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  • Mortgage Broker or DIY?

    Want to do a refi to get lower interest rate.  Current mortgage was a refi at the begining of 2017.  4.5% fixed for 30 years.  Didn't have enough equity at that time so had to get pmi.  Currently owe $624k.  Home was valued around $775k. At that time, housing was starting to take off in our area.  It has since gone nuts and guessing our home should appraise around $900k.  Our credit score is over 800.  Would like to do a jumbo refi for 20 yrs w/no pmi and use the equity to count towards the 20% of value.  Hoping to get the rate down to around 3.7%.  Don't mind a little higher monthly payment since the payoff time would be reduced.  Would it be worthwhile going through a mortgage broker at this point?  Was thinking that it would be harder to get something put together on my own since it is not a traditional structure.

  • #2
    I went to a mortgage broker, but ended up finding a better rate at a local credit union.  I don't think that 20 yr refinance will be that hard to find, that's a pretty standard duration for a lot of banks, as are the jumbo loans.    You can do both and just shop the rate around, once you get the paperwork all together, it doesn't take too much more effort to apply to multiple places.   Just do them all within a certain time frame so your credit score doesn't go down from the multiple inquiries.  I think that the local credit unions provide the best rates where I live.

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    • #3
      Talked to one of 2 credit unions within 1 hour of me and she said that the rates were about the same as I'm paying now.  She recommended a place called Guild Mortgage.  Are they just a mortgage broker?  Would it be worth trying someone like Wells Fargo?

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      • #4
        The wells fargo online rate looks better then the rate that you are currently getting.   It's easier to shop around these days because I think that there are rules about having to post your rates on line.  Some do have restrictions and slightly higher rates for jumbo loans, but some treat them the same.   I think that it has to do with if they are servicing the loan themselves or selling the loan? that causes them to give you a higher rate for a jumbo loan.   That's surprising that the credit unions quoted you high rates, it must have something to do with your area.   My personal experience with the big banks when I was applying was that their rates were higher then the credit unions.  The big banks probably have more online features, but I have read that they can be more difficult to work with as well.

        https://www.wellsfargo.com/mortgage/rates/

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        • #5
          Provident Mortgage

          I used a mortgage broker once and found better deals on my own.....that created an awkward situation......

          Then I tried Lending Tree and got an insane amount of hard pressure sales calls from numerous financial institutions. The worst was from Quicken loans.

          Then I found Provident. Maybe they don't offer loans in your state but they had the best rates by far for me and lowest closing costs (this was 7 years ago)

           

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          • #6
            Costco has some preferred lenders.  We used one to refi from a 30 to a 15 at 2.75% a few years back.  The rate we got was better than what bankrate advertised at the time.  Worth a look if you're a Costco member.

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            • #7
              After shopping around a bit, not having much luck with local lenders.  Not much to offer for jumbo loan.  15 yr rates worse than 30.  Best rate I could find was 3.99% fixed for 30 yrs. Haven't talked to WF yet though.  Their advertised rates are better than what I have found so far.  Might end up having to use the broker at this rate.

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              • #8
                We have always shopped on our own and shopped brokers.
                We don't sign up with a broker or pay anything until we have settled on a rate.

                DYI and brokers are not mutually exclusive.

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