Where To Find Lowest Mortgage Rates For Second Home / Vacation Home? (Phoenix: lenders, broker)

[gil_happy]

Originally Posted by Steve Hueter

Use Bankrate.com to see what the going rate is but then find a local mortgage broker to assist. Stay away from the big guys ie BofA, Wells, etc. They move to slow and only sell their own products. I have several lenders that I have used in the past and would be happy to forward their contact info.

I agreed with the advice 100%... in fact I can't believe anybody would ever use the big guys for anything. After switching to a credit union about 3 years, I found that 'everything' was cheaper, from fees, rates, etc. Also, many credit unions belong to the CO-OP shared branching network which means you can find a branch in almost any city across the entire US.

[patrick85395]

Originally Posted by Steve Hueter

Use Bankrate.com to see what the going rate is but then find a local mortgage broker to assist.

I disagree. My local broker quoted me 4.5% conventional or 3.75 FHA (which means I'd still have then mandatory mortgage insurance). . . .even though I have over 20% equity.

I went to bankrate.com and was quoted 3.7% for a conventional loan. Broker is in California and all paperwork is done online. If I had stayed local, I would have paid too much.

[gil_happy]

Originally Posted by patrick85395

I disagree. My local broker quoted me 4.5% conventional or 3.75 FHA (which means I'd still have then mandatory mortgage insurance). . . .even though I have over 20% equity.

I went to bankrate.com and was quoted 3.7% for a conventional loan. Broker is in California and all paperwork is done online. If I had stayed local, I would have paid too much.

Bankrate.com seems to have the best rates and lowest closing costs and / or lender credit towards closing costs - they have been the cheapest so far.

[Zippyman]

Originally Posted by gil_happy

Bankrate.com seems to have the best rates and lowest closing costs and / or lender credit towards closing costs - they have been the cheapest so far.

The "best rates" are worthless if they can't *close* the deal, and dealing with lenders via fax and phone *only* can be hit or miss. I'd personally pay a little extra to have the ability to speak to the people kinking your deal in person, if necessary. If you've never had a deal get kinked for some inane/ stupid reason, I can see the appeal of saving a couple bucks a month. Having had issues with both closing & servicing mortgages with big banks in the past, they couldn't get me to ditch my local credit union if the rate was 0%.

I have zero confidence in the big bank's ability to close or properly service a mortgage & only slightly higher confidence in online lenders (all of whom are going to immediately sell your loan after closing, nearly always to one of the McBanks). The only ways the McBanks know how to "make" money is through graft, outright theft, or dumping employees by the thousands.

[gamebird98]

How does a bank determine "primary residence"?

[GeneR]

I recommend Sebonic Financial. Not only reputable and very, very competitive rates but extremely low fees. Find them online.

[gil_happy]

Originally Posted by GeneR

I recommend Sebonic Financial. Not only reputable and very, very competitive rates but extremely low fees. Find them online.

Gene, this is exactly who I'm working with... we will see how things go over the couple of days as I have submitted all of the necessary paperwork. Very, very competitive rates and low fees as you have indicated.

[gil_happy]

Originally Posted by Zippyman

The "best rates" are worthless if they can't *close* the deal, and dealing with lenders via fax and phone *only* can be hit or miss. I'd personally pay a little extra to have the ability to speak to the people kinking your deal in person, if necessary. If you've never had a deal get kinked for some inane/ stupid reason, I can see the appeal of saving a couple bucks a month. Having had issues with both closing & servicing mortgages with big banks in the past, they couldn't get me to ditch my local credit union if the rate was 0%.

I have zero confidence in the big bank's ability to close or properly service a mortgage & only slightly higher confidence in online lenders (all of whom are going to immediately sell your loan after closing, nearly always to one of the McBanks). The only ways the McBanks know how to "make" money is through graft, outright theft, or dumping employees by the thousands.

Thanks for this information.... I never thought about these points, but I have asked the lender (particularly the part about reselling the loan).

[DetroitN8V]

Originally Posted by gil_happy

Bankrate.com seems to have the best rates and lowest closing costs and / or lender credit towards closing costs - they have been the cheapest so far.

Bankrate.com is not a lender. They are a referral source for brokers and lenders.

[GeneR]

Originally Posted by gil_happy

Thanks for this information.... I never thought about these points, but I have asked the lender (particularly the part about reselling the loan).

It’s unusual for ANY lender to hold a loan. Almost all sell their loans to Freddie Mac, Gennie Mae. I have zero worry about a loan being sold. Loans are just another commodity packaged and sold in the secondary market.