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03-03-2009, 01:12 PM
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69 posts, read 272,784 times
Reputation: 56
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Hi everyone, a friend of mine purchased his loan via Absolute Mortgage and wants me to atleast get a preapproval. However, a broker I had called to get a feel of his rates said "he never has in 10 years heard of this company advises against internet lenders"
I do like their rates, but I would love to see if anyone here has dealt with them and how your experience with Absolute Mortgage turned out...
Thanks!
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03-03-2009, 05:58 PM
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69 posts, read 272,784 times
Reputation: 56
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bumppppp ...anyone?  |
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03-04-2009, 08:33 PM
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87 posts, read 358,655 times
Reputation: 35
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Never heard of it .. either go thru a broker that has been recommended / used by a friend ... or go thru one of the big banks ...
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03-05-2009, 11:03 AM
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114 posts, read 438,892 times
Reputation: 30
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on the finance forum of fatwallet.com, many have used absolute mortgage and seem to think they're fine and have some of the best rates. i would definitely shop around and see. i don't think it'd hurt to look into them.
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03-05-2009, 03:20 PM
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69 posts, read 272,784 times
Reputation: 56
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Thanks nerak! Seems like I will give them a second look  |
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03-06-2009, 02:57 PM
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105 posts, read 302,494 times
Reputation: 51
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I have been going with this guy and he seems pretty honest and decent.
Closing next week.
I think I have talked to Absolute and had problem at closing so I didn't sign. Estimate was different than at the closing. Just lost appraisal money since they wouldn't give it to the new mortgage company that I wanted to change to.
Andyk@1stEmpireFinancial.com |
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01-30-2010, 04:57 AM
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2 posts, read 10,239 times
Reputation: 10
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Avoid Absolute Mortgage
Absolute Mortgage (in Pennsylvania) told us we had a rate-lock on a very low rate. They later told us that our loan was approved for closing. In the meantime, interest rates rose during the rate lock-in period. While still in the rate-lock period, we could not get them to send us the closing documents.
Apparently the lender “Flagstar Bank” walked away from the loan to avoid giving us the very low rate. Either Absolute Mortgage lied about the rate-lock or Flagstar bank don’t honor their rate-lock commitments. The Pennsylvania Department of Banking are currently investigating the business practices of Absolute Mortgage.
Last edited by Green Irish Eyes; 01-30-2010 at 08:38 AM..
Reason: Disparaging comments are not allowed.
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01-30-2010, 10:39 PM
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20 posts, read 49,732 times
Reputation: 18
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They have great reviews on Fatwallet. I think you'll be fine.
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02-01-2010, 01:21 PM
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Location: New York
2,251 posts, read 4,392,451 times
Reputation: 1610
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Quote:
Originally Posted by FindAnHonestBroker
Absolute Mortgage (in Pennsylvania) told us we had a rate-lock on a very low rate. They later told us that our loan was approved for closing. In the meantime, interest rates rose during the rate lock-in period. While still in the rate-lock period, we could not get them to send us the closing documents.
Apparently the lender “Flagstar Bank” walked away from the loan to avoid giving us the very low rate. Either Absolute Mortgage lied about the rate-lock or Flagstar bank don’t honor their rate-lock commitments. The Pennsylvania Department of Banking are currently investigating the business practices of Absolute Mortgage.
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Your broker is lying to you. If a he has you locked in and the rate goes up, he gets less YSP (yield spread premium).
Over the years wrote many loans through Flagstar, a rate lock can be for 15, 30, 40, 50, 90 days. To lock a rate in the interest rate is priced accordingly.
On a 30yr Fannie Mae Loan see last weeks Flagstar pricing sheet http://img.en25.com/Web/Flagstar/RCR0120.pdf (broken link)
What rate was he promising you......lol.... 
Call him up and mention you are looking at a Flagstar pricing sheet...... 
This is how people get banged on the backend - on the good faith estimate, line 804 loan origination fee can be as high as 5% of the loan amount (some states are higher). Plus the broker sells you a higher rate than you qualify for, the brokers get paid by the bank in YSP. Knowing how much they are getting in YSP - say you want line 804 to be $zero.
Depending on how you feel - you can discuss this with him, asking about YSP and stay with them. Or you could tell them because they were not honest with you, you want the appraisal to be resigned. Then get another broker. I think there is a time limit for them to release an appraisal 30 to 90 days. If you write a letter saying they lied to you, then cc the attorney general of the state of PA - you should get action for them.
If you have a mortgage now -it will cost less in closing costs to do a short refinance staying with the same lender. If this is a new purchase - your gonna be in this loan for the next 30 to 40 years. Waiting a little extra time to get the right payment is worth it.
I do not think interest rates are going to sky rocket up anytime soon - look at the data Interest Rate Trends ~ Historical Graphs for Mortgage Rates
Good Luck... 
...
Last edited by Modification Specialist; 02-01-2010 at 01:59 PM..
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02-01-2010, 01:33 PM
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Location: Plano, Texas
1,676 posts, read 6,536,672 times
Reputation: 688
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Quote:
Originally Posted by Modification Specialist
Your broker is lying to you. If a he has you locked in and the rate goes up, he gets less YSP (yield spread premium).
Over the years wrote many loans through Flagstar, a rate lock can be for 15, 30, 40, 50, 90 days. To lock a rate in the interest rate is priced accordingly.
On a 30yr Fannie Mae Loan
A 15 day lock to rate can be 4.75% - the broker will get .99345% in YSP.
A 30 day lock to rate can be 4.75% - the broker will get .99297% in YSP
A 40 day lock to rate can be 4.75% - the broker will get .99138% in YSP
A 70 day lock to rate can be 4.75% - the broker will get .98535% in YSP
See a Flagstar pricing sheet http://img.en25.com/Web/Flagstar/RCR0120.pdf (broken link)
This is how people get banged on the backend - on the good faith estimate, line 804 loan origination fee can be as high as 5% of the loan amount (same states are higher). Plus the broker sells you a higher rate than you qualify for, the brokers get paid by the bank in YSP.
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flagstar didnt walk away because they didnt want to give you a low rate. If the rate is locked, the bank will honor it through expiration. Seems your loan officer is lying. Probably didnt have the loan locked and pricing got worse so could no longer provide the rate quoted with fees quoted.
Also, the pricing posted above are at a cost to the consumer. From above, the 15 day lock is costing 100-99.345= .655. If a consumer wanted that rate, they would have to pay all costs including 1 point to the originating loan officer and an additional .655 in discount to buy that rate.
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