Posted on 10/18/2010 11:08:58 AM PDT by WOBBLY BOB
looking at Quicken Loans, local credit union or stay with my current lender.
any suggestions or experiences ?
I'm nervous about taking the plunge due to all the foreclosure scams from all the selling and reselling of mortgages. I'm with US Bank and they have not resold mine in the 8 years I've had it (to their credit I believe they declined TARP, too)
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I’ll be watching your responses here - thinking we should refi too, shaving 2 points would be worth it.
I'm interested in seeing what advice you get. :)
I refinanced in Sept (before the foreclosure crisis). Refinancing your own home should put you in the clear on title problems (hopefully). The amount of paperwork required to refinance has definitely gone up (at least in Texas). Definitely, a good time to do it if you can swing it. The refinance industry is rolling out the red carpet for qualified customers.
Google mortgage calculator and enter the info. Might want to go to a 15 fixed.
I'd prefer to go with someone with a local presence, not an online broker/lender, but that's me.
You can ask if they will keep or sell the mortgage.
I am looking only at 0 point loans. My credit union does not require me to escrow my taxes and insurance, and I like that, but not sure if I will get that with another lender without paying extra.
Leaning toward doing it ,but there are so many shady companies advertising all over I’m not sure who to go with.
I like a 30 because I can make it a 15 by paying extra principal but have the option of falling back to the 30 yr payment if necessary. Of course, the 15 yr loan interest rate is lower.
thought about that too, but in this economy, if I lose my job I will likely be making about half what I do now so the lower payment is enticing.
avoid Quicken Loans like you would avoid the Plague. Most banks want your money rather than your house. Quicken loans doesn’t care which they get.
I totally understand. I have actually stop refinancing with 2 different companies because of their questionable business practices. If you go through an internet service provider for loan comparisons that will help a little as they usually vet their companies. In Texas we can also access the government web sites to check up on the companies and the the individual broker who is doing the refinance to see if there are any complaints.
In my previous refinances I went for lower monthly payments on 30 yr notes to free up cash flow. This time around I went with a 15 yr note as I decided I would like to pay my house off vs. investing the money in today’s broken markets. Either way, the rates are very good. Even after rolling in my closing costs (averaged $4K with 1 pt), I will will have paid for the refinancing and be back on my original schedule in 1 year.
My recommendation is to go to bankrate.com or any of a hundred places where you can get a mortgage calculator. (Google "mortgage calculator") Plug in your numbers, and print out the amortization table of your current loan and whatever your bank is willing to offer. Study them. Study them some more. Lots of subtle insights occur when you stare at those numbers for a while. Depending upon where you live and the type of appreciation (or not) or deterioration (or not) that has gone on in your region, you may actually be able to refi into a shorter term loan and have your payments not really change that much. THAT is the kind of thought exercise you should, IMHO, be engaging in. "Can I move to a 20 year loan and keep my payment within $100 or $150 of where it is now?" That would be smart, smart.
A mortgage written 8 years ago is extremely unlikely to have gone thru any of this current hinkyness, plus if the originating bank still owns it, you're fine.
Be prepared to go to a new lender if they won't cut you a deal on fees.
I just refied in Sept. - I got the best rate through a credit union, but you may want to try to modify your mortgage or refi through your current bank because you may save in fees. You could also negotiate the rate with your current bank.
You are under no obligation to take on debt for you kids’ college. Whatever you do, do not co-sign for loans.
Well, it wouldn't necessarily be debt. I plan on helping out with some costs, not all.
Totally agree about avoiding Quicken Loans. They were very sketchy on the details when compared to other loan companies that I looked at. I tend to like local state loan companies vs. national loan companies when it comes to refinancing. They seem to have a better understanding of local markets for appraisals and individual state rules for closing.
There is a wide range in stability of local banks, though. Some drank the real estate kool-aid by the bucketful while others behaved very prudently. Make certain to do your research just as they are doing their research on you.
US Bank seems to be pretty stable, but again - resaerch, research, research.
They were showing 4.0% with 1 point for 30 year fixed here over the weekend.
I don’t know what their rates are, but one place to try might be MetLife home loans. I know someone who works at one of the places, and it seems to be run ethically and conscientiously.
Call multiple brokers. Tell them your 3 Fico Scores or the middle score. DO NOT allow them to pull credit. Give them your your income and expenses. Ask for their rate. Ask for a Good Faith Estimate of costs based upon the information you provided. If they won’t comply, move on. Shop them hard. Ask them to reduce their fees, etc.
Banks typically charge more than brokers.
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