Mortgage Refi question

So you already know your payments will be made to Flagstar? More than likely, you might make the first payment to them and then they sell the loan to someone else.

The paperwork says that I am applying for a loan with Flagstar Bank.

I wouldn't worry much about BBB accreditation, especially for mortgage loan. Seriously. That's about the last thing I'd be concerned about.

Flagstar (google it) is a moderately large outfit, there's no reason to think they won't have the money ready to go for closing. Regarding customer service, as someone else pointed out the chances are quite good they will sell the servicing rights to someone else anyway. Besides, if you are making the payments on time each month there isn't very much "customer service" to worry about.

There are fly by night mortgage operators that screw over uneducated and desperate borrowers with bad credit but if your broker is doing business with one of those then your broker is your main problem.

Are they giving you better rates than others? I would get multiple quotes and negotiate them down on fees. The rate should be very close no matter where you go

Thanks for the responses guys. I got several quotes on different rates and terms - shopped several brokers as well. I ended up with a 3.99% rate and a 30 year because I do not have to pay any closing costs. We'll probably only be in the house a couple more years so we didn't see the point in paying fo closing costs to get a 3.75.

Are you by any chance in Houston and refinancing with First imperial Mortgage?

i am refinancing in Houston and using that mortgage company; they are using the same bank for my loan and I never heard of them before. I did the same research and had the same concerns as you, but i'm still going through with it.

I wish I had some.

Definitley if you plan on staying there another 2 yrs.

JBM - what is the harm in trying? You might have to bring some cash to closing, but it could make a ton of financial sense to knock down your interested from 5.5.