Author Topic: What Mortgage Company to Choose?!  (Read 4405 times)

AMims

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What Mortgage Company to Choose?!
« on: September 22, 2012, 02:52:30 PM »
My husband and I are planning to buy a house in the next 2 weeks or so. We've been researching neighborhoods for a while and have finally decided, based on a number of factors, where it makes sense to settle. We know that a valid off is accompanied by a pre-approval, which we don't have yet. We've visited a few banks and have seen some online quotes regarding mortgages but there are so many lenders out there that we are totally overwhelmed by the abundance of options. Welcome to America, right?! A few details about us:

1. We have a little over 60% to put down
2. We are looking to borrow no more than $80k
3. We are buying in New England (RI)
4. We have stellar credit and zero debts
5. At our current savings rate we can have this paid off in three years or less
6. We are in our late 20s/early 30s

Yet, since the rates are so low, maybe it makes sense to get a 30 year mortgage which would act as an inflation hedge and give us flexibility if we ever lost our jobs. Any thoughts or experiences from first time home buyers on where to go for a mortgage?! We use ING for checking/savings account and they have unique product offers of 5 and 7 years. We have also been weighing the tradeoffs of interest rates versus points. Any/all thoughts are appreciated. Much thanks in advance!

MooreBonds

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Re: What Mortgage Company to Choose?!
« Reply #1 on: September 22, 2012, 03:42:43 PM »
With such a low mortgage balance, your total closing fees will be a significant part of your comparisons.

Also, as a side note, if you're dealing with 60% down, I wouldn't even bother having a 'pre-qualification' rate. In many places, it's still a buyer's market, and if you're working with 60% down, I can't see financing being an issue...so just submit your offer without any financing contingencies.

I'm in the process of refinancing my 5/5 ARM with PenFed Credit Union http://www.penfed.org/ to roll it into PenFed's 1.99% 5-year HELOC. There are ZERO closing fees/appraisal fees, and it's a rock-bottom rate to boot! (If you pay off the loan within 2 years, then there are fees they will charge you). Also, if you have more than 30% equity, they may bypass the appraisal fee as well. They may let you do it as an initial purchase....if they don't, you can do their 5.5 ARM with a purchase, and it will likely also have a zero/minimal closing costs and fees structure.

Given your dollar amount and projected payoff schedule, I'd strongly recommend the PenFed 5 year HELOC at 1.99%. Any 30-year product will likely carry a few thousand in total appraisal/closing fees - and a few thousand in fees alone is more than the interest you'd pay on the PenFed HELOC! :)

Anyone can join PenFed Credit Union - if you aren't a member of the military, just pay a one-time $20 fee to join the National Family Military Association, and you're in like Flynn!

Oh, and their credit card also gives you 5% cash back for any gas purchase, and 3% cash back for any supermarket purchase.

velocistar237

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Re: What Mortgage Company to Choose?!
« Reply #2 on: September 22, 2012, 06:14:43 PM »
I just had a good experience refinancing with AIM.

TomTX

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Re: What Mortgage Company to Choose?!
« Reply #3 on: October 13, 2012, 08:34:59 AM »
working with 60% down, I can't see financing being an issue...so just submit your offer without any financing contingencies.

I'm in the process of refinancing my 5/5 ARM with PenFed Credit Union http://www.penfed.org/ to roll it into PenFed's 1.99% 5-year HELOC. There are ZERO closing fees/appraisal fees, and it's a rock-bottom rate to boot! (If you pay off the loan within 2 years, then there are fees they will charge you). Also, if you have more than 30% equity, they may bypass the appraisal fee as well. They may let you do it as an initial purchase....if they don't, you can do their 5.5 ARM with a purchase, and it will likely also have a zero/minimal closing costs and fees structure.

If I could swing a 5-year payment schedule, I'd be all over that 1.99% HEL.

Able was I ERE

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Re: What Mortgage Company to Choose?!
« Reply #4 on: October 13, 2012, 06:32:24 PM »
If I could swing a 5-year payment schedule, I'd be all over that 1.99% HEL.

Can you swing part of your mortgage as a 5-year payment?  The nice thing about it being a HEL, is you can have a first mortgage for most of your loan amount, and put a small part at the lowered interest rate.

TomTX

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Re: What Mortgage Company to Choose?!
« Reply #5 on: October 23, 2012, 08:16:13 PM »
If I could swing a 5-year payment schedule, I'd be all over that 1.99% HEL.

Can you swing part of your mortgage as a 5-year payment?  The nice thing about it being a HEL, is you can have a first mortgage for most of your loan amount, and put a small part at the lowered interest rate.

I don't know that I can swing enough of it to matter. I already refinanced a year ago from a 25-left-on-a-30 down to a 10 year loan. If we can get income up more, I'll look again.

Thanks for the suggestion though!

simonsez

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Re: What Mortgage Company to Choose?!
« Reply #6 on: October 24, 2012, 07:02:49 AM »
That PenFed credit card sounds too good to be true.  Do you have to be a FICO rockstar to be able to qualify for it?  I'm looking to add a second credit card and this sounds promising.  Do you work for them or something and get a commission? haha

Toddius

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Re: What Mortgage Company to Choose?!
« Reply #7 on: November 16, 2012, 09:05:42 AM »
I am working with GMAC right now on a duplex.  They had the best rate, best discount point deal and they are paying all my closing costs.  This may be just a local thing for here in Seattle, but they have blown everyone else out of the water.