bankrate.com has alot of very good information. Lets you know where the rates are for the day and comparison calculators.

The problem with Bankrate.com is when you click for rates, it takes you to eloan where you have to input your information to get the rates for your area. It's ok to look at bankrate for an *idea* of rates, but there are many variables like State, county, credit score, etc.

In my experience, credit unions have not so great rates compared to others.

Do you belong to USAA? If so, it's a good place to start, their rates are semi competitive.

Sounds like most people are more diligent than me. I called the mortgage company attached to the bank I'd been with for 20 years and they gave me a good deal because my FICO was over 800. I never even got another estimate. I consider it an advantage that they don't sell their mortgages.

Did you your house close? I missed a lot of posts over the holiday.......

Im no expert, made my share of mortgage mistakes! Maybe I should make my own complaining post lol!! We shopped around, checked our credit union, USAA, even did the lending tree thing and got the best rate through one of the banks. It can be very complicated. Some say "no closing fees" but inrelaity they do,they just call it something different, such as an admin fee!! One really has to go through the good faith estimates line by line and take ur time doing so!

On our first mortgage (july 2006--we refinanced this past Nov) a fellwo who owns his own mortgae company,played on one of my sports teams! He stated he would give me the best deal going. At first when I looked at the estimate, it looked great! BUT upon closer look, I was paying to buy down the interest rate and his other fees were much higher.

And I still go by the saying--if its too good to be true, it probably is!! My brain isn't functioning well this morning (need more coffee) but there are companies out there that will give you an estimate of such an amount, but when it comes to closing, all of a sudden that amount goes way up!!

All I can say is shop around and then sit down and compare their good faith estimates line by line. Most banks can take ur info online and email you the results. Best of luck

I agree that Bankrate.com is the best resource out their for mortgage rates- the site lists current rates by state and city and the various local banks. You can get local rates on almost any type of mortgage: 30 fixed, Jumbos, interest only, adjustables, etc.

HOWEVER, as Sparksals warned, just be careful to avoid clicking on the advertisers' links that are scattered throughout the site. eLoan has an ad on their that is very clever and looks like it's part of Bankrate.com, but it's really just a link that will take you directly to eLoan's site. Keep your eye out for the little "Advertisement" over these types of links)

I have good faith estimates from several lenders as of today. But I was just told by one that the closing cost deal they offer (a price was quoted me that includes all closing and title costs) only applies if I use their title company. This makes sense, of course, but I didn't realize that the seller could specify that I must use THEIR title company. If using theirs, then I'm all in a muddle again about how costs are parcelled out.

"...but I didn't realize that the seller could specify that I must use THEIR title company"
This is what RESPA says: (usually if seller pays, seller gets to select title co.)
3500.16 Title companies.
No seller of property that will be purchased with the assistance of a federally related mortgage loan shall violate section 9 of RESPA (12 U.S.C. 2608). Section 3500.2 defines ``required use'' of a provider of a settlement service. Section 3500.19(c) explains the liability of a seller for a violation of this section.

3500.2 Definitions.
Required use means a situation in which a person must use a particular provider of a settlement service in order to have access to some distinct service or property, and the person will pay for the settlement service of the particular provider or will pay a charge attributable, in whole or in part, to the settlement service. However, the offering of a package (or combination of settlement services) or the offering of discounts or rebates to consumers for the purchase of multiple settlement services does not constitute a required use. Any package or discount must be optional to the purchaser. The discount must be a true discount below the prices that are otherwise generally available, and must not be made up by higher costs elsewhere in the settlement process.

3500.19 Enforcement.
(c) Violations of section 9 of RESPA (12 U.S.C. 2608) or 3500.16. Any person who violates Section 3500.16 of this part shall be deemed to violate Section 9 of RESPA and shall be sanctioned accordingly.

p.s.
FYI, the spread between the loan rate ie. 6% and the APR ie. 6.28%, is the cost of the loan over the life of the loan. The lower the spread, the lower the closing cost.

Please don't shoot me when you all read this, but I am a mortgage broker so I will offer my comments.

Firstly, Berniek is absolutely right. YOU, as the client, are supposed to pick your title company just as you are required by law to pick your own insurance company. You even sign a document stating that you will pick your own insurance company. If the broker will only do the loan "IF" you use his/her title company then walk. It is probably a spouse that is the title agent and that is why he/she states that. Call around to different title companies and ask them what their fees are. Ultimately, they are all only brokers of title insurance and their charges are commissions to their company. What you will find is that there should only be a small, say less than $50, difference and then just use the title company that charges the least amount. They all do the same thing.

As for a broker and a bank, it goes like this. A broker, like myself, can shop hundreds of companies and and actually get the best rates versus a bank. A bank however, doesn't have to disclose, unfortunately for the consumer, all their fees because they fall under the banking laws and not the the same laws and regulations that a mortgage broker hence a banker doesn't need to be licensed. However, a bank and/or Credit Union generally will limit themselves to only providing loans to those select few with stellar credit but they also have more discretion in loosening their guidelines for borrowers compared to a broker.

Make NO mistake about it though, ALL banks, credit unions, and broker lenders, ALL sell their loans to the secondary market to become liquid so that they make make more loans. The reason we are in this mortgage mess is because the Secondary Market, i.e. Wall Street, is not buying loans and freeing up money for the everyone to get liquid funds to make more loans.

As for the GFE it is only an estimate and some of the fees will change but they are only correlative to what day of the month you close. These are the escrows. The fees that affect you are the Origination, Processing, Broker Fee, and Title Insurance. If at all possible have all fees, including YSP charged as Origination because that is what you can deduct on your taxees. Most of the rest are out of the brokers control, although he need answer for them, and a bank doesn't even have to disclose what those fees are, very unfortunately.

Lastly, when you go to close take the GFE that they originally gave you and compare the fees. Escrows don't count because that is not a fee. If they are different then walk out.

I hope this helps. If you live in Utah or Idaho I could help you with your loan.

Sorry for all the questions, but I'm mortgage shopping this week and it is a slow but steady learning process. So far, I've spoken with 4 different lenders -- two banks and two credit unions. I got written Good Faith estimates from three of these, but here's the question of the moment. The fourth lender, Credit Union X, very reputable in the area, is offering a flat rate closing fee that is very attractive. The flat rate fee includes (I am told) all closing and title fees as long as you use their (again, reputable) title company. The lender did not seem willing or able to break down the said flat fee into constitutent parts. But I brought along blank Good Faith estimate form from another lender, so I know all the possible categories that can come into play for closing/title costs. I asked several times in several different ways, and was assured that the flat rate fee covered all possible charges for closing and title costs --except prepaid items like escrow for property taxes and insurance (which I am not doing). As mentioned the flat rate is very attractive. Does anyone here have experience with such flat rate closing fees, and does this sound right? What else should I ask? Again, there is no reason to doubt the integrity of this credit union and reputation.

marita40: "Again, there is no reason to doubt the integrity of this credit union and reputation."

That may seem to be true...but apparently thousands of others felt the same when dealing with a supposedly reputable financial institution. Â.got burned big time on the small print...and now are being blamed by some as the reason for the mess we are in...claiming they were stupid or looking for too good of a deal.

That said...consult a RE attorney...have him/her review the fine print...in order to have the best chance of making certain that the conditions are as promised.

No longer can one trust an entity based upon perceived reputationÂ.all are now suspect.

That said, I would ask why they refuse to break down the flat fee, in order for you to be assured that it does indeed cover all costs that they state it covers. Possible red flagÂ

OUCH OUCH OUCH!!!! This is all making my head hurt!!!

The MOST FINANCIAL CONTROL you can ever get in the mortgage origination process is in the selection of your actual PROVIDER.

The E in Good Faith ESTIMATE stands for.... well.... ESTIMATE!!!

An ESTIMATE is "NOT" in any way a BINDING QUOTE!
The law does not recognize any estimate as a binding quote.
The INDUSTRY does not recognize any estimate as a binding quote.

Trying to shop mortgage financing as though it were a commodity is a complete waste of effort, time and resource. Your results will NOT be related to the "research" of advanced estimates!!!

While one is searching the numbers, IF THEY ARE RANDOMLY LUCKY they will accidentally happen to select a trustworthy service provider who is competent and handles your process well, which will result in whatever the eventual numbers end up being.

If they end up happy with the final numbers, they'll hold that out as supportive evidence of the "magical thinking" that the initial snipe-hunt was worthwhile.

If they end up unhappy with the final numbers they'll make up some accusatory reason why the provider was predatory, etc.

THE TRUE CAUSE OF THE RESULTS;
The competence of the specific individual who is controlling the origination and managing the process.

Choose your provider by any other means, and you may as well go to Vegas and have some FUN along the way... your results will be equally stacked against you.

Luck!
Dave Donhoff
Strategic Equity & Mortgage Planner

Just a quick note to answer your question regarding flat rate fee's or "no" closing cost loans. You will "normally" be paying a higher interest rate then if you were to pay each of the charges listed on the GFE. Brokers or banks make more money (obviously) on the higher rates they sell. The money they make on the backend is used to cover the costs for doing the loan.

Dave is right E is for Estimate only. There will be a pretty big difference in your estimate and final figures. There is truly no way to know every exact charge ahead of time, it will also depend on the time of the month that you are closing as well.

Good Luck!

That may seem to be true...but apparently thousands of others felt the same when dealing with a supposedly reputable financial institution. Â.got burned big time on the small print.
No need to get burned on small print, just read your contract before signing. The terms for an ARM, are not in small print. the time frame for reset is clearly stated, as is the index, margin, cap, etc in large type.
Please do not keep perpetuating the myth that thousands of people received loan loan docs that did not clearly disclose their ARM. The people read them (or signed them without reading) and agreed to the terms of the loan.
If one is not comfortable reading the docs themself, retain an attorney before signing.

OT. "Time of the month"? Jeez, I haven't heard that old phrase in years, and never thought it applied to mortgages.
Who knew banks were skittish and 'hormonal'? LOL.

Seriously, what a load this all is! Where else in business is a bid not 'exactly' a bid? The GC doesn't give me a 'ballpark' figure on his contract. How do banks and brokers get away with this shell game?

cmarlin20: "Please do not keep perpetuating the myth that thousands of people received loan loan docs that did not clearly disclose their ARM. The people read them (or signed them without reading) and agreed to the terms of the loan.
If one is not comfortable reading the docs themself, retain an attorney before signing."

Myth? And you are so dead certain of this because....?

cmarlin20, here is an article that you might want to read...it is from 2002...and belies your belief. There are many, many more just like it...but I chose this one because of its date.

This was apparently a very large settlement...which proves that the machine that perpetuated these practices was fueled on purposeful deception...and those who engineered the game knew EXACTLY what they were doing as much as six years ago...if not longer...but kept right on truckin'...

That said, I would be very interested to read any info that you can link to that supports your claim that all loans were handled with the utmost of disclosure, spelled out in clear and concise language, and were absent of any bait and switch tactics.

Here is a link that might be useful: A Home Lender In a Settlement For $60 Million

Hi Chisue,

Seriously, what a load this all is! Where else in business is a bid not 'exactly' a bid?

Whenever it is an ESTIMATE and not a BID.

There is a significant difference;
An ESTIMATE is a rough best-hope guess of costs,
A BID is a concrete, reliable, certainty of cost.

Mortgage pre-disclosures provide ESTIMATES because in advance there is no way to attain reliable certainty.

The GC doesn't give me a 'ballpark' figure on his contract. How do banks and brokers get away with this shell game?

Banks and brokers have no way of securing certainty in advance of your application peculiarities (and in fact, most applicant's don't either.) The originator has no control over a financial market's behaviour during the 3-6 weeks a loan requires for the various diligence processes, nor the eventual (unknown in advance) diligence services that end up being required due to the applicant's or the property's unique peculiarities in advance.

In short, loan originators are navigators of an uncertain process... not sellers of a predeterminable fungible commodity.

Try shopping for a litigation attorney based on their "award bids" as though they could determine in advance the results of a potential lawsuit for you.

Its the same issue.

Cheers,
Dave Donhoff
Strategic Equity & Mortgage Planner

That said, I would be very interested to read any info that you can link to that supports your claim that all loans were handled with the utmost of disclosure, spelled out in clear and concise language, and were absent of any bait and switch tactics.
You have misquoted me, haven't bothered to read your article, doesn't appear applicable for most borrowers.

"Make NO mistake about it though, ALL banks, credit unions, and broker lenders, ALL sell their loans to the secondary market to become liquid so that they make make more loans."

Not always true. I shopped thoroughly for a mortgage (including talking to a broker and using e-loan) and found the best deal at a small local bank that prides itself in not reselling its mortgage loans. They state this policy in writing.