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What is the best lender with the cheapest rates? Searching the Internet their are thousands of lenders. How can you know you are looking at the best rates?
Why would you want to do this? I did this once and I regretted it.
A 30 year rate is superior as you have way more flexibility in deciding if you want to double up the payments every month (to mimic a 15 year payment plan) and thus bringing the effective interest rate down.
However, the 30 year gives you flexibility, should you need additional cash, you can pay the smaller 30 year payment when times are tough, to save cash.
After having a 15 year, I'll only do 30 year as I have full control over how much to pay, and affect the interest rate that I would be charged over the loan term.
On one of my properties that has the 15 year, I have a ton of equity, but I can't tap the equity to use it as lenders right now are really not doing cash out refinances. So the only way for me to tap that equity is to sell the home. I'd much rather have the cash right now at cheap rates so I can use the cash to invest or buy more real estate. Unfortunately I'm stuck and I can't.
Last edited by AndroidAZ; 07-16-2020 at 09:38 AM..
I wish there were a quick answer to that question but there is not. Most consumers will end up getting a loan from a non-bank lender like Quicken or loanDepot, a bank like Chase or Wells Fargo, a local broker, or their credit union. And there is no “best” or “cheapest” among them, despite what you’ve heard or read; it all depends. It is accurate to say that there are some loans that a bank or credit union will do better, there are some loans that a non-bank lender will do better, and some loans that a broker will do better. And there are some loans where all three are about equal and it will just be a matter of which one gives you better customer service or which one you are more comfortable with. Your personal scenario will impact where you should go: The size of your loan, the loan term, property location, property type, your credit, are you taking cash out, occupancy status, etc. If you don’t have the time or patience to conduct lender research, you can play if safe and get a Loan Estimate from a non-bank lender, a bank/credit union, and a broker. Look up “CFPB Loan Estimate” on the web and check out the example of the Loan Estimate on the Consumerfinance.gov site. The Loan Estimate is how you will make your final decision as to which lender truly has the best deal. The lender fees in Section “A” of the Loan Estimate must be 100% accurate, per federal law. Most loan shoppers call tons of lenders asking, “what is your rate”. That’s usually a waste of time and does not work. All lenders have access to the same rates, the difference is what we charge in closing fees for each rate. And the Loan Estimate is the only way to know the real fees. So, how do you find these lenders? You can start by getting a quote from the institution where you bank. Then contact one of the many non-bank lenders that advertise on TV or the web. You can find a broker by Googling “San Diego mortgage brokers”, for example, or wherever you live. By the way, a broker is not a generic term for someone that does loans. A broker is a licensed individual that arranges loans between consumers and Wholesale lenders. If this is too much work, you can just submit your information online to a lead aggregator like LendingTree or LowerMyBills. Just know that they are going to sell your information to a ton of lenders. I recommend using a separate phone number, like a virtual number, and a separate email for this. You will get tons of phone calls and messages. Listen to their pitch and take notes but, don’t let them pressure you into jumping into anything on the spot. I recommend you go to the “NMLS Consumer Access” website after you speak with them. Enter the rep‘s NMLS ID or name into the site. Every loan originator in the US must be registered in this system. You can see the company they work for, their job history, where they are licensed, and any legal actions pending against them. The consumer portal will also show if they are a non-bank lender, a bank, or a broker. Dismiss the rude or pushy ones. Narrow it down to 3, and get a Loan Estimate from each. Hope this helps. There’s actually more to it than this but I was trying to keep it short.
What is the best lender with the cheapest rates? Searching the Internet their are thousands of lenders. How can you know you are looking at the best rates?
Any meta-search engines for mortgage rates?
Im doing a cashout refi with guaranteed rate right now.. - locked in 2.875 for a 20 year - 800 credit score...shaving 4 years off my current mortgage...
You might have to go with the big guys... lenders are so busy right now.. it took me weeks to find one the small guys are all swamped....
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