OK, so this post is very much not child related, but I need some advice here. We're buying our first home and desperately need to lock in our mortgage rate before rates keep on going up. The lowest rates we can get come from random online mortgage providers. We can get a slightly higher rate in town from a bank I know and trust. So what would you do? Are there any disadvantages of getting an online mortgage? Do any of you have a mortgage with one of these online companies?
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hm. One the one hand I want it to be a trusted bank. But on the other they can sell your mortgage whenever they want anyway so what's the difference? Have you looked into this online bank? How much lower is it?
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We used ING, though they're now Capital One. My husband had used them for banking and they had a good reputation so we were comfortable using them for a mortgage and we haven't had any problems.
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@Maysprout: I like ING. I have my savings account with them. The problem is that this bank is not one I've heard of before, so I'm a little more skeptical, although they seem to check out.
@locavore_mama: It's 1/8 point higher at our local bank... or we could pay 0.5 points at closing and get it back to the same rate as the online bank. Decisions... -
I think I would feel more comfortable going with a bank that I had at least heard of before. Our mortgage is through Wells Fargo which does not have any banks locally, but was one that I knew and my father works for them so I was comfortable. I always worry about companies online that I have never heard of.
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We used LoanDepot.com to move to a 15 year mortgage at an incredible rate. I was really skeptical at first. We almost used Amerisave, which is all online, but something happened with the appraisal. I think they were probably good too as we didn't have any real problems with them. Loan Depot is legit though, we are a few months into payments. Our financial status was very easy to process though. Also, because we wentthrough this before with Wells Fargo and slipped into a 20-year the year before, we weren't that nervous and didn't need to be walked through since we were already familiar.
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I would have used one if we had a standard scenario (conforming loan, easily documented income, good credit scores, etc).
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I just asked my husband if the bank that holds our loan is a brick and mortar bank and neither of us know. So, it may well be an online bank. All I know is it gave us the best rate so we went with it.
We're pretty comfortable with online banks. I have no accounts with a bank I can go to. They're all online. My husband only has accounts at a bank in person because he works at one.
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We were going to do our refi with AIM Loan, but that was only because a friend of ours had refinanced with them several times.
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