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Started By
Message
Online, national mortgage company vs. local broker/lender
Posted on 9/6/18 at 1:58 pm
Posted on 9/6/18 at 1:58 pm
I'm in the process of a refinance out of a construction loan for home reno. The trim out/finishes of the project took longer than anticipated and we ended up going beyond our rate-lock extension with a local lender.
The rate/fees with the local lender were, based on my analysis, average to slightly high. However, the appraisal came back excellent (83% LTV when I was expecting 90% LTV)
Since I'm in a 30-day wait period with the local lender to do a re-rate lock, I reached out to a national lender who is offering me a lower rate and less fees associated with the refi. However, I would need to re-order an appraisal.
I'm genuinely not sure how to proceed. Take the risk with the cheaper national company and gamble on a new appraisal? Or go with the certain, but higher-fees, local lender that won't budge on fees?
The rate/fees with the local lender were, based on my analysis, average to slightly high. However, the appraisal came back excellent (83% LTV when I was expecting 90% LTV)
Since I'm in a 30-day wait period with the local lender to do a re-rate lock, I reached out to a national lender who is offering me a lower rate and less fees associated with the refi. However, I would need to re-order an appraisal.
I'm genuinely not sure how to proceed. Take the risk with the cheaper national company and gamble on a new appraisal? Or go with the certain, but higher-fees, local lender that won't budge on fees?
3
Posted on 9/6/18 at 4:17 pm to Golfer
Have you shown the local lender the fee estimate / rate estimate from the national lender?
How much a difference are we talking??
do you have to pay for the new appraisal?
How much a difference are we talking??
do you have to pay for the new appraisal?
Posted on 9/6/18 at 4:25 pm to LSUFanHouston
quote:
Have you shown the local lender the fee estimate / rate estimate from the national lender?
Yep. Wouldn't budge.
quote:
How much a difference are we talking??
0.375% and about $2700 based on the lender credit offered by the national lender.
quote:
do you have to pay for the new appraisal?
Yes. $450.
Posted on 9/7/18 at 8:30 am to Golfer
quote:
Take the risk with the cheaper national company and gamble on a new appraisal? Or go with the certain, but higher-fees, local lender that won't budge on fees?
They are both going to sell it to Wells Fargo or Chase anyway, so go with the cheaper option which ever it is.
Research the national company. If they are reputable and cheaper, roll with it.
Posted on 9/7/18 at 10:46 am to CoachChappy
quote:
They are both going to sell it to Wells Fargo or Chase anyway, so go with the cheaper option which ever it is.
Research the national company. If they are reputable and cheaper, roll with it.
Appraisal be dammed?
Posted on 9/7/18 at 11:02 am to Golfer
quote:
Appraisal be dammed?
I would factor that into the price difference.
Do you think the appraisal will change with a second opinion or are you just worried about the cost?
Posted on 9/7/18 at 11:07 am to CoachChappy
quote:
Do you think the appraisal will change with a second opinion
This. I believe I got a favorable appraisal.
Posted on 9/7/18 at 11:19 am to Golfer
quote:
This. I believe I got a favorable appraisal.
Oh, well that changes things a bit. You'll have to do a risk assessment I guess. How big of a loss would the appraisal be vs. how much you would save with the cheaper company. It may come out to a wash.
When in doubt: a bird in the hand is worth 2 in the bush
This post was edited on 9/7/18 at 11:20 am
Posted on 9/7/18 at 12:56 pm to CoachChappy
The risk here is $450. If the appraisal comes back where you want or better, you go with the national company and the $450 loss becomes a decent return. Worst case, the appraisal is worse and you lost $450 just to stay with the local guy.
So, will you miss $450 10 years from now? Think about it that way. Hell, if the appraisal was even close, I'd opt for the national broker. At 83%, you're still not getting out of PMI. You're just closer.
So, will you miss $450 10 years from now? Think about it that way. Hell, if the appraisal was even close, I'd opt for the national broker. At 83%, you're still not getting out of PMI. You're just closer.
Posted on 9/7/18 at 12:57 pm to Golfer
quote:
However, I would need to re-order an appraisal. However, I would need to re-order an appraisal.
Are you sure about this? I recently went through similar situation and you SHOULD be able to utilize the 3rd party appraiser the original lender used. Now maybe the new lender has some reason to not accept (time line before closing / etc.), but I'd definitely double check on that.
Also, when I was going through the process, I went with a local lender, but also got quotes online (quicken loans). Quicken offered a .125% better rate (4.625%). I presented it to the local company and they matched. Fees were within a few $100 of each other.
Also, Quicken loans is as pushy as they get... well at least the loan officer I was working with was!
This post was edited on 9/7/18 at 1:02 pm
Posted on 9/7/18 at 2:50 pm to S1C EM
quote:
At 83%, you're still not getting out of PMI.
I’m prepaying PMI in either scenario.
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