Jump to content

How come people aren't talking about national mortgage lenders?


Dottles
 Share

Recommended Posts

Wouldja do it?  Why would you go with a more expensive, local lender?  Because they can put a name to your face  when you go into their office you and plead for mercy when you can't make your payments?  And if you were to go with a national lender, are you just resigning to the fact that they're going to call in the cavalry?   Do you prefer Better.com, Quicken/Rocket, or Unite Wholesale Mortgage?  I mean come on folks -- there's big sharks out there and I want to hear/read your points of view on this.

GettyImages-103337074-1280x720.jpg

 

Do you prefer a local lender or a national one?

Link to comment
Share on other sites

We don't talk about it, because most people here have no mortgage.

With good credit, you have great power.  You can get the best rates that the market has to offer.  

If I needed to take a mortgage loan, I would likely call the local credit union or a broker.  Lending tree will even drill down the best loan rates for your scenario. They need your business, and if you have 750+ credit rating, they will fight for your business.

Link to comment
Share on other sites

 i would do your credit union. I have heard they have become one of the biggest players in the market. But your loan will be sold to a servicer almost upon closing. So it almost doesn't matter. You aren't going to have the opportunity to go down to your local lender & ask for some leeway. Have you talked w/a mortgage broker?

  • Like 1
Link to comment
Share on other sites

26 minutes ago, Dirtyhip said:

We don't talk about it, because most people here have no mortgage.

With good credit, you have great power.  You can get the best rates that the market has to offer.  

If I needed to take a mortgage loan, I would likely call the local credit union or a broker.  Lending tree will even drill down the best loan rates for your scenario. They need your business, and if you have 750+ credit rating, they will fight for your business.

Our bank worked hard to keep us with them.  We got the lowest rate out there and they gave us the form that said they would not sell the loan.  10 year loan which we will pay off in 5.  (Advantage was we got everything we wanted done at once including the Airedale Activity Area)

Link to comment
Share on other sites

7 minutes ago, Scrapr said:

 i would do your credit union. I have heard they have become one of the biggest players in the market. But your loan will be sold to a servicer almost upon closing. So it almost doesn't matter. You aren't going to have the opportunity to go down to your local lender & ask for some leeway. Have you talked w/a mortgage broker?

You are wise.  

<I am not kidnapped, or held hostage.  I was not forced to type this>

 

  • Haha 2
Link to comment
Share on other sites

Credit unions. Most retain mortgage servicing rights which means if the sell the loan to Fannie or Freddie, your payments will still go to the credit union and they will handle the escrow (tax and property tax payments) so you don’t have to. 

Link to comment
Share on other sites

9 minutes ago, Scrapr said:

 i would do your credit union. I have heard they have become one of the biggest players in the market. But your loan will be sold to a servicer almost upon closing. So it almost doesn't matter. You aren't going to have the opportunity to go down to your local lender & ask for some leeway. Have you talked w/a mortgage broker?

Now we don't intend to need any leeway but I like the idea of my loan staying with my hometown bank.  They actually had a document to sign for that so it must be something they use to keep some customers.

Link to comment
Share on other sites

2 hours ago, bikeman564™ said:

I refi'd w/ Quicken several years ago when my mortgage was upside down. I thought about it again lately, but now interest is back over 3%. If it goes down to 2% I'll do it. Homes are selling, so I don't see it dropping.

We just refi's with Penny Mac and got sub 3.  I think it was 2.8 or something like that?

  • Like 1
Link to comment
Share on other sites

6 minutes ago, bikeman564™ said:

Nice. I'm at 4.375% now. 2.8 would of helped. But currently I think I could only get down to 3.3 or so, which may not make it worth it. It would require some figurin'

We had to go up in years slightly to get the reduced rate, but we plan on keeping payments the same (or more).  It dropped us almost 200 a month.  We can increase what we WERE paying by 200 a month and have this thing paid off pretty quick, like 14 years.  But the fact that our new minimum monthly payment is so much lower may come in really handy as we start to think about college for 2 kids.

  • Like 1
Link to comment
Share on other sites

3 minutes ago, Parr8hed said:

We had to go up in years slightly to get the reduced rate, but we plan on keeping payments the same (or more).  It dropped us almost 200 a month.  We can increase what we WERE paying by 200 a month and have this thing paid off pretty quick, like 14 years.  But the fact that our new minimum monthly payment is so much lower may come in really handy as we start to think about college for 2 kids.

My original mortgage was 6.375 in 2005. I refi'd IIRC aboot 8 years ago which saved me a lot of money.

  • Like 1
Link to comment
Share on other sites

5 hours ago, Dottles said:

Wouldja do it?  Why would you go with a more expensive, local lender?  Because they can put a name to your face  when you go into their office you and plead for mercy when you can't make your payments?  And if you were to go with a national lender, are you just resigning to the fact that they're going to call in the cavalry?   Do you prefer Better.com, Quicken/Rocket, or Unite Wholesale Mortgage?  I mean come on folks -- there's big sharks out there and I want to hear/read your points of view on this.

GettyImages-103337074-1280x720.jpg

 

Do you prefer a local lender or a national one?

People are doing it at a very robust rate right now. I work for one of the sharks and business is booming right now.  Two areas of growth are at opposite ends of the spectrum, our tech platform so no personal interaction and our retail sites (come in and sit with a person face to face).  

Refinancing doesn’t make a lot of sense for us but I’d consider a shark.

Link to comment
Share on other sites

19 minutes ago, Kzoo said:

We have always dealt with our credit union.  Rates have always been competitive and they have a policy of not selling mortgages.  They are super easy to deal with.

 

I liked dealing with the local credit union, that is before they changed checks, and informed the customers only through their newsletter. They bounced several checks on us, even though we had more than enough money in the account to cover those checks and then some. They never said a word, and we learned about the problem from the merchants that were effected.

  • Sad 2
Link to comment
Share on other sites

2 hours ago, Dirtyhip said:

Dots, you are in a good position rate wise.  It is at historic lows, and you are hopefully going to sell your home in an up market.  

I think I mentioned a house 300 sq/ft in the same neighborhood was pending in 3 days. I don't actually know what it went for yet. We're seeking at least $25-30K more and I hear there are bidding wars.  On average I read that homes in this area are going for 1% more than asking.  We are excited and actually have a place picked out on the other end -- and if this goes the way we hope -- we downsize into new construction and save ourselves about $500-600 a month in mortgage. 

Link to comment
Share on other sites

5 hours ago, Dirtyhip said:

We don't talk about it, because most people here have no mortgage.

With good credit, you have great power.  You can get the best rates that the market has to offer.  

If I needed to take a mortgage loan, I would likely call the local credit union or a broker.  Lending tree will even drill down the best loan rates for your scenario. They need your business, and if you have 750+ credit rating, they will fight for your business.

For the first time in my life, I called a mortgage broker who works with one of the national ones and they are offering up a 2.5 rate on a 30 year loan for about $2200 in points. That seems like an incredible deal and it could get better in another 3-4 weeks or so.   

Link to comment
Share on other sites

25 minutes ago, Dottles said:

I think I mentioned a house 300 sq/ft in the same neighborhood was pending in 3 days. I don't actually know what it went for yet. We're seeking at least $25-30K more and I hear there are bidding wars.  On average I read that homes in this area are going for 1% more than asking.  We are excited and actually have a place picked out on the other end -- and if this goes the way we hope -- we downsize into new construction and save ourselves about $500-600 a month in mortgage. 

Your payment will go down, but you will be making double payments while it is built.  Those payments are usually interest only.

I am concerned with building, as materials are rising faster than ever.  I would expect to pay more than a quote, unless you can buy all your materials immediately.

Link to comment
Share on other sites

23 minutes ago, Dirtyhip said:

Your payment will go down, but you will be making double payments while it is built.  Those payments are usually interest only.

I am concerned with building, as materials are rising faster than ever.  I would expect to pay more than a quote, unless you can buy all your materials immediately.

I already have a deposit on a place so that purchase price is locked. Yay!  Buying down the rate makes sense if you are going to live there long enough.  By my calculations, I would need about 2.3 years to pay back the initial cost in the savings I get monthly -- which in this market is a gamble -- as I could lose my job and be forced to sell early (but then I got bigger problems than losing $2100 or more on a buy down).  I aim to pay my closing costs myself as the goal here is to get the lowest mortgage possible as I hope it to be the last place we need to be.  Screw APR.  So in my view, that $2,100 can be spent now to get a lower rate later or that $2100 could be spent as an additional payment.  Since my goal would be to eventually double down or realistically, maybe 1.5 down on monthly payments, everything after 2.3 years appears to be a win. 

Regarding new construction -- you bring up a good point.  We did slightly think of this but the ultimate trumping card was that if we are to grow old in this home, we don't want any major repairs.  One of the driving factors for us to sell (besides the insane market) is this house is just too big for us and so is the mortgage and repairs.  We are constantly taking out money to repair and I'm sick of being on that hamster wheel.  I want to move into a place where I know I shouldn't have any major repairs required in the next 15-20 years.  That is, all the money going out for that endless cycle on fixing this 50 year old home now can be put down on the new principal. 

We want more time and money for biking and leisure.  

Link to comment
Share on other sites

14 minutes ago, Dottles said:

I already have a deposit on a place so that purchase price is locked. Yay!  Buying down the rate makes sense if you are going to live there long enough.  By my calculations, I would need about 2.3 years to pay back the initial cost in the savings I get monthly -- which in this market is a gamble -- as I could lose my job and be forced to sell early (but then I got bigger problems than losing $2100 or more on a buy down).  I aim to pay my closing costs myself as the goal here is to get the lowest mortgage possible as I hope it to be the last place we need to be.  Screw APR.  So in my view, that $2,100 can be spent now to get a lower rate later or that $2100 could be spent as an additional payment.  Since my goal would be to eventually double down or realistically, maybe 1.5 down on monthly payments, everything after 2.3 years appears to be a win. 

Regarding new construction -- you bring up a good point.  We did slightly think of this but the ultimate trumping card was that if we are to grow old in this home, we don't want any major repairs.  One of the driving factors for us to sell (besides the insane market) is this house is just too big for us and so is the mortgage and repairs.  We are constantly taking out money to repair and I'm sick of being on that hamster wheel.  I want to move into a place where I know I shouldn't have any major repairs required in the next 15-20 years.  That is, all the money going out for that endless cycle on fixing this 50 year old home can that we want to be putting down on the new principle. 

We want more time and money for biking and leisure.  

What I meant by rising costs is that a contruction loan is often started with an estimate.  There can be cost over runs, like the parabolic rise of OSB and things like that.  

When are you breaking ground on the project?  Has that already happened?

Link to comment
Share on other sites

1 minute ago, Dirtyhip said:

What I meant by rising costs is that a contruction loan is often started with an estimate.  There can be cost over runs, like the parabolic rise of OSB and things like that.  

When are you breaking ground on the project?  Has that already happened?

I have signed a purchase agreement and have put $3000 down.  It's expected to be completed and closed on by December 1st.  So if their costs go up -- not my problem.  

 

Yeah, the cart got ahead of the horses here.  It wasn't supposed to happen.  We were supposed to live with her mother for another 2-3 months longer and shore up money.  But then we found something we both really liked and could see ourselves living there.  That's really powerful.  Once you get that under your skin, it's hard to remove.  And these places were going fast.  We waited on it a week and it went from 3 available down to 1 so we decided to reach out and grab it. Yes, there's some risk.  But I feel confident this place will sell in 6 weeks -- and if it doesn't, then we may be out the $3000 -- although we probably get it back because are intent was to move in there but we just couldn't get our place sold.  TBD...

Link to comment
Share on other sites

1 minute ago, Dottles said:

I have signed a purchase agreement and have put $3000 down.  It's expected to be completed and closed on by December 1st.  So if their costs go up -- not my problem.  

Yeah, they could screw you on the delivery date, though.  I remember in the "boom" times of the 1999 housing expansion, a delivery date was usually an especially wishful WAG. Six month or more delays due to material and labor shortages were the norm.

Link to comment
Share on other sites

19 minutes ago, Razors Edge said:

Yeah, they could screw you on the delivery date, though.  I remember in the "boom" times of the 1999 housing expansion, a delivery date was usually an especially wishful WAG. Six month or more delays due to material and labor shortages were the norm.

Actually, to be fair, that's what I am hoping. The more time I get to suffer at her mom's, the more money we save. I mean thousands of dollars. These one floor homes were just going fast and we took the chance. But a 6 month delay and I am in fat city. Even a 3 month delay and my life get's considerably easier.

Link to comment
Share on other sites

Also, since I can't lock into a rate for at least another month -- the mortgage rate is going to go down.  Historically, the prime lending rate closely follows the 10 year treasury bond and there's room for improvement there.  I suspect these rates will continue to drop even further.  I hope anyway.  And even if they don't, they're certainly not going to get much worse and since we are in record territory already -- I see nothing but a win, win, and win.  Unless I lose my job -- then I"m screwed.  That means I have to go live with her mother-in-law for an indefinite period and I can't be doing that.  I got motivation, man, to kick ass on the job.

Link to comment
Share on other sites

11 hours ago, Scrapr said:

your loan will be sold to a servicer almost upon closing. So it almost doesn't matter.

This, and the 'almost' doesn't belong.  Your loan is underwritten with a categorization in mind that includes LTV and D/I ratio and whether your penis is above/below average, and is packaged and sold immediately by the true funder of the loan in a pool with thousands of others in the same risk group.  You are a number, so get your number the best you can get it.  The little guy is you, look out for the little guy in this situation.

  • Like 1
Link to comment
Share on other sites

18 hours ago, Dottles said:

Actually, to be fair, that's what I am hoping. The more time I get to suffer at her mom's, the more money we save. I mean thousands of dollars. These one floor homes were just going fast and we took the chance. But a 6 month delay and I am in fat city. Even a 3 month delay and my life get's considerably easier.

You may be able to mention to the builder that if he throws in a few extra perks-- nicer counter top or whatever that you are willing to suffer through a delay in completion.

Link to comment
Share on other sites

44 minutes ago, Dirtyhip said:

Is it in county or city?  Not sure about up there, but down here it is best for taxes to live in the county.

 

And seemingly "easy" to guesstimate.  For my area, they seem to always want to hit a tax NUMBER each year, so the rate is tied to the assessment value.  If the assessment goes up, the rate stays the same or drops a smidge, but no matter what, the taxes (number) for the year will be last year plus a small % increase. 

So, if your home is valued at $100,000 and your annual property tax is $1,000 (1%), they likely will want $1,030 the next year and $1,061 the next etc. to build in a 3% increase of whatever.  That means, either they are also bumping up you assessment and/or bumping up the rate to get there.  They like to bump assessment value (less pushback), but that may only be allowed every few years or so (and is often something an owner can appeal).

Link to comment
Share on other sites

Just now, Dottles said:

I checked it out. But I got duped into believing Redfin. They listed the naked property and not the built on property.

Current tax data.  There is no house yet.  

My land tax is about $300 and it will go way up when I add 150K to the land value.

  • Like 1
Link to comment
Share on other sites

1 minute ago, Dottles said:

I checked it out. But I got duped into believing Redfin. They listed the naked property and not the built on property.

Effers!

I guess, though, that is the right rate right now?  But, slap a few hundred thousand in improvements to a lot, and the taxes should go up :D

Link to comment
Share on other sites

31 minutes ago, Dottles said:

Yep. No escape up here in this state. Property tax is the primary revenue.

Seems the info is there for you.  Likewise, it is fairly straightforward.  Seems you guys are only slightly higher than the norm, but not too high.  We're at 1.15% compared to your 1.128%.

Estimating Your Property Taxes

You can roughly estimate what your future property taxes might be if you know the "assessed value" of your property and the most recent tax levy rate. Next year’s levy rates will change, however, use of the most current levy rate is appropriate for an immediate future best guess calculation. You will need to reference your property’s Tax Code Area (see Real Property Search or Tax Statement) and determine the most recent tax levy rate for that Tax Code Area in the Tax Book. For example, if the new assessed value of your property is $100,000 and the Tax Code Area is 0100 (most of the City of Bellingham) and the most recent Tax Levy Rate is $11.2831080518 per thousand dollars of value:

($100,000 / 1000) x 11.2831080518 = $1,128 estimated tax

Link to comment
Share on other sites

5 hours ago, Razors Edge said:

Seems the info is there for you.  Likewise, it is fairly straightforward.  Seems you guys are only slightly higher than the norm, but not too high.  We're at 1.15% compared to your 1.128%.

Estimating Your Property Taxes

You can roughly estimate what your future property taxes might be if you know the "assessed value" of your property and the most recent tax levy rate. Next year’s levy rates will change, however, use of the most current levy rate is appropriate for an immediate future best guess calculation. You will need to reference your property’s Tax Code Area (see Real Property Search or Tax Statement) and determine the most recent tax levy rate for that Tax Code Area in the Tax Book. For example, if the new assessed value of your property is $100,000 and the Tax Code Area is 0100 (most of the City of Bellingham) and the most recent Tax Levy Rate is $11.2831080518 per thousand dollars of value:

($100,000 / 1000) x 11.2831080518 = $1,128 estimated tax

Yep. That's the one I did last night after I realized Redfin was to good to be true.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...