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On 6/9/2021 at 8:21 AM, big_palooka said:

Lastly.... don't use Quicken/Rocket. They are a rip off. They overcharge on fees and their people are order takers. Use a local broker, they have all the same products and better advice.

 

On 6/9/2021 at 8:39 AM, ET80 said:

Fascinating read, @big_palooka

I'm currently with them, had nothing but positive experiences. My original mortgage was with them, and refinanced during (just before, actually) the pandemic.

Should I shop around? I had a situation where I had a six month foreberance when I got laid off in 2016, should that factor into any decisions?

Yeah, I'm with Quicken as well, and am happy with the results.  We came out of a local bank that kept us in limbo for 8 months, and Quicken's closing costs were actually less, because they let us choose who did the closing.  I did it with my firm, which saved money, since some of those closing costs were funneled back to me.

The local bank, on the other hand, gave us a list of things that needed to be repaired in the house for them to sign off only to then change their mind after we did those repairs.  Like, we had, in writing, that repairing those costs was the only thing they required, but they violated their own terms anyway.

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On 6/9/2021 at 10:38 AM, minutemancl said:

I bought my first house a few years ago through Rocket/Quicken and also have had nothing but positive experiences with them. They got me an insanely awesome rate a few months ago with a refinance during the pandemic as well.

Was your loan term extended back to 30 years again?

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1 hour ago, MKnight82 said:

Was your loan term extended back to 30 years again?

It was, but I was only 1 year into my original 30 year loan. With the money back in my pocket, the reduced rate, and the lower payments, I'm actually going to have the house paid off faster than if I didn't refinance (paying the same mortgage payments I was before the refi; I think I'm due to have it paid off in about 24 years).

At least, that's the way it was presented to me and what all the documents say. I was super skeptical of the entire process at first.

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3 hours ago, minutemancl said:

It was, but I was only 1 year into my original 30 year loan. With the money back in my pocket, the reduced rate, and the lower payments, I'm actually going to have the house paid off faster than if I didn't refinance (paying the same mortgage payments I was before the refi; I think I'm due to have it paid off in about 24 years).

At least, that's the way it was presented to me and what all the documents say. I was super skeptical of the entire process at first.

Probably if you pay it off.  They expect you to likely move again in 5 years and the refi resets your amortization schedule having you pay more interest than principal over that 5 year period.

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My GF and I Are currently under contract to close on our first house on the 29th of this month. Been a crazy journey, it was our 7th offer this year and man, did we get lucky. 

It was a sell by owner type deal that my mom actually found. Went to go see it and the owners really liked our young family. Apparently they got a bunch of calls from agents saying they were crazy for listing it as low as they did. We offered what they asked, they asked us to go $5k over, we said ok, if you leave some appliances…..they’re leaving the fridge, washer and dryer…..and boom, contract signed. 

Just had the appraisal done and it appraised for $30k over what we offered.

Crazy man, we got so lucky. 

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On 6/10/2021 at 7:50 PM, MKnight82 said:

Probably if you pay it off.  They expect you to likely move again in 5 years and the refi resets your amortization schedule having you pay more interest than principal over that 5 year period.

I see. I knew there was a catch. 

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On 6/12/2021 at 5:01 AM, holt_bruce81 said:

My GF and I Are currently under contract to close on our first house on the 29th of this month. Been a crazy journey, it was our 7th offer this year and man, did we get lucky. 

It was a sell by owner type deal that my mom actually found. Went to go see it and the owners really liked our young family. Apparently they got a bunch of calls from agents saying they were crazy for listing it as low as they did. We offered what they asked, they asked us to go $5k over, we said ok, if you leave some appliances…..they’re leaving the fridge, washer and dryer…..and boom, contract signed. 

Just had the appraisal done and it appraised for $30k over what we offered.

Crazy man, we got so lucky. 

Flip it bro 

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On 6/9/2021 at 9:39 AM, ET80 said:

Fascinating read, @big_palooka

I'm currently with them, had nothing but positive experiences. My original mortgage was with them, and refinanced during (just before, actually) the pandemic.

Should I shop around? I had a situation where I had a six month foreberance when I got laid off in 2016, should that factor into any decisions?

I would recommend shopping around. Find a local mortgage broker and you'll see they are cheaper by 25-30%.

Quicken is great as far as tech and marketing. They have some great people that work for them. They will however take complete advantage of people charging 3%+ points on a rate you can get cheaper elsewhere. They have to pay for all of that marketing after all. You can get some good deal with Rocket, but their game is fees and lots of them. 99.9% of the Quicken loan estimates people send me we find the same rates for a fraction of the cost.

The other thing to note, you don't get what you pay for there. They are massive. It's a boiler room operation. They are well trained desk jockeys who run scripts all day. Most those guys knowledge of mortgages doesn't extend past the manual in front of them and the training they did. Something to be mindful of. 

And your forbearance should not be a problem. If there is a deferred balance, they will factor that into the new loan. 

DM me anytime if you have questions or need a recommendation. I've been doing this 15 years and can recommend someone great in about any state. 

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Our society is all about rate, rate, rate. I had a clients yesterday, pre-approved with Quicken at 2.75% with over 2% ($8,000) in points. I showed them a 2.99, no points. ~$60 per month difference in payment and saved them $8,000 Quicken wanted to charge them. 

It would take them 11 years to recoup that cost. The average mortgage loan last 3 - 5 years. If you are not recouping costs in that timeframe, the loan is suspect unless you have a clear plan. Even then, within 3-5 years, we are typically looking to move, take cash out, lower the term, etc. 

My point is, don't make the conversation about rate. If the lender you are working is talking up having the lowest rate and best fees, etc. RUN because that is not how this business works. Nobody has the lowest and best anything. The market changes daily.

My advice to anyone out there refinancing or buying a home. Work with a professional. Look them up here -  https://nmlsconsumeraccess.org

You can see their work history. How long have they been doing loans? Are they jumping from one company to the next over a short period of time, etc. These are red flags.

A true advisor you can ask them to show you the lowest rate, with points. Then compare that to higher rate with lower costs.

"Rate" is marketing buzz word, that's it. Anyone selling rate is the used car salesman of the industry. The market is the market and everyone is playing in the same market. Yes, rate is important, but make it about the professional and the long term relationship and you'll win. You should have a mortgage guy in your pocket like any other trade professional.

 

 

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  • 2 weeks later...

@MWil23finally got around to talking to my broker about refinancing.  Looking at a 10 year fixed at ~2.3%.  Saves a little bit of money even as quickly as we're paying it off.  Every little bit helps!

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14 minutes ago, theJ said:

@MWil23finally got around to talking to my broker about refinancing.  Looking at a 10 year fixed at ~2.3%.  Saves a little bit of money even as quickly as we're paying it off.  Every little bit helps!

Awesome man! Glad you were able to get that done! Saving money while simultaneously paying it off is a win/win! :) Congratulations!!!

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On 6/15/2021 at 4:18 PM, big_palooka said:

I would recommend shopping around. Find a local mortgage broker and you'll see they are cheaper by 25-30%.

I “have a mortgage guy” (broker) and I swear by him. Dude got us an unbelievable rate and essentially goes through 6-10 banks, allowing them to bid against each other and work for me. Dudes unreal! Minimal closing costs and got us a 2.25% rate at 15 year. It was so great my wife was terrified we were getting scammed until she saw the paperwork and ran the information he gave us through the title company. :) 

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