refinancing your home...where did you go?

[mtemm]

we are going to start looking into refinancing our mortgage to see if we can find a better rate somewhere. I will call our current lender tomorrow and see what they can do, but am wondering where others might have had success? any particular banks? online searches? I'm a little nervous about doing this because we have lost so much equity on our home I'm not even sure we will be able to, but I figure better to try than not.

 

[rszdtrvl]

We just refinance and went through our credit union. I think you can also go to a loan officer if you want.

 

[tvguy]

I'd go to a Mortgage Broker. They deal with dozens of lenders, and get a mortgage that is a perfect fit for you.
I refinanced the first time with my original lender. We bought our house with just 5% down, and when I refinanced, the guy argued with me saying they never offered mortgages with just 5% down, so I MUST have put more money down on my house that I said. The second meeting with him I just looked at him and said, look up the loan and see. He was shocked to see I was telling the truth.
My second refinance I went to Mortgage broker. He lined us up with a lender with the lowest rate, and strongly advised we consider going from a 30 year fixed to a 15 year fixed. It still dropped out payment by $300 a month, and looking back now....this was 19 years ago....and my house has been paid off for several years, I'm glad I made that move.

 

[mtemm]

thanks!

how did you find your broker?

 

[Tony-NJ]

Be careful with some mortgage brokers - some play by their own rules - we had a very bad experience with one just a few months ago. We did use one in the past that we were very happy with.

We ended up going to Spencer Savings Bank - a local NJ bank but it was right for us - they got us a lower rate than the broker could get and then dropped the rate once again before we closed. We went from a 30 yr to a 20 year and are paying about the same with cash out.

We used lending tree a while back - it was fine in the end but they were relentless at first. Even after we decided to use a certain bank - others kept calling and trying to get us to change our mind.

Just be careful and pay attention. the mortgage broker we almost used this time had tried to hide almost $9K worth of fee's buried in the mortgage.

 

[GingerJay]

Mortgage brokers are a great help but like a PP said, you really have to pay attention. They make all their money from the loan fees, so there is sometimes a conflict of interest- just find a good one and shop around- you don't have to stick with the first one you come to. Good luck

 

[mickeysgal]

Be careful with some mortgage brokers - some play by their own rules - we had a very bad experience with one just a few months ago. We did use one in the past that we were very happy with.

We ended up going to Spencer Savings Bank - a local NJ bank but it was right for us - they got us a lower rate than the broker could get and then dropped the rate once again before we closed. We went from a 30 yr to a 20 year and are paying about the same with cash out.

We used lending tree a while back - it was fine in the end but they were relentless at first. Even after we decided to use a certain bank - others kept calling and trying to get us to change our mind.

Just be careful and pay attention. the mortgage broker we almost used this time had tried to hide almost $9K worth of fee's buried in the mortgage.

We're currently using a broker to refinance our primary home and our rental property. When you say they tried to hide 9000 worth of fees...are these points, appraisal fees,etc.? What kind of fees are you referring to?

 

[LuvOrlando]

Personally, I would only work with brick and mortar local banks. The big banks, like Citi, make their money on business banking so they don't really bend for consumers. The internet and mortgage business in general is so full of cons right now I wouldn't dare give my info to anyone. Smaller places like credit unions are more likely to have tricky contracts. On the other hand, a nice size local FDIC insured BANK, called a bank, is big enough to be forced to accommodate federal laws rules and regulations regarding every aspect of your transaction yet small enough to have rates which will reflect your local economy. I'd call every bank in town and ask for their rates AND all closing costs and closing fees, be persistent on the fees because most places try to pretend they don't exist until you are sitting at the table. Only make a decision after you have all the numbers.

FYI, go with a fixed 30 year rate. I think anyone getting a variable rate right now is putting themselves in harms way. I know that variable rates are always lower than fixed when you first pick up the loan. It's a bait and switch tactic that only benefits the bank. In good times the variable just looks lower which seems better. In bad times it will be made to look lower by attaching an ARM which says you get a particular low rate for typically 3-5 years then it goes variable. In contrast a fixed rate is always higher. However, when inflation hits and borrowing money becomes more expensive the interest rates will rise and a variable rate will become your worst enemy because it allows a bank to change the cost of your borrowing to whatever the prevailing rate at the time may be. In my opinion people are much better off with a set payment over a decided upon period of time.

Good luck and READ EVERYTHING before you sign it, if you can't then spend $250 and get a lawyer to do it for you.

 

[The Mystery Machine]

We have our loan through our local credit union. We do know a mortgage broker and have used him many times in the past however he can't match our credit union right now.

 

[mickeysgal]

Personally, I would only work with brick and mortar local banks. The big banks, like Citi, make their money on business banking so they don't really bend for consumers. The internet and mortgage business in general is so full of cons right now I wouldn't dare give my info to anyone. Smaller places like credit unions are more likely to have tricky contracts. On the other hand, a nice size local FDIC insured BANK, called a bank, is big enough to be forced to accommodate federal laws rules and regulations regarding every aspect of your transaction yet small enough to have rates which will reflect your local economy. I'd call every bank in town and ask for their rates AND all closing costs and closing fees, be persistent on the fees because most places try to pretend they don't exist until you are sitting at the table. Only make a decision after you have all the numbers.

Good advice. We are currently using a broker that other's have used. He is putting our loans through with a local bank that's relatively new to our area BUT one that I so happen to have an old, still existing, checking account with from when we lived in another state. I was hesitant to use a broker, but when I found out that other's we know have used him AND he's going with a solid, local bank that I personnally do business with, I felt it is/was ok. Hope I'm right!