Mortgage brokers..Pro's or Con's

   / Mortgage brokers..Pro's or Con's #1  

Cactus

Gold Member
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Jan 27, 2005
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Mortgage brokers..Pro\'s or Con\'s

I am looking into doing some refinancing and was wondering if a mortgage broker is a good way to find the best loan get the best deal etc.
Anyone have any suggestion tips etc when using a mortgage broker ??

Thanks

Cactus
 
   / Mortgage brokers..Pro's or Con's #2  
Re: Mortgage brokers..Pro\'s or Con\'s

There are good ones and bad ones... just be cautious of the fees they charge. We refinance our house to get it off a variable rate and went through a broker... got a fair deal IMO.

There are some good online brokers to check out... one that comes to mind is Quicken Loans... they have reasonable fees and fairly good rates, although rates have went up in the last month or so. Your FICO or Beacon score will have a lot to say about what rate you get.
 
   / Mortgage brokers..Pro's or Con's #3  
Re: Mortgage brokers..Pro\'s or Con\'s

My wife is currently managing title offices and has spent many years as a loan officer. We have also bought and sold investment propertyover the years.

SonnieP is right, there are good ones and bad regardless of broker vs bank vs online lenders. There is also more to the deal than the rate.

We have had personal experience with e-loan and Amsouth Bank. The Broker scenario gives you a number of lenders to choose from with different prorams. The key is whether or not the "Loan Arrainger" ... /forums/images/graemlins/smirk.gif is working in your best interest or thiers. Quite often thier comission will drive the product recomendations. Be careful, ask lots of questions, look for pre-payment penalties and don't let them pull your credit more than once. The more inquiries the more it negatively affects you credit score. Check the fees.

Good luck
 
   / Mortgage brokers..Pro's or Con's #4  
Re: Mortgage brokers..Pro\'s or Con\'s

My wife and I tried to use Intergrity Mortgage once......ONCE. They tried to get us to sign a deal where they got like 4000.00 to "find" us someone to loan us the money. I immediately said NO WAY. Then to add to their silly butthead ways, they had an appraisor call to schedule a time to come out........WHAT.........I was not working with them. Seems they tried to "get" my business by going forward with the plan without my authorization. Some "intergity".

Second, I have listened to the Quicken loan thing......I would not touch one with your money, much less mine. 10 years and you pay NOTHING on principal, then you pay MORE in interest than the printed rate today, NO THANKS.

Then you have those that have 125% financing.........Dont think so. If you have to sell you have to borrow again to finish paying it off, or you can not even sell. 80/20 is the least you should have. Many folks today will be shown "interest only" payments to get them interested only to find out much later that they still owe the same or more on the house they bought.

Have you tried talking to a bank, in person, one to one, with the laon officer? Even a direct mortgage company? YOU can do what the broker does a lot cheaper and may find a better deal.

The people we use now for everything do not charge us one dime. They take our apps, send it to the lender, get approved and we close. We pay no "fee". The lender pays them. My home now is on 4.25 rate/ 4.87 yeild for 15 years. I could not have gotten a better plan, and I tried. We had this for 2 years now, my home will be paid for in less than 10 years from now as we pay about 12% extra on principal per month.

Oh and dont go for those bi-monthly either, you can do that on your own, pay it off faster, and you get to keep your money in whatever you have for 2 extra weeks. Divide your house payment by 12, pay that extra each month, same money, but you pay it off faster and less cost (some actually charge you to pay more times a year).

I know someone that actually had their house on a credit card billing plan. Paid interest only if that was all he could. You never pay these off in reality.

I have done a lot of this, even sold loans at one time.......standard mortgage, monthly, 20% down at least, no fancy payment schedules, no fancy interest only etc.......just plain old mortgage is best.

Hope this at least gets you looking on your own. Many times (always IMHO) you can do better this way. Oh one more, dont let anyone charge you to do a loan app...........the only time you should pay for services is if they are going to service (give) you the loan.
 
   / Mortgage brokers..Pro's or Con's #5  
Re: Mortgage brokers..Pro\'s or Con\'s

Keep it simple. Tell all you meet:
15 or 30 year
fixed rate
no points
and that you want EVERY closing cost listed.

Then you can compare. Don't let some add points and others change term and others pad the fees. I used a broker and he got me 4.875, then I called my local hometownish bank, and they gave me 4.75! Shop em around. Debt is big business. They have more to work with than the local tractor dealer, and we woop the heck out of them for a deal! /forums/images/graemlins/wink.gif
 
   / Mortgage brokers..Pro's or Con's
  • Thread Starter
#6  
Re: Mortgage brokers..Pro\'s or Con\'s

Thanks Danny....and everyone else. Good info to say the least .... /forums/images/graemlins/cool.gif
 
   / Mortgage brokers..Pro's or Con's #7  
Re: Mortgage brokers..Pro\'s or Con\'s

Tell them this and confuse the heck out of them........that would be fun to see.

But you are correct, compare that apple to an APPLE, not a lemon.
 
   / Mortgage brokers..Pro's or Con's #8  
Re: Mortgage brokers..Pro\'s or Con\'s

I used a marriage broker once, but I didn't like the deal. He got to take almost all my money, and if she left, she got to take what was left. I shopped around and found myself a mighty fine woman.... trouble is, she married someone else.. /forums/images/graemlins/frown.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/frown.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/frown.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/frown.gif /forums/images/graemlins/grin.gif
 
   / Mortgage brokers..Pro's or Con's #9  
Re: Mortgage brokers..Pro\'s or Con\'s

Yeah the marriage broker will get you everytime! lol

The interest only deal is strictly optional and is offered with many lenders, not just Quicken Loans. Not a wise choice! Quicken offers some very low fees and a fixed rate, fixed term installment plan. They will also overnight you the paperwork to sign in front of a notary which can save you several hundred in attorney closing fees.

Also on points, this is something you have to figure out... don't just automatically say no to points. If you don't plan on refinancing again anytime soon, then it may be wise to buy down your rate with a half point or more. See how much buy down rate a point will get you. It could be worth it in the long run, all depending on your term, buy down rate, etc.
 
   / Mortgage brokers..Pro's or Con's #10  
Re: Mortgage brokers..Pro\'s or Con\'s

</font><font color="blue" class="small">(
................. They will also overnight you the paperwork to sign in front of a notary which can save you several hundred in attorney closing fees.)</font>

This might not be a good thing... The attorney is supposed to work for you, and his fee can save you many thousands of dollars if there is something in the contract that is detrimental to you as the mortgagee. Buying a home, and getting a mortgage is one of the biggest $$ investments that you will ever make in your lifetime. Don't you think that it is worth a few hundred dollars to have an attorney on your side. There is no doubt that the bank, mortgage company, or lender has lots of lawyers on their side. I would want one just for the peace of mind to know that there are no pitfalls that I don't know about. How many of us can actually read a legal document and understand the consequences of the meaning of one word vs. another word that sounds similar. I know that we all tend to crack lawyer jokes, but a good lawyer is there to protect your interest and is worth his weight in gold.
The Honorable Junkman, Esq., Ersatz
 

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