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Refinancing question

chicagocyfan

chicagocyfan

Active Member
Apr 11, 2006
139
71
28
Chicago
Is Lending Tree a good idea for someone who doesn't have much time to dedicate to refinancing?

Also, in talking with them I may have an opportunity to go from a 30 yr @ 5.375% to a 15 yr @ 3.25% (1 pt purchased at $3K). I'm not upside down on home but of course it has devalued quite a little and I have less than 20% equity.

Thoughts???
 
Sounds good to me. Would like .5 pt for 1500 better, of course. I would check local and see if anyone could match the deal.
 
chicagocyfan said:
Is Lending Tree a good idea for someone who doesn't have much time to dedicate to refinancing?

Also, in talking with them I may have an opportunity to go from a 30 yr @ 5.375% to a 15 yr @ 3.25% (1 pt purchased at $3K). I'm not upside down on home but of course it has devalued quite a little and I have less than 20% equity.

Thoughts???
Click to expand...

First thing you should do is check with your current lender, they may be able to streamline you. If you don't have 20% equity, I'm guessing they won't qualify you for 3.25%, that is best case scenario right now and less than 20% equity is not best case scenario. Other things you want to consider besides just the rate, how long are you going to be in the home? (you need the interest savings to pay off the fees)
 
I started out with Lending tree when I bought my house but they kept coming up with hidden costs they didnt first tell me about so I decided to look into a local bank and they did a lot better job than Lending Tree.
 
If you're less than 20% will you be able to get refinanced without incurring PMI or having to take out a second mortgage?
 
If you can refi now, it's a no brainer.

Can't speak to Lending Tree, but 3.25% with a 1 point purchase seems high to me. If you can shop it around yourself you can probably do better. It'll definitely be worth it in the long run.
 
chicagocyfan said:
Is Lending Tree a good idea for someone who doesn't have much time to dedicate to refinancing?

Also, in talking with them I may have an opportunity to go from a 30 yr @ 5.375% to a 15 yr @ 3.25% (1 pt purchased at $3K). I'm not upside down on home but of course it has devalued quite a little and I have less than 20% equity.

Thoughts???
Click to expand...

I just refinanced at 3.875% on a 30 year non-FHA loan and did not pay points. Paying that much to get a bit lower on a 15 year loan seems high to me.
 
Your local bank should be able to offer under 4% for 30 years as long as your loan to value is below 95%. 15 year rate can be as cheap as 3.25%, these prices including no buying of points.
 
chrismiller4isu said:
Your local bank should be able to offer under 4% for 30 years as long as your loan to value is below 95%. 15 year rate can be as cheap as 3.25%, these prices including no buying of points.
Click to expand...

I don't know if that's true or not, but if so, you're going to be buying PMI, which will offset a lot of the lower interest rate.
 
when i refinanced a few months ago, i could not find a single positive review for lending tree.

I called a few local banks (and brokers), but ended up going through ing direct online... if you're at 20% down, i highly recommend them; very low rates (their 5 year arms and balloons are mid 2%'s right now i believe.. fixed can't be much higher) and fees

*edit*: nevermind, just looked at their site: they don't have the standard fixed rate loans
 
Last edited:
Naughtius said:
I don't know if that's true or not, but if so, you're going to be buying PMI, which will offset a lot of the lower interest rate.
Click to expand...

I just got approved today through First Federal in Ames at 3.25 for 15 years...after the appraisal I was able to waive PMI also :yes:
 
Naughtius said:
I don't know if that's true or not, but if so, you're going to be buying PMI, which will offset a lot of the lower interest rate.
Click to expand...

Your PMI is only until you get down to 80%, whether you go with a bank, credit union or online institution you have to pay PMI insurance. And its true because i work at a bank.
 
chicagocyfan said:
Is Lending Tree a good idea for someone who doesn't have much time to dedicate to refinancing?

Also, in talking with them I may have an opportunity to go from a 30 yr @ 5.375% to a 15 yr @ 3.25% (1 pt purchased at $3K). I'm not upside down on home but of course it has devalued quite a little and I have less than 20% equity.

Thoughts???
Click to expand...

A lot of the lenders they use charge outrageous orignination fees, as others have said talk to your local bank. I tried Lending Tree a few years ago, and at least two of the lenders were a 2% origination fee, went back to my current lender, and they didn't charge me a dime to originate. Other thing with Lending Tree, your credit report takes a whole bunch of hits because they are shopping you around. You can have up to three at no damage to your credit score, but over three and it may hurt you.

The 3.25% is the rate for the perfect borrower. Most likely a 780 credit score, more than 20% equity, low debt to income ratio.
 
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