Where to find reasonable mortgage rate?

Question

My friends have suggested e-trade for mortgage because there are less costs associated since everything is done on-line. Others have suggested lending tree. Where can I get the best mortgage rate? I have almost perfect credit (very high score), no debt (except student loans), have always paid my bills on time and have had a steady job for the past 10 years.

Answer 1

With a credit history as you indicate you possess, you will do just as well with any local mortgage broker or bank. Do your homework and shop around. There's more to it than the interest rate, such as origination and other fees.

If you are looking to PURCHASE rather than re-finance, I definitely recommend a local broker or bank. I have dealt with a few homebuyers who have done 'online mortgages', and most have been a total disaster.

Loan docs incorrect, not on time for closing, etc. When the customer called about the problem, the usual answer was "Sorry, but you will just have to delay your closing until we get it done and FedEx'd to you.

That does not work well when you have a specified closing time and the seller is waiting for HIS check to move to close on his NEW house. Beware.

Answer 2

I agree with Acermill, online lenders are plagued with problems, I would avoid them.

I always stress that you need to compare more than mortgage rate. I recently heard of a Lending Tree transaction where the person went with the best percentage rate offered. This was quickly dismissed by all the fees that were attached to the transaction. Buyers regret is still a topic with this person.

Find out about closing costs, pre-payment penalties, transaction fees, late fees, etc., etc. When you are comparing apples to apples, you will probably dismiss the online lenders and go with a local lender.