Where to find the cheapest mortgage?

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BundyBundy
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Where to find the cheapest mortgage?

Post by BundyBundy » Thu Dec 18, 2014 12:33 am

bogleheads!!!!

i was wondering where should i get to obtain the cheapest mortgage/closing fee. Although I understand the mortgage % doesn't always mean the cheapest because closing fees can make it very expensive. So my question to you is where to obtain the cheapest mortgage? I live in the California btw.

Have anyone dealt with Penfed? There rates seems very competitive

Have anyone dealt with Quicken? They mail me a letter stating that if they don't offer the cheapest mortgage %/cost, they would offer me a 200$ giftcard.

I was also recommended to use mortgage professor!

Any advice/suggestions would be appreciation.

I am looking mainly for a conforming loanm around 400k range. THX!!!!

bundy bundy

turno77
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Re: Where to find the cheapest mortgage?

Post by turno77 » Thu Dec 18, 2014 2:45 pm

For a refinance I checked out PenFed, Capital One (since I have 360 Savings with them), and did the Mortgage Professor search which led me to eRates. I ended up going with eRates because the rate & costs combo made the most sense to me. I could have paid points with PenFed to get a .25% lower rate, but decided not to in the event I refinance in the future. I've been happy with eRates so far. I read some poor reviews from a couple of years ago, but I have not had any issues.

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archbish99
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Re: Where to find the cheapest mortgage?

Post by archbish99 » Thu Dec 18, 2014 2:57 pm

I was pleased with the process through PenFed. There is some truth to the complaints that they don't often call you with updates, but if you want one, ask for it. I found my servicer to be responsive. Their closing cost credits and points appeared a little strangely on the HUD-1 and the servicer couldn't explain it to me (he wasn't the one who prepared it), but I was able to figure out the numbers myself after a little math. The whole process was very smooth, even down to having a notary come to our house to do closing rather than having to go into a local escrow company.
I'm not a financial advisor, I just play one on the Internet.

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Taylor Larimore
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PenFed

Post by Taylor Larimore » Thu Dec 18, 2014 3:04 pm

BundyBundy:

We had two mortgages with PenFed: The first was a breeze. The second (after never missing a payment on the first) was a nightmare of delays, red-tape, confusion, and incompetence. It took approx. 6 months to close (2 years ago).

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

retiredjg
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Re: Where to find the cheapest mortgage?

Post by retiredjg » Thu Dec 18, 2014 3:15 pm

I did a mortgage with PenFed this summer. It was miserable and I cannot recommend them.

Every time I sent something to them it was like a black hole. Then a couple of weeks later I'd learn that I had not sent what they wanted. Phone calls and emails were not returned...consistently. I had to send everything to them rush rush rush but I never got anything thing from them in any hurry.

Even the closing was almost delayed a day because they would not send the paperwork a day early so my closing people could finish their part. The only reason we did close on time is because my attorney's paralegal went the extra mile when I told her how many people would be affected if closing was late. And there was a form missing at closing which I had to sign later that day. Just one thing after another. To say the whole 2 months was stressful and frustrating would be an understatement.

I am happy with the rates, but that is the only good thing I can say. From the sound of things, their service has improved lately. But if you decide to use them, build plenty of time into the process, don't expect to hear from them, know that nothing will happen until about 3 days before the deadline, and do make plans to close a day later than you schedule.

newbie001
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Re: Where to find the cheapest mortgage?

Post by newbie001 » Thu Dec 18, 2014 3:40 pm

I think Erates is pretty tough to beat. Although I didn't get my loan through them (it just closed two days ago), I was able to get one of the big banks with a local branch to match the terms of Erate's proposed loan. Saved me a good chunk of change. The guy I dealt with at Erates was very impressive- really fast responses no matter the time of day or night. Please feel free to PM me if you want his name.

supertreat
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Re: Where to find the cheapest mortgage?

Post by supertreat » Thu Dec 18, 2014 4:05 pm

I've twice refinanced w/ a gal named Claire Lucas at National Mortgage Alliance. Everything was completed online and she was very responsive by email. When I went through them they had the best rates on no-cost refinances - but I'm not sure on initial mortgages. Would definitely recommend her though.
Assets - Liabilities = Equity + (Income - Expenses)

itstoomuch
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Re: Where to find the cheapest mortgage?

Post by itstoomuch » Thu Dec 18, 2014 5:03 pm

At anytime, a broker or mortgage banker/company may offer a competitive mortgage.
DS used the Zillow portal. He found a broker who only advertised on the weekends who offered extremely competitive mortgages and had too much business and only wanted committed clients.
Rev90517; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax 25%. Early SS. FundRatio (FR) >1.1 67/70yo

Coiled_Snake
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Quicken

Post by Coiled_Snake » Thu Dec 18, 2014 5:09 pm

I can't say it is the cheapest but we used Quicken and they are professional and quick. They do throw in lots of silly little goodies at closing too.

laffsf
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Re: Where to find the cheapest mortgage?

Post by laffsf » Thu Dec 18, 2014 5:19 pm

I've also found the Zillow mortgage portal to offer competitive rates. I'm currently going through a refinance with a mortgage company I found on their site.

Kennedy
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Re: Where to find the cheapest mortgage?

Post by Kennedy » Thu Dec 18, 2014 5:39 pm

We used one of the Costco approved lenders. I think it was Bank of the Internet. At the time, I researched many lenders' fees, and the Costco associated lender was the lowest. For Costco Executive members, they have dropped the lending fee even lower than when we used them. You can get a general quote from the Costco website.

MattE
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Re: Where to find the cheapest mortgage?

Post by MattE » Thu Dec 18, 2014 5:59 pm

When we were mortgage hunting last year, we found that AimLoan and National Mortgage Alliance offered the best rates, and it wasn't even close between them and anyone else (including PenFed and NASA's FCU). AimLoan had the lower rates initially, but we were able to bid them against each other and NMA had the best offer by the drop-dead date I set based on the terms of our purchase contract for our house. AimLoan came back with a lower rate after that actually, but a deadline's a deadline for a reason...

Anyway, the process with NMA was pretty smooth, with the only bumps being that I had to fax\email them copies of certain paperwork more than once a few times (partially because the gap between our contract and closing dates was really long - like 60 days), and they denied the vendor I initially wanted to underwrite our title insurance due to corporate policy, but that ended up not being an issue as our fallback had no meaningful price difference. Our loan officer and processor there were Pat Darsey and Sajuan Wilbanks.

southport
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Re: Where to find the cheapest mortgage?

Post by southport » Thu Dec 18, 2014 6:12 pm

I can only speak for myself, of course, but I had a great experience with PenFed about a year ago - I refinanced with the 5 year ARM at 2.5% with absolutely no closing costs, and I was not required to have an escrow account for taxes and insurance. Seemed like a no-brainer for me.

I was careful to supply all of the required stuff, in order, in one packet, and called to make certain it was received, and kept file copies of everything. A notary came by our house with the closing documents at the appointed time; it was a snap for me.

AdamFist
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Re: Where to find the cheapest mortgage?

Post by AdamFist » Fri Dec 19, 2014 8:42 am

I had a good experience with aimloan.com, which is an internet lender. They had a reasonable appraisal fee and were up front with all the costs. They will send someone to your location to do the closing.

Adam

BundyBundy
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Re: Where to find the cheapest mortgage?

Post by BundyBundy » Fri Dec 19, 2014 11:54 pm

thx guys! I have never heard of some of these mortgage companies. Greatly appreciate all the input. I will def look into the all the mortgage companies listed above.

it seems like Penfed was a hit or miss with some people. I heard horrible stories and the how they will prolong the whole process. I guess I'll inquire into PenFed but will take note.

In term of closing costs, is there anything I should be looking for? I read that most mortgage companies overcharge for title insurance, and a good provider is cheap provider Entitle.

Lastly, has anyone ever received additional discount of being a premium member of some type of bank/club? Chase gave me a rate, and inform me that if I become a private client, I am shaved another additional .25%. I am already receiving a pretty good rate of 4.1% as of last month. For example, another would be being a Costco member.

Any other advice/suggestions that will reduce cost would be greatly appreciate. Thank you bogleheads!

ahmadcpa
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Re: Where to find the cheapest mortgage?

Post by ahmadcpa » Fri Dec 19, 2014 11:59 pm

I've refinanced my loan three times in one year. Two times the year before....that's when rates were going down. i am an accountant, so everytime I refinanced, I ensured that I didn't lose anything. Anyway, everytime of those five times I refied was using Zillow Mortgages.....I've done the whole nine yars, from Penfed, to local credit unions, to major banks to smaller banks, never ever have i found anyone to beat Zillow mortgage referrals. Try it out and tell me if you find something better.

wxl31
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Re: Where to find the cheapest mortgage?

Post by wxl31 » Sat Dec 20, 2014 12:03 am

Also in CA. Have had good experiences with Provident Funding (http://www.provident.com). Their rates were consistently lowest. They actually have a rate calculator on their homepage that does not require any contact information to give you a rate quote.

However, be forewarned that they are the most anal retentive mortgage company that I've ever dealt with. If you have a stellar debt to income ratio, high credit score, and have all your bank statements/W2s/etc readily available, they are fine to work with (have had them close in < 21 days before).

However, I would strongly NOT recommend them if you are a marginal applicant, suboptimal credit score or aren't organized with your paperwork.

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cowboyinasia
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Re: Where to find the cheapest mortgage?

Post by cowboyinasia » Sat Dec 20, 2014 11:25 am

Thanks to the OP and other contributors to the thread . I'm overdue on having a will and as a Boglehead like leveraging a DIY component into it. What this has helped me conclude is that that for many people - and I think me included - it's fine and good to start with books and software. For a couple reasons: it'll be a chance to learn and consider options without paying lawyer fee tuition, as an option it's more developed and better than a few or ten years ago.

This reminds me of the some of the man vs. machine arguments:
    only people can recognize faces (oh wait, not anymore)
    a computer will never beat a human at chess (hmm, that's ancient history)
    only people can understand natural language (I just asked my smart phone about that. literally)
    software can't beat humans at Jeapordy (ouch, that was a real spanking)
    computers can't write their own code (self-modifying software is a start)
    only people can write good wills (I think this is reaching a cusp, and anyway I'll help the software prepare my will)

BTW, call me old fashioned but I hope that all Bogleheads posting here remain real humans, for at least as long as I'm alive.

Daisy Dog
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Re: Where to find the cheapest mortgage?

Post by Daisy Dog » Sat Dec 20, 2014 12:03 pm

Bundy Bundy, Thank you for your post. We are trying to determine how (and where!) to get a mortgage since we haven't had a mortgage for decades. I will post a separate thread since our situation is a little different. But the responses to your question have been helpful already.

Daisy Dog

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tfb
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Re: Where to find the cheapest mortgage?

Post by tfb » Sat Dec 20, 2014 12:10 pm

BundyBundy wrote:i was wondering where should i get to obtain the cheapest mortgage/closing fee.

It's not possible nor necessary to find the cheapest mortgage/closing fee. You won't know who's the cheapest unless you get a quote from all of them. Then their rates and fees change daily. Whoever was the cheapest on one day may not be the cheapest a week later. Get a good enough rate/fee combo and go for it. None of the names mentioned so far are the cheapest in all loan types at all times.
Harry Sit, taking a break from the forums.

tj218
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Re: Where to find the cheapest mortgage?

Post by tj218 » Sat Dec 20, 2014 12:29 pm

Used First Internet Bank back in the Fall of 2013. They weren't the absolute cheapest, but they were pretty close by 1/8th of a point. Documentation and everything was absolutely painless as they have a secure web portal and you just upload the documents. You can fax or snail mail them too. Whenever I had a question I called and got the help I needed without going through the phone menus or outsourcing at other institutions. They have since sold my note to Chase, but that part of the business is unavoidable.


I highly recommend them.

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Federal Agent
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Re: Where to find the cheapest mortgage?

Post by Federal Agent » Wed Mar 01, 2017 7:19 pm

laffsf wrote:I've also found the Zillow mortgage portal to offer competitive rates. I'm currently going through a refinance with a mortgage company I found on their site.

itstoomuch wrote:At anytime, a broker or mortgage banker/company may offer a competitive mortgage.
DS used the Zillow portal. He found a broker who only advertised on the weekends who offered extremely competitive mortgages and had too much business and only wanted committed clients.



I just went to Zillow to find this "mortgage portal". So, I found a generic home for sale and now I see the Mortgage tab on the middle of the page. I clicked on the Mortgage Tab and it asks if I want to get pre-qualified.

Is this the "Portal" that the two mentioned in the above comments? I'm looking for competitive rates/fees from potential lenders. Does anyone know if I'm on the right track? Not ready to have a Credit Check run on me.....

itstoomuch
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Re: Where to find the cheapest mortgage?

Post by itstoomuch » Wed Mar 01, 2017 8:47 pm

Using web portal: under mortgage tab, -> Mortgage Rates.
Rates are highly transient
Ymortgage MV
Rev90517; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax 25%. Early SS. FundRatio (FR) >1.1 67/70yo

andrew1976
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Re: Where to find the cheapest mortgage?

Post by andrew1976 » Wed Mar 01, 2017 9:32 pm

Check out Churchill Mortgage. I recently inquired about refinancing and the math didn't work. I still was pretty satisfied with my experience with them.

https://www.churchillmortgage.com/

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Federal Agent
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Re: Where to find the cheapest mortgage?

Post by Federal Agent » Wed Mar 01, 2017 10:05 pm

itstoomuch wrote:Using web portal: under mortgage tab, -> Mortgage Rates.
Rates are highly transient
Ymortgage MV


Now I see it.. Thanks

HIinvestor
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Re: Where to find the cheapest mortgage?

Post by HIinvestor » Wed Mar 01, 2017 10:19 pm

I wanted and used a local bank because I wanted them to keep the loan and have someone I could talk with face-to-face as desired. The refinancing went smoothly and we got a decent rate. We pre-paid it so it would be totally paid off before H retired. There was no pre-payment penalty. My brother used an online lender and had no problems. Another brother used a local lender and got their best rates because he has other loans with them for other real estate.

rene
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Re: Where to find the cheapest mortgage?

Post by rene » Wed Mar 01, 2017 10:57 pm

mtgprofessor.com

great website where you can see lowest rates without having to give out phone numbers etc

thru the above site I closed my mortgage with goodmortgage.com and was etremely happy with the process, rate and help

rene
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Re: Where to find the cheapest mortgage?

Post by rene » Wed Mar 01, 2017 10:58 pm


NOLA
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Re: Where to find the cheapest mortgage?

Post by NOLA » Wed Mar 01, 2017 11:31 pm

wxl31 wrote:Also in CA. Have had good experiences with Provident Funding (http://www.provident.com). Their rates were consistently lowest. They actually have a rate calculator on their homepage that does not require any contact information to give you a rate quote.

However, be forewarned that they are the most anal retentive mortgage company that I've ever dealt with. If you have a stellar debt to income ratio, high credit score, and have all your bank statements/W2s/etc readily available, they are fine to work with (have had them close in < 21 days before).

However, I would strongly NOT recommend them if you are a marginal applicant, suboptimal credit score or aren't organized with your paperwork.


Agree with this. When I worked as a loan officer years ago, we used them if we had a client with a very good credit score. However, one of our loan officers tried to use them too often(clients ended up not going through with the loans) and Provident decided not to do business with us any longer.

mikep
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Re: Where to find the cheapest mortgage?

Post by mikep » Thu Mar 02, 2017 11:39 am

In CA, Cal coast credit union has some no cost 5, 7, and 10 year loans that are hard to beat.
5 year 2.875%
7 year 2.99%
10 year 3.375%

I don't have any experience with them with a mortgage but I do have a 1.48% car loan with them (also good). I have 5 years left on 3% so the 2.875% isn't worth it for me, but might be for some.

michaeljc70
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Re: Where to find the cheapest mortgage?

Post by michaeljc70 » Thu Mar 02, 2017 12:00 pm

I used Bankrate.com to compare rates. I got estimates from the ones that seemed to have the best rates/closing costs listed. You have to look at the rate and closing costs as 0 closing costs with a higher rate may not be a better deal. The rub is some (or almost all) lenders want to run your credit to give you an exact rate.

Since it is a one time thing, I don't really care much if the service is mediocre (I don't want horrible service though). 1/4 of a percent over 30 years on a big mortgage can add up to a lot of money.

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