My New Blog

Many people ask me about internet shopping for a loan. My problem with this has always been that...

1) those low rates are usually deceptively advertised "$200,000 loan with a monthly payment $399" Read--Option ARM

2)Their loan officers are $10 an hour employees with often little experience in the industry or with loans that don't fit into a neat box and

3)their offices are not local, where to you go for remediation if you are unhappy?

A client and good friend of mine needed to refinance his existing home. I invited him to go to an internet site, the one with tree in the name, and get four mortgage quotes. He did and emailed the results to me. The quotes we're semi-competitive until I read the fine print. The closing cost estimates didn't include title and the computer didn't catch that this was a cash out transaction. Translation--closing costs on any of the terms quoted on this $200k deal $6,300. I went shopping on the wholesale side and found that I could match any of the quoted rates. And get this, (and I was amazed myself), for $1,000 closing costs. Folks, I know the "when banks compete, you win" motto seems comforting, but I believe it is just another way to present a united front of costs and rates that are too high. If you need a loan, shop the internet, and then run the figures by me. You will be glad you did.