With so many choices for refinancing, which route would you recommend going with? Traditional bank, online only bank, or credit union?

Asked by R O, 94585 Wed May 8, 2013

Looking to refinance from a FHA 30yr fixed to conventional 30yr fixed. Experts: Which route would you recommend going with? Traditional bank, online only bank, or credit union?

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, ,
Wed May 8, 2013
By the way R Ojeh,

You only need 10% equity to refinace into a program with NO MORTGAGE INSURANCE ( meaning no lender paid MI either ...NO MI AT ALL)

1 vote
, ,
Mon Apr 21, 2014
R You purchased the home from a real estate agent.
Contact them and get a good referal. The loan agents that are referred from a know source are your best bet.
On line lending? You will be working with a voice or an email at the other end of the line.
Bank? May take weeks and weeks...unless referred from real estate agent.

I prefer to meet my clients in person. I usually find a convenient location for both us.
I feel if you are going to be entrusting your biggest investment to someone, you should be able to meet them and have access to them when you need them (evenings/weekends).

Touch choice for you. But, be picky.
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Apr 18, 2014
I would stay away from any online banks. Choose a local and trusted mortgage company. Ask tio be pre-qualified and have them show you the cost of each loan, what the rates are, closing costs and compare to what you pay now. You will want to save at least 1/2 percent off your current interest rate. The savings will come if you have 20% equity in your home. If not , you may just be getting more in debt
0 votes
Randall Ortiz, Agent, Sacramento, CA
Wed May 8, 2013
I would consider going with a mortgage broker. They can shop around to get the best rate and pricing for you. Let me know if you want me to refer you to one.
0 votes
Steven Ornel…, Agent, Fremont, CA
Wed May 8, 2013
Hi R Ojeh,

My personal preference would be a Mortgage Broker/Banker.

Some of the key differences between lending sources (based on my personal opinion and experience) are contained in this post:

"Retail Banks vs. Mortgage Broker/Bankers"

0 votes
, ,
Wed May 8, 2013

If R Ojeh's new loan is over agency's limit for his County, the new loan will not be a Fannie or Freddie loan...
0 votes
, ,
Wed May 8, 2013
Well I actually work for a FDIC Bank.

But in fairness I would like to say that brokers do get a bad rap. Fact of the matter is that really matters more with loan officer than the institution. I have known brokers, mortgage banks credit unions and FDIC Banks all doing a great job.

A good loan officer will care more about you then the money they may make. They will tell you up front what it will cost, how much you will save and if it makes sense for you to do the loan.

What you want to stay away from is the boiler room lenders, Greenlight, Cash Call, Lending Tree etc. If you Google them you will find tons of well deserved complaints. If they advertise non-stop on the radio TV etc. chance are it is a boiler room.

I would also say that if you respond to an ad where they say the 30 year rate is 2.875 with no fees, and then you find out it is 3.5% with $3000 in fees, you have to ask yourself about the person taking the calls. I guess you would not expect them to say " Oh my company advertises a lower rate than we actually have, in order to get people to call in." Fact is that two of the three companies I mentioned above advertise rates lower than what they can actually offer. Several other companies do the same thing. The problem is rampant.

Ask them how soon they can lock in the rate, and how many days is it locked for. If they won't be able to lock in the rate early in the process, then they really can tell you any rate the want as it will change anyway.

Some lenders can not actually lock in a rate. In that case ask to see a copy of their rate sheet. If it is a broker ask to the pricing includes all brokerage fees charged as well (some do some don't.)

I will lock in the interest rates as soon as the customer provides me the required documentation.
0 votes
Fred Glick, Agent, Mountain View, CA
Wed May 8, 2013
All loans end up at either Fannie Mae or Freddie Mac regardless of where you go to have it originated.

Mortgage brokers are the most highly licensed and verified originators on the planet. I would suggest you talk to a few brokers and go with the one that you feel the most comfortable with.

Fred Glick

Broker/Owner, Multi-state Licensed Real Estate Brokerage U S Spaces, Inc.
Managing Member, NMLS Certified Mortgage Brokerage U S Loans Mortgage LLC

215.238.9400 East Coast
415.683.6950 West Coast


2043 Locust Street Phila, PA 19103 215.829.8850 x201
4354 Perlita Ave Los Angeles, CA 90039 310-741-7179

Licensed Real Estate Broker PA- U S Spaces, Inc.
Real Estate Broker, CA Dept of Real Estate DRE#01507615
NJ Licensed Real Estate Salesperson- U S Spaces

U S Loans Mortgage LLC #51022
Licensed by the Commonwealth of PA Department of Banking,
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California licensed with Signet Mortgage, NMLS# 168365, DRE#01403423
Personal Virginia Mortgage License #MLO-523VA
NMLS Test Certified National License #133975
http://usloans.com for live rates and online mortgage application
Web Reference:  http://usloans.com
0 votes
, ,
Wed May 8, 2013
A Mortgage Broker...

Traditional Banks and Credit Unions will not provide unbiased advice nor selection, since by doing so they will possibly risk losing your loan to the company whose product truly provides you the most value.

Mortgage Bankers on the other hand cdo sell a variety of products, from multiple sources, and can be objective in their recommendations. The compensation they receive is regulated, therefore the outcome of the recommendation doesn't matter. What does matter is giving you the best loan and best service for your needs.

Check us out.
0 votes
Alain Picard, Agent, Puyallup, WA
Wed May 8, 2013
Depends on your situation. Get your credit score and then contact some of these lenders and ask them what your rate would be, what are the fees that you will pay to refinance and so on. Only have one lender pull you credit score for you and then just tell all of the other lenders what your score is rather then having each lender pull you credit. Factor everything in as far as the total cost of the loan and then pick the lender that makes the most sense to you.
0 votes
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