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

[gil_happy]

Hello,

I currently live in the Atlanta area and I'm looking to purchase a second home / vacation home in the Phoenix area. I'm looking to find a lender who offers the most competitive rates along with low closing costs. Here are some details about me:

- 800+ credit score
- looking to purchase a single family home (not a condo)
- planning to purchase a home between 300k and 425k
- my credit union in Georgia who normally offer incredibly competitive rates, unfortunately they do not offer mortgages in Arizona (they do offer in places like Florida and California)

What is the best way to find the lowest rates? Do I go to a local credit union in Phoenix, is there a web site (local or national), etc?

Thank you in advance!

[patrick85395]

Try bankrate.com

[gil_happy]

Originally Posted by patrick85395

Try bankrate.com

Thanks... I am certainly familiar with them, but wasn't sure if this was owned by one of the big guys? Meaning if is was, say owned by Bank of America, maybe the rates weren't as competitive as a credit union or smaller bank that is not in the bankrate.com network?

From a quick check, it looks like there are pretty good rates based upon my specifics.

[crystalys]

We went with Desert Schools Federal Credit Union which is local to Arizona. At the time, 2 years ago, they had the lowest closing costs and the best rates than other credit unions or banks. They also might still have a "special" deal where they reimburse the cost of the appraisal at closing. They also have "shared" banking and ATM privileges at other credit unions throughout the country.

https://www.desertschools.org/member...ools/locations

[gil_happy]

Originally Posted by crystalys

We went with Desert Schools Federal Credit Union which is local to Arizona. At the time, 2 years ago, they had the lowest closing costs and the best rates than other credit unions or banks. They also might still have a "special" deal where they reimburse the cost of the appraisal at closing. They also have "shared" banking and ATM privileges at other credit unions throughout the country.

https://www.desertschools.org/member...ools/locations

Thank you for this.... I will look into this CU.

[Zippyman]

Originally Posted by gil_happy

Thank you for this.... I will look into this CU.

+1 for desert schools, not sure if they offer mortgages for vacation properties, but they were the best deal by far for our investment properties. Reasonable appraisals, quick closings & no problems with lending "overlays" like many of the big banks use.

That said, my little bro worked in I.T. for a different credit union for years, that "shared banking" thing is a great idea, but the system is "down" more often than it's up. You could still mail payments or transfer money online, but I wouldn't count on "shared banking" - it just doesn't work much of the time.

[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.

[Newporttom]

Originally Posted by Zippyman

+1 for desert schools, not sure if they offer mortgages for vacation properties, but they were the best deal by far for our investment properties. Reasonable appraisals, quick closings & no problems with lending "overlays" like many of the big banks use.

That said, my little bro worked in I.T. for a different credit union for years, that "shared banking" thing is a great idea, but the system is "down" more often than it's up. You could still mail payments or transfer money online, but I wouldn't count on "shared banking" - it just doesn't work much of the time.

Every time I ask about refinancing, the rates are so much higher on an investment property. I have 4.875% and can't get anything that makes it worthwhile to refinance. Any different for Desert Schools?

[crystalys]

Quote:
Originally Posted by Zippyman View Post
+1 for desert schools, not sure if they offer mortgages for vacation properties, but they were the best deal by far for our investment properties. Reasonable appraisals, quick closings & no problems with lending "overlays" like many of the big banks use.

That said, my little bro worked in I.T. for a different credit union for years, that "shared banking" thing is a great idea, but the system is "down" more often than it's up. You could still mail payments or transfer money online, but I wouldn't count on "shared banking" - it just doesn't work much of the time.

Originally Posted by Newporttom

Every time I ask about refinancing, the rates are so much higher on an investment property. I have 4.875% and can't get anything that makes it worthwhile to refinance. Any different for Desert Schools?

Yes, the property I mentioned in the previous post is a vacation/second home. So Desert Schools will do a mortgage on them.

Anything that is not a primary residence is always going to have a higher interest rate. Investment properties will be even higher than vacation homes. The only way to know if it is worthwhile to refinance through Desert Schools is to contact them. Every mortgage situation is different and the qualifications will be individualized as well.

[smoochaz]

You can always compare/negotiate your rate also get details on closing costs/fees that's where usuallyis a huge difference. I was just talking about this topic with one of my mortgage lender partners and he said as you know for a 2nd home you need a larger down payment. With an adjustable mortgage you can get in the 2's depending on other qualifier points. You can also use your banker as well, BOA, Chase, WF, if you have long history they would work with you from your local location to get you the loan here ... bottom line - shop around!