Author Topic: Too good to be true mortgage (refi) rate  (Read 9270 times)

Sylly

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Too good to be true mortgage (refi) rate
« on: June 23, 2014, 08:20:27 PM »
So, looking into doing a refi, for a high balance (> 417, < jumbo) conventional 30yr fixed rate, zero point, ~78% LTV.

So far, we're seeing rates roughly around 4.25 (2-3k closing) and 4.375 (no closing).

Then came this bank with a 4.00 rate and no closing.

I'm naturally suspicious, keeping in mind the adage "If it's too good to be true, it probably is." I've dug and dug, and couldn't find any worrysome complaints on the company. So as a last resort, I ask  you guys -- are any of you familiar with this bank? Is such a significantly lower rate and cost possible? Or should we jump on this, as our current rate is 4.75 and we plan on staying here a while?


Bourbon

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Re: Too good to be true mortgage (refi) rate
« Reply #1 on: June 23, 2014, 08:26:08 PM »
I did a refinance through them last year, and a few months later a purchase.  Didn't have a problem(appraiser on purchase was a bit of a pain, but that isn't on the bank).   I was working with a Timothy over there, can get you the name if you want. 

Only downside for me is the online system for my loans is through mymtginfo.com/northpointe.  A website ala the 90's with no mint.com etc support.  I don't like signing up for anyone to pull money automatically but just pay through my banks billpay process.

Zamboni

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Re: Too good to be true mortgage (refi) rate
« Reply #2 on: June 23, 2014, 08:29:11 PM »
It's not so much lower that it seems fishy.  Probably they keep the overhead low by forgoing the bricks and mortar.

Another Reader

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Re: Too good to be true mortgage (refi) rate
« Reply #3 on: June 23, 2014, 08:32:34 PM »
They are a bank located in Michigan that does mortgage lending.  Here's their website with current mortgage rates:

http://www.northpointe.com/mortgages/current-mortgage-rates/

You would have to check to see if they lend in your state.

Zillow is a place to get a general feel for rates.  Shop around, you may be able to do better.

TomTX

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Re: Too good to be true mortgage (refi) rate
« Reply #4 on: June 23, 2014, 08:58:44 PM »
A quick hop over to Bankrate.com got me 2 different lenders offering 4.0% with no points.

Sylly

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Re: Too good to be true mortgage (refi) rate
« Reply #5 on: June 23, 2014, 09:15:37 PM »
Thanks for the input guys.

The higher rates I got were from a local CU, the broker we got our original mortgage from, and another broker a family member swears by. The 4.00 NorthPointe quote was actually direct from one of their MLO's after we gave them enough of our information. So hopefully he was competent enough to check that his bank does lend in our state :D.

I guess I did see a couple of 4.00 and a few 4.125 trolling BankRate and Zillow. Being a bit paranoid about having difficulty with online lenders, we tried to look for reviews first, and managed to rule out most of those low rates one. Following one of the seemingly reputable one to their actual website, the rate went up to 4.25 for our numbers, and I figured that's probably a fairly common occurrence, so I had in my mind that the lower rates were probably baits.

sol

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Re: Too good to be true mortgage (refi) rate
« Reply #6 on: June 23, 2014, 11:39:52 PM »
When we were shopping for a mortgage a few months ago, the spread between the five initial quotes I got was about 0.5%.  Some people tried to tell me that the new lending standards were so strict that all lenders were going to give me basically the same rate, but that turned out to be complete bullshit.  Our eventual loan was almost a full point lower than some of the quotes I was given.  Every single lender I talked to made me at least one better offer than their own original quote.

I also had several lender reps tell me they would match or beat any other written offer I got.  I took each and every one of them up on that offer, sending them all copies of the lowest quote I got by email.  About  half of them told me the rates I was being quoted were impossibly low and there was no way they could match that, despite their earlier promises.  A few told me they tried but couldn't get down that far.  In the end I had two competing offers going back and forth, each out-bidding the other.  I finally got tired of the game, picked the lowest one, and they totally delivered on time and as promised.

It was a hassle for about a week to deal with all of it, but I figure it saved us many tens of thousands of dollars in the long run to get our rate down.  The whole thing did leave a slightly dirty taste in my mouth, as each lender tried a different tactic to get me to sign with them and not their competition.  Some common lines..

1.  "That rate can't be right, if they're telling you that they must be lying."   
2.  "Who's that?  I've never heard of them, they must not be a reputable company" 
3.  "Being in this business so long, I've heard a lot of horror stories about them, I'd be careful."
4.  "They won't be able to close on time, you'll end up paying more when they can't get it together."
5.  "All lenders are so tightly regulated now, you should just decide today while rates are low because everyone will be the same."
6.  "We do all of our own underwriting so we won't sell your mortgage, unlike those other guys."
7.  "That's just a teaser rate, that rate just isn't available on the marketplace right now."

All complete BS. 

mrgrump

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Re: Too good to be true mortgage (refi) rate
« Reply #7 on: June 24, 2014, 12:09:37 AM »
In the final stages of our refinance with an online bank and everything is going well. All of the lines sol spoke of popped up at some point from one of the many large banks that got beat out. I am hoping to schedule the closing this week and all will be good with the world. 15 years 3.375% about $2k in closing costs. Prepaid PMI of $1800 covered by the lender discount since LTV is only about 86%

Bourbon

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Re: Too good to be true mortgage (refi) rate
« Reply #8 on: June 24, 2014, 08:05:45 AM »
I will say that our first mortgage was through PNC bank, and it was sold to Wells Fargo on the day we closed. 

We have two loans through Northpointe now and neither has been sold.  I wouldn't mind the loan being sold, as again the website leaves something to be desired, but they have otherwise been no fuss. We found them through the Zillow website. I've got a few people /brokers that I have quoted through that are on my short list of good rates/low fees but its always worth shopping around.

dragoncar

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Re: Too good to be true mortgage (refi) rate
« Reply #9 on: June 24, 2014, 08:11:41 AM »
As long as it's 4% apr, not like  4% on a slightly higher balance that capitalizes points or something like that.

frugalnacho

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Re: Too good to be true mortgage (refi) rate
« Reply #10 on: June 24, 2014, 08:35:05 AM »
who cares if the mortgage gets sold?  I'm pretty sure mine has been sold multiple times, but I don't have to switch companies or log ins or anything, I still deal with the same company that closed it.   It has no impact on the price, due date, or how I am able to log in or pay it, so I don't see the big deal.  Do you guys have to change mortgage companies when it gets sold or something?

Sylly

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Re: Too good to be true mortgage (refi) rate
« Reply #11 on: June 24, 2014, 09:08:03 AM »
I just assumed any of these online lenders would immediately turn around and sell the mortgage. That's what's happened with us so far -- earlier refi (nightmare that took **months** to finish -- which is why we're skittish) for husband's earlier property got sold within days, so is the one for our house. Not really a concern to us as long it doesn't change anything about our loans, which so far it hasn't.

neo von retorch

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Re: Too good to be true mortgage (refi) rate
« Reply #12 on: June 24, 2014, 10:53:58 AM »
My first mortgage was immediately sold to Wells Fargo, and I actually reviewed my balance and payment history through the Wells Fargo web site, not the original lender. That being said, the closing was already complete and the rate/payment/escrow arrangement all stayed the same. It made no difference to me, and I was happy to have a modern web site to use. (Later, when rates dropped, I refinanced to my credit union, twice, and couldn't be happier. Currently at 3.375% / 15 year / ~10 years left)

eil

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Re: Too good to be true mortgage (refi) rate
« Reply #13 on: June 24, 2014, 11:19:56 AM »
who cares if the mortgage gets sold?  I'm pretty sure mine has been sold multiple times, but I don't have to switch companies or log ins or anything, I still deal with the same company that closed it.   It has no impact on the price, due date, or how I am able to log in or pay it, so I don't see the big deal.  Do you guys have to change mortgage companies when it gets sold or something?

Your mortgage has not been sold. When a mortgage is sold, you have the same loan, but an entirely different company services it. It changes who you pay, who you call, whose website you log into, etc. The terms of the loan do not typically change. If the company who bought the loan has dumb employees and poor customer service, it can be a nightmare. But this is (in my limited experience) relatively rare.

The mortgage for our previous house was sold three times within seven years. One of the companies claimed to have not received a payment despite having cashed the check and it took months to iron out. Thankfully, it was sold to someone else soon after. Our current mortgage was bought by Wells Fargo and they've been good to deal with so far.
« Last Edit: June 24, 2014, 11:23:23 AM by eil »

clarkm04

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Re: Too good to be true mortgage (refi) rate
« Reply #14 on: June 25, 2014, 08:23:28 AM »

Your mortgage has not been sold. When a mortgage is sold, you have the same loan, but an entirely different company services it. It changes who you pay, who you call, whose website you log into, etc. The terms of the loan do not typically change.

Not true if your loan company is acting as mortgage servicing for the new loan owner.  Our home loan was owned one month by the bank we got our mortgage through before they sold it to Fannie Mae.  Received two letters from Fannie and one from the bank about how Fannie now owned our loan but it would still be serviced by our bank.  Like the previous poster, nothing for us have changed as both financial institutions made it very clear that everything would go through original bank.

mrgrump

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Re: Too good to be true mortgage (refi) rate
« Reply #15 on: June 25, 2014, 01:44:02 PM »
+1 to neo and markm. Every mortgage I have had has been sold and I have never changed my autopay from the original company I financed with.

frugalnacho

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Re: Too good to be true mortgage (refi) rate
« Reply #16 on: June 27, 2014, 12:28:01 PM »
who cares if the mortgage gets sold?  I'm pretty sure mine has been sold multiple times, but I don't have to switch companies or log ins or anything, I still deal with the same company that closed it.   It has no impact on the price, due date, or how I am able to log in or pay it, so I don't see the big deal.  Do you guys have to change mortgage companies when it gets sold or something?

Your mortgage has not been sold. When a mortgage is sold, you have the same loan, but an entirely different company services it. It changes who you pay, who you call, whose website you log into, etc. The terms of the loan do not typically change. If the company who bought the loan has dumb employees and poor customer service, it can be a nightmare. But this is (in my limited experience) relatively rare.

The mortgage for our previous house was sold three times within seven years. One of the companies claimed to have not received a payment despite having cashed the check and it took months to iron out. Thankfully, it was sold to someone else soon after. Our current mortgage was bought by Wells Fargo and they've been good to deal with so far.

I am almost positive that I have received several letters stating that my mortgage had been sold, but I didn't need to do anything, it was almost just like an FYI letter.  That sounds like a nightmare that they could sell it and force you to deal with an entirely new company several times.  So in theory they could resell your mortgage every 2 months and force you to deal with a new company, with a new mailing address, and a new web site interface?  That sounds like it's not even legal to do.