Mortgage Loans

[The High Heat]

Question for reference: Where is the better place to obtain a mortgage: from a bank like Wells Fargo or one of those mortgage specialists (not the online ones, though)? Thanks.

[Winston Legthigh]

I used a credit union. (in November)

I'd be wary of a mortgage specialist. I'd want to use an entity with some history and a strong financial history (and a nice rate).

[Guest Speed Racer]

Question for reference: Where is the better place to obtain a mortgage: from a bank like Wells Fargo or one of those mortgage specialists (not the online ones, though)? Thanks.

 

Having never taken out a mortgage myself, I would urge you to check out FDIC-backed internet banks like ING, which tend to have better rates because they don't have the costs of maintaining branches (staff, property costs, etc.). ING is advertising mortgage rates that are the best I've seen; I keep a savings account, a few CDs and a checking account with them, and keep a checking account with Wells Fargo so I have a local banking option, too.

 

The internet is the best place to make your money earn some money these days, and I can't imagine why lending would be any different.

 

Check out bankrate.com for mortgage rates. Also a good place to check rates for CDs and savings accounts too. Really, an all-around good place for bank rates.

[Winston Legthigh]

Nothing to do with mortgage loans, but I just want to advocate mint.com. Coolest budget software I've ever seen. (and it's FREE!)

[Sir Stewart]

My mortgage is through Wells Fargo. I recommend them, I guess. Of course, mine was one of those "how-the-hell-did-they-ever-approve-that" type of loans from way back in the glory days of the mid-aughts.

[Guest Speed Racer]

I absolutely love Michelle Singletary, a money columnist for the Washington Post. Very, very Christian and takes a lot of her advice from a Christian perspective, but pretty secularly, if that makes sense. For instance, her budget guide includes tithing (10% of your income to charitable contributions, if not to a place of worship), and she frequently recommends 21-day spending fasts (nothing but groceries and gas, basically) for people with overspending issues.

 

If you don't mind a little God with your budgeting, she's awesome. Her budget basically boils down to keeping a $2,000 life-happens fund (like if your water heater explodes or your car breaks down), an amount equal to half your income as an emergency fund, and then paying cash for everything else you want.

 

She hosts a live chat every other Thursday at 11am ET on the Washington Post site.

[The High Heat]

My mortgage is through Wells Fargo. I recommend them, I guess. Of course, mine was one of those "how-the-hell-did-they-ever-approve-that" type of loans from way back in the glory days of the mid-aughts.

Thanks. I bank with Wells Fargo (by default - they bought out Wachovia/First Union when Wachovis's stock dropped to $5 in the banking crisis last couple of years). I'm not looking for the American Dream, pretty much focusing on a townhome. They sell for around 70K in my town and I don't want to have a high payment because I live alone and can't share the bills. My debt is finally getting low enough where I'll have significant flexibilty where I feel a lender would be comfortable dealing with me. I have good credit and an incredidbly stable work history with good job security, so I'm hoping that'll weigh in my favor as I will not have the 20% they usually want. I intend on asking about FHA. Has anyone here ever gone that route?

[ih8music]

Having never taken out a mortgage myself, I would urge you to check out FDIC-backed internet banks like ING, which tend to have better rates because they don't have the costs of maintaining branches (staff, property costs, etc.). ING is advertising mortgage rates that are the best I've seen; I keep a savings account, a few CDs and a checking account with them, and keep a checking account with Wells Fargo so I have a local banking option, too.

 

The internet is the best place to make your money earn some money these days, and I can't imagine why lending would be any different.

 

Check out bankrate.com for mortgage rates. Also a good place to check rates for CDs and savings accounts too. Really, an all-around good place for bank rates.

I agree with these points. I've been an EverBank customer for over a decade now and have nothing but good experiences with them. I also used them for my first mortgage & refinance (but I'm now going thru USAA for my current mortgage - best rate when I was looking).

 

Definitely shop around for rates - pay attention to the actual APR quoted for the loan and not just the rate, as the APR will factor in all the fees involved. Pick the 2 or 3 lowest from institutions you're comfortable with and then call them about other terms that might be of interest to you (payment options i.e. pay 50% 2x/month, early payment penalties, etc.)

[Winston Legthigh]

Has anyone here ever gone that route?

I went with two mortgages, which might be more rare nowadays. First mortgage for the house, 2nd mortage to bring my downpayment up to 20%, so I wouldn't have to pay mortgage insurance.

[Guest Speed Racer]

My biggest grudge with ING is that its campaign for so long was that stupid, "What is ING?" thing. I had no idea what the hell ING was, so I didn't know it was a damned bank. I've been a customer since 2007. After a few months, I had three CDs at 4.25%, 4.00% and 3.75%, and a month after I got the 4.25% rate, everything crashed. I really, really, really lucked out.

[remphish1]

Question for reference: Where is the better place to obtain a mortgage: from a bank like Wells Fargo or one of those mortgage specialists (not the online ones, though)? Thanks.

I did my mortgage through PNC bank...about 2 or 3 months later they sold my mortgage to Wells Fargo....Wells Fargo is decent as they let me refinance 1 time at no extra cost.

[The High Heat]

I went with two mortgages, which might be more rare nowadays. First mortgage for the house, 2nd mortage to bring my downpayment up to 20%, so I wouldn't have to pay mortgage insurance.

Is that the 20/80 mortgage? I've read they're harder to get now, but not impossible.

[alison the wilca]

We got an FHA loan- worked great. I got a great rate and am actually refinancing with FHA next week at an even lower rate. I think it is just a little more paperwork and slightly stricter requirements about what you buy (like, you can't buy a condo in a complex with more than x% vacancies or, your can't buy a house if it is not a certain condition, etc).

 

If you don't have 20%, it actually may be one of the only ways you can go. everything else is so hard to get.

[The High Heat]

We got an FHA loan- worked great. I got a great rate and am actually refinancing with FHA next week at an even lower rate. I think it is just a little more paperwork and slightly stricter requirements about what you buy (like, you can't buy a condo in a complex with more than x% vacancies or, your can't buy a house if it is not a certain condition, etc).

 

If you don't have 20%, it actually may be one of the only ways you can go. everything else is so hard to get.

I read somewhere that the tax credit being offered right now can somehow be applied to a FHA loan , whether it'd be closing costs, etc. I don't remember exactly what it said. I've got it on my home computer, so I'll have to recheck that info.

[Winston Legthigh]

Is that the 20/80 mortgage? I've read they're harder to get now, but not impossible.

I think so...