Do people have experiences making a home purchase using an internet/national lender, e.g., AmeriSave, National Mortgage Alliance, PenFed, etc? Did you use that to shop for GFEs to negotiate with the local lender? Did you also shop around locally for rates as well?
I just received the GFE and initial fees worksheet for a 20% down 30-year fixed loan from the local mortgage company (recommended by our agent) that provided the pre-approval for our home offer.
The local company's GFE Adjusted Origination Charges shows $3115 where looking at the fee worksheet lists $2100 origination + $1000 underwriting fees as the large items. They provided 4 initial fees worksheets with 2 options of rates&credits and impound/not. They provide an additional $520 credit for paying taxes/insurance through the impound account.
Local: 3.625%, $2335 net lender fees ($780 credit), no impound
Local: 3.625%, $1815 net lender fees ($1300 credit), yes impound
Local: 3.750%, $1295 net lender fees ($1820 credit), no impound
Local: 3.750%, $775 net lender fees ($2340 credit), yes impound
For reference, but probably shouldn't affect the loan rate, I estimate the other settlement charges to be around $4000 with the large items: $1200 owner's title insurance, $700 inspections (home/pest/heat), $550 transfer charges (already split half with seller), $500 appraisal, $500 lender's title insurance, $400 closing/escrow fee.
Looking online, I see that AmeriSave and National Mortgage Alliance have very similar rates with AmeriSave providing about $700 in additional credit. So to compare the local rates vs internet rates with credits up to that of the other settlement charges:
AmeriSave: 3.250%, $2249 net lender fees, no impound
AmeriSave: 3.250%, $1729 net lender fees, yes impound
AmeriSave: 3.625%, $3520 net lender credits, no impound
AmeriSave: 3.625%, $4040 net lender credits, yes impound
So it seems like I could get the same interest rate of 3.625% with AmeriSave that the local company is offering and have no out-of-pocket fees with this purchase. This is as opposed to going with the local company then paying $1815 in lender fees then an additional $4000 in settlement charges.
Or alternatively, I can pay roughly the same lender fees ~$1800 with AmeriSave but get a rate of 3.250% ($905/mo) instead of the local company's 3.625% ($949/mo).
Do people tend to not waive the escrow/impound account to get the extra lender credit -- especially if one is not itemizing deductions -> not prepaying property taxes? Also, how should one weigh the options of no closing costs vs lower monthly payments -- save ~$5800 on closing but pay more $44/mo or $528/yr so ~11 year breakeven?
Edit: For some extra context, our offer agreement has a close of escrow date in the middle of July, so we have some time to talk with different lenders where potentially internet lenders might be slower to respond.