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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: greenlivin on March 13, 2016, 05:45:36 PM

Title: Friendly Credit Union vs Distant Internet lender
Post by: greenlivin on March 13, 2016, 05:45:36 PM
I'm looking into refinancing my fuzzy warm Credit Union 4.65% 30 year loan that I'm 7 years into. One of the benefits they tell you about the Credit Union is that it's really nice to be able to walk in any time and have a friendly person to talk to. In 7 years I have never done that, so it doesn't seem like that big of a deal.  Bankrate and Zillow all list great rates with places like Sebonic, but there is something slightly scary and dodgy about those Internet Banks and loan services. Anyone have experiences with these lenders? It looks like you can save between .25 to .50% but is it really worth it?
Title: Re: Friendly Credit Union vs Distant Internet lender
Post by: Another Reader on March 13, 2016, 05:57:56 PM
If you are a cookie cutter borrower with W-2 income, good credit,  and a low debt to income ratio, you will likely save money by using an internet lender.  In your shoes, I would avoid the lead generators that are being paid by the lenders like Zillow.  Try Aimloan.com.  A number of forum members have used them and their rates and fees are among the most competitive out there.  If you have a complex situation with multiple mortgages, odd income situations, or anything out of the ordinary, you would probably benefit from a knowledgeable loan broker that can shop your application and borrower profile to multiple lenders.

Get some quotes and then go talk to your credit union.  Most cannot beat the best internet offers and their underwriting departments are often not very good.  That means the process could take a lot longer or an underwriter with limited experience could reject a loan a competent underwriter would get through.
Title: Re: Friendly Credit Union vs Distant Internet lender
Post by: greenlivin on March 13, 2016, 10:11:06 PM
Good info, thank you! Hadn't considered myself cookie cutter, but I guess I am!
Title: Re: Friendly Credit Union vs Distant Internet lender
Post by: jinga nation on March 14, 2016, 09:17:58 AM
I refi'ed my 30-year 4 3/8% mortgage, 6+ years in, to A 15-year 3% last August. My original lender (BofA) couldn't match rate, local credit unions couldn't match rate. First Internet Bank, who asked for a ton of income documentation (including my rental properties, making sure they were insured), won my wallet.

Whatever you do, never ever get in touch with Quicken Loans. They will call you incessantly. Or use a Google number. Funnily, it was a Quicken mailer that prompted me to think about refi.
Title: Re: Friendly Credit Union vs Distant Internet lender
Post by: JLR on March 14, 2016, 04:25:31 PM
We used a distant lender for our home loan. It was backed up by one of the "big 4" banks here in Australia (which made us feel safe) and we had no problems at all. Got a good rate, great conditions, etc. And everything was online, so it was easy for us.

But when we needed $10k quickly during the process of the sale of our house we were grateful for our local credit union who knew us on sight and approved the loan in the hour we had to spare to ask them for the money. They took our word for it that our near-new (ex-demo) car was good for collateral and that we had told them the truth about everything in our application. Of course, they checked up on all of our paperwork at a later date, but approved the money immediately based on knowing us because we were time-poor and needed to get back to our new town/job that was 4 hours away.

There are times when either option could be the best choice. Sounds like an internet lender could work for your home loan situation.