain amount within 30 days of closing or pay a fee. The initial rate was around 4%, that was a few years ago it's gone up a bit since then.

 

[Boomyal]

Re: Internet source for Re-Fi

Thanks all. You've reported it as I perceived it most likely was.

 

[Johnshan1]

Re: Internet source for Re-Fi

I tried an internet company, lending tree, and I now have 3 or 4 credit inquires on my credit report and since I am not using them it was for nothing. They all want to run your credit first thing and then they will tell you if what you want is even offered, instead of saying yes it is offered or no it isnt.<br /><br />My point is stay local they will only run your credit once when they find out what you want instead of half a dozen times, damaging your credit score.<br /><br />-John

 

[KRS]

Re: Internet source for Re-Fi

No pre-pay penalty on mine, and when you shop for GFE's, if they are pulling your bureau... down goes your score.<br /><br />And yes, I did the perfect thing for me. You forget that the increasing credit card minimum payments from 2-4% were coming shortly... which would have put me under. There isn't a short-term solution to making things better so I could try this in a few months.<br /><br />I imagine that any lender can have more than one rate, just because I recommended this lender that gave me a high rate doesn't mean they wouldn't give him 6%, I just offered my experience, he's a big boy and can decide for himself.<br /><br />Good luck Boomyal.