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Recommend a mortgage supplier?
Posted by: anonymouse1
Date: May 01, 2021 11:19PM
We're looking to refi our house for $300K. Best rate I've found is 2.000% with total out of pocket of $3,539. the problem is my wife doesn't want to use them because she's heard they can take months to process the loan, so I'm looking for other loan sources. Any recommendations?

Thanks!
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Re: Recommend a mortgage supplier?
Posted by: SKYLANE
Date: May 01, 2021 11:24PM
I refinanced last year with Owning, they closed in less than 30 days. Would recommend.
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Re: Recommend a mortgage supplier?
Posted by: mattkime
Date: May 02, 2021 07:45AM
Why does it matter how long it takes if the rate is locked in?

I contacted 4-6 places to get their best rate and then showed my best offer around which always got me another couple of grand. The websites varied a bit but the process didn’t much. Once you have your docs for one you have them for all. Go with the cheapest.

---

Where are you located?

You could give Better.com a try.

Oh, I assume you're looking at a 15 year mortgage based on your rate.







Edited 2 time(s). Last edit at 05/02/2021 08:30AM by mattkime.
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Re: Recommend a mortgage supplier?
Posted by: davester
Date: May 02, 2021 08:23AM
We used [www.provident.com]. Best rate and fast service. Why are you going with a loan with such high fees on a refi? Does that actually pencil out? For just a tiny point increase you can probably get the fee to zero.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 02, 2021 08:37AM
Anonymouse1,

The time frame involved isn't uncommon at all. Refinanced last year and the whole process took about three months from start to finish. The time before that, it took near six months. The amount of time necessary all depends on the paperwork involved, lien search, appraisal, and other such niceties. You may or may not need an attorney.

Robert
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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 02, 2021 08:41AM
Davester,

Not sure where you're coming from when it comes to fees. The fee(s) quoted to Anonymous1 aren't too shabby at all. Even the fee(s) involved with a loan from Provident can hit a similar amount. [www.provident.com]

Robert
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Re: Recommend a mortgage supplier?
Posted by: mattkime
Date: May 02, 2021 09:28AM
The fees aren't unreasonable but they might not be necessary either.
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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 02, 2021 09:40AM
Matt,

Every mortgage company be it for a regular mortgage or a refinance charges fees. I personally have gotten two mortgages and done two refinances and there are have always been fees. Between family and friends, I've seen and been involved with nearly ten more mortgages and refinances. I was involved in a refinance for a co-op, too. All have fees. Always. The amount of the fees can differ tremendously and many are rolled into the mortgage so you may not pay them directly. There are always fees. Always.

Robert
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Re: Recommend a mortgage supplier?
Posted by: datbeme
Date: May 02, 2021 10:03AM
I've been out of this awhile, but the fees don't seem bad for locking in 2% for the long term. But if there's a chance he'll pay it off early or move in a couple years, rolling it into the mortgage may make sense. It's worth running the numbers.
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Re: Recommend a mortgage supplier?
Posted by: mattkime
Date: May 02, 2021 03:51PM
You can often eliminate or substantially reduce your fees by going with an eighth point higher interest rate.



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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 02, 2021 05:52PM
Matt,

Not a chance. Been there, tried that. Maybe reduce them to a limited degree but definitely not eliminate them. Any mortgage provide wants its piece of the pie. Get one to get rid of the fees or reduce them substantially? Good luck with that. It's always worth a try as long as you're prepared for disappointment.

Robert



Edited 1 time(s). Last edit at 05/02/2021 05:53PM by Robert M.
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Re: Recommend a mortgage supplier?
Posted by: mattkime
Date: May 02, 2021 07:39PM
Robert M,

Why are you so certain?



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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 02, 2021 08:13PM
Mattkime,

Experience. Mine and that of others, something I said in my previous post.

Robert
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Re: Recommend a mortgage supplier?
Posted by: mattkime
Date: May 02, 2021 08:24PM
And why does your experience invalidate my experience?



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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 02, 2021 08:59PM
Matt,

You offered a statement not an experience and it is contradicted by my own and that of others and the fact that nobody works for free. Not you. Not a mortgage broker. Not a bank. To me, that is enough to call your assertion questionable at best until you can offer something tangible that demonstrates otherwise. Even a so-called "no-closing costs" mortgage has fees (which include closing costs, appraisal, etc). They're made up for in higher interest rates, rolled into the principal or the interest, etc. The costs always there one way or the other.

Robert



Edited 1 time(s). Last edit at 05/02/2021 09:00PM by Robert M.
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Re: Recommend a mortgage supplier?
Posted by: mattkime
Date: May 02, 2021 09:23PM
And where does that contradict what I said?







Edited 1 time(s). Last edit at 05/02/2021 09:24PM by mattkime.
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Re: Recommend a mortgage supplier?
Posted by: davester
Date: May 02, 2021 09:37PM
Quote
Robert M
Matt,

You offered a statement not an experience and it is contradicted by my own and that of others and the fact that nobody works for free. Not you. Not a mortgage broker. Not a bank. To me, that is enough to call your assertion questionable at best until you can offer something tangible that demonstrates otherwise. Even a so-called "no-closing costs" mortgage has fees (which include closing costs, appraisal, etc). They're made up for in higher interest rates, rolled into the principal or the interest, etc. The costs always there one way or the other.

Robert

Of course, but that can result in a no-cost loan. That's exactly what I did with my recent refi with Provident. They offered a range of interest rates with a range of costs or credits. I did the math and selected a slightly higher interest rate that gave me a credit that covered all the fees.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 02, 2021 10:00PM
Davester,

Then you’re still paying for it, just not directly out of pocket. I had nearly all the costs for each of my mortgages and refinances rolled into the new loan. Minimal direct cost me. I just understand that I’m still paying the costs. Just not directly.

Robert



Edited 1 time(s). Last edit at 05/02/2021 10:01PM by Robert M.
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Re: Recommend a mortgage supplier?
Posted by: davester
Date: May 02, 2021 11:03PM
Quote
Robert M
Davester,

Then you’re still paying for it, just not directly out of pocket. I had nearly all the costs for each of my mortgages and refinances rolled into the new loan. Minimal direct cost me. I just understand that I’m still paying the costs. Just not directly.

Robert

Understood. As you pointed out, it is often a good idea to roll those costs into the new loan, hence my original question.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 03, 2021 06:04AM
Davester,

Exactly. Mattkime doesn't seem to understand how it works, which to me, is a failure on the part of whoever handled his mortgage (or refinance) for him. A reportable mortgage provider will explain how the costs are being handled to his/her client, even for reduced or so-called no cost loans.

Robert
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Re: Recommend a mortgage supplier?
Posted by: mattkime
Date: May 03, 2021 08:27AM
Robert,

I really don’t understand what I’ve done to deserve this disrespect but I’ve had quite enough of it. If I’ve said something that doesn’t make sense to you just ask for clarification.

After a mortgage is completed it’s almost always sold. In my experience, going up an eighth of a percentage point added just less than 1% of the loan amount as a credit to cover loan costs or a check cut to the borrower. The loan originator is getting paid when they sell the loan. When I ran the numbers it often took more than 7 years for the lower interest rate to pay off, longer if inflation was factored in. I preferred money in my pocket vs a lower interest rate. It’s the same as paying points but going in the opposite direction.

Obviously this might not be available to everyone due to differences in property type, loan amount, and local market. Or the numbers might differ significantly. But it’s probably worth asking about.

My 30 year loan is at 2.375%. I could have locked in lower but it didn’t make sense to me. I refinanced multiple times in an 18 month period so had I paid loan fees I would have swallowed that sunk cost each time. Instead I got a check each time which has been put toward replacing carpet with hard wood floors upstairs.

Once again, ymmv.







Edited 1 time(s). Last edit at 05/03/2021 08:35AM by mattkime.
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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 03, 2021 09:06AM
Matt,

No disrespect here. Just bafflement. In your post, you stated you increased the percentage rate to cover the costs of the loan. So, instead of paying the costs upfront as some people do, you're paying the costs over time on the backend. Nonetheless, you're still paying the costs.

I'm sorry if I was harsh at times but it is very frustrating when someone is trying to push an idea that just isn't factual. Your experience is an example of one of my points.

I stand corrected in that you did understand how it works and apologize for saying otherwise.

Robert



Edited 1 time(s). Last edit at 05/03/2021 09:08AM by Robert M.
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Re: Recommend a mortgage supplier?
Posted by: datbeme
Date: May 03, 2021 09:29AM
You all do realize that you're pretty much making the same argument? Obviously how much you are "paying for it" varies by how long you keep the mortgage. There are scenarios where it's smart to pay up front, and there are scenarios where it's foolish.

There are no certainties here...except that anymouse has not gotten much input about how long it should take for his loan to be processed.



Edited 1 time(s). Last edit at 05/03/2021 09:31AM by datbeme.
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Re: Recommend a mortgage supplier?
Posted by: Robert M
Date: May 03, 2021 09:44AM
dat,

Mattkime was arguing for something that didn't reflect his actual experience. Turns out, his experience was an example that supported what I was talking about in my posts. In regards to Annoymous, the correct answer to his question is that the time frame varies from case to case. It's the nature of mortgages and refinances. Even something as simple as a single document that is readily available and should have been included with the paperwork sent to the mortgage/refinance provider or the client but was forgotten by accident can cause delays.

Robert



Edited 3 time(s). Last edit at 05/04/2021 06:43AM by Robert M.
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