Posted by SamIam_CA on 5/11/05 12:40pm
Msg #37127
Comparing Loan Rates
I understand that it would be completely wrong & unethical of us to discuss the rate with the borrower. We should not advise them if their rate is high or low etc. & we certainly should not let them know where they could have received a better rate.
That said...Is it also unethical for us to compare rates? If I were to ask, "Named Lender just did a loan for X% - did anyone close with a lower rate in the last week?" would that be wrong? I'm shopping for my own re-fi.
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Reply by rlogan-ca on 5/11/05 12:48pm
Msg #37129
From what I understand, the rate depends on the borrowers credit rating, financial stability
etc.
Lending Tree is supposed to find the "best rate" available to you.
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Reply by Kiso on 5/11/05 12:56pm
Msg #37130
Just tell them, "Oh, I'm not sure....hey I forgot my stamp in the car......" change the subject or something lol......you're not supposed to discuss ANYTHING with them. 
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Reply by SamIam_CA on 5/11/05 1:04pm
Msg #37132
Re: Comparing Loan Rates with other notaries
***Is it also unethical for us to compare rates?***
I'm asking if it is unethical for 'us' - as in the notaries here on the NotRot message board to rate shop amongst ourselves.
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Reply by MaggieMae_CA on 5/11/05 1:13pm
Msg #37135
Re: Comparing Loan Rates with other notaries
I don't believe so. I think (if I'm correct) that YOU want to refi and are asking what lenders we've seen have the best rates. You're asking here (in my opinion) is like having a cup of Starbucks with a friend (nope, don't have stock in the company) and talking about rates.
The reason we can't discuss rates AT A SIGNING is because we could jinx the whole deal if the borrower catches wind that he/she/they could get a lower rate with another company.
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Reply by jenlyn on 5/11/05 1:37pm
Msg #37139
Re: Comparing Loan Rates with other notaries
I get what you are asking, you are shopping for yourself. I am a loan officer and rates change daily in the mortgage business and other factors are taken into consideration when you actually get the final rate and the rate quotes at the time you call. When you rate shop first call your own bank or credit union, then all 2 major banks. Make sure you give all details of your scenarios such as refinance, do you want cash out, vaule of home and home much you own on your current loan. If you do not give details you will not get the same information these details make all the difference in getting the right rate.
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Reply by Melody on 5/11/05 4:45pm
Msg #37183
Jenlyn is right
In terms of banks offering Helocs - the best ones I have seen come from Ing, Chase, and Citibank. The Citibank one is only good if you are willing to go with an ARM.
I'm stating to look for a loan, too. I want to purchase this fall.
While doing signings, I keep an eye out for the companies giving the best loans. I have narrowed the sources down to two brokers who give EXCELLENT deals.
One of them does business nationwide: www.BrenmorLoans.com
Ask for Brian ONLY. He is very honest. You may get Mario. Mario is honest but he doesn't work as hard for the borrower as Brian.
Tell Brenmor their Bellingham notary sent you.
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Reply by Sam I am on 5/11/05 7:17pm
Msg #37207
THANX Melody!! n/m
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Reply by Mike/NJ on 5/11/05 1:22pm
Msg #37136
ditto with the above statement. Many factors go into figuring the interest rate. Not our job too talk about and compare.
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Reply by Joan-OH on 5/11/05 2:14pm
Msg #37153
LENDING TREE - Don't go there!
My Niece applied with Lending Tree. They sold the lead to over 30 companies. After they all ran her credit report @ approximately 10 points a ding, her credit rating was destroyed making her ineligible for everything but subprime lenders. It took her over a year to clear it up.
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Reply by Art_MD on 5/11/05 2:16pm
Msg #37155
Re: dings on credit
I believe that all credit check in a 30 day period count as one. Could be wrong.
Art
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Reply by Joan-OH on 5/11/05 2:50pm
Msg #37162
Re: dings on credit
The problem was she was refinancing $90,000 for her house, but also owned land worth about $50,000 with a $20,000 mortgage on it. There was no where to explain this lien on this other property so she put it in the comments. The comments were never given to the lenders they gave her info to. So, to them, it looked like she had a $90,000 lien & $20,000 lien on a $50,000 piece of property. She got DECLINED 30+ times. I think the declines were what destroyed her credit.
The problem as I see it, is they advertise "up to 4 lenders" which is very vague. Her's went to MANY lenders. Four DECLINES aren't half as bad as 30+.
Joan-OH
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Reply by Victoria/FL on 5/11/05 5:49pm
Msg #37186
Sam - start with the larger financial institutions
in your area. They will have competitive rates, plus you won't have to pay a brokerage fee (NEVER would I pay that - it's like throwing away money). A broker is only needed when you have questionable credit or need creative financing. Although most banks now have no-income verificatiion and or stated income.
I agree with the above poster, make sure you give them all exactly the same information so that you receive back comparable rates. One lender may quote their 15-day rate (the lowest) and another lender may quote their 60-day rate (which would of course be higher). If it takes 30 days to close the loan, the 15-day rate really doesn't do you much good.
I always speak with as many lenders as possible and go with the one that returns my calls promptly and seems to know what they're talking about. This may not always be the lowest rate, but I feel better knowing that I'm going to get taken care of, instead of having a loan officer that doesn't return my calls. Remember, on $100,000 a 1/4 percent rate increase is only around $15 per month on a 30 year loan.
Good luck! Given an excellent credit rating, you should be able to get under or close to 6% for a 30-year fixed. I saw a 15-year fixed last night for 5.375% - sweet!
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Reply by Melody on 5/11/05 6:42pm
Msg #37195
I would go with a broker
I respectfully disagree with Victoria.
Banks only show you the few loans they offer. Good brokers have access to hundreds of loan packages.
Many brokers can get the lender to pay for most if not all of their fees.
Even if I have to pay the broker $1,000 I know that I will save that much on the first year of interest on the best deal I could get with the local or big lenders here.
By the way - I suggest you pay your own property taxes and insurance.
Has anyone else noticed how the number of months of "cushion" the lenders are giving themselves has been increasing? I have recently been seeing 5 to 7 months!
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Reply by Sam I am on 5/11/05 7:51pm
Msg #37212
Re: I would go with a broker
***I suggest you pay your own property taxes and insurance.***
Good tip! Thank you.
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Reply by Victoria/FL on 5/11/05 8:29pm
Msg #37222
Re: I would go with a broker
How dare you! Just kidding.
Good point, however in my experience the only loans I have seen from brokers are way above average interest rates. Typically 2-4% higher - that's a huge difference. I've been seeing 2 yr LIBOR ARMS at 7.5% - that's crazy! Of course who knows what the borrower's credit score was like. Most brokers that I know deal in B&C paper and banks have a plethora of programs now. I come from a 13 year banking background, so of course I'm going to root for the banks!
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Reply by Sam I am on 5/11/05 7:21pm
Msg #37208
Re: Sam - start with the larger financial institutions
Dare I ask - what lender had the 5.375% or are we getting back into the 'proprietary' information area that the posters above were concerned about?
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Reply by Victoria/FL on 5/11/05 8:31pm
Msg #37224
Re: Sam - start with the larger financial institutions
Yes, it probably would be proprietary info - I'm sure if you shop around you can find a good rate. I was just reading an article this weekend that indicated that rates aren't likely to jump that high this year that everyone is freaking out about.
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Reply by christi/socal on 5/12/05 2:00am
Msg #37260
thanks for asking that, it's something I've been wondering
about as well. there do seem to be companys who have alot of high "costs" out there. Is there a way out there somewhere to find out which companys are more competitive? or do borrowers just have to cross their fingers???
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Reply by Eatha/PA on 5/12/05 9:11am
Msg #37275
Re: thanks for asking that, it's something I've been wondering
I'm buying a house right now. Finding a good interest rate and the best closing costs is like finding the best phone service or gas or electric supplier - you have to like to take the time to shop around and compare elements that are not really comparable (camera phone $79.95 first 30 mins long distance free then 10-cents a minute vs. non-camera phone $29.95 5-cents a minute long distance no free mins plus $6 month flat fee). I don't have the time or the disposition to do that.
Ma Bell, we miss you!
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