Online Mortgage Co's

[fastersteve]

Has anyone used an online mortgage company like DiTech or Lending Tree for a refi? Any experiences good or bad are appreciated.
Thanks
FS

[eagleeye]

I researched them when I built my house last year. They are basically a middle man the same as your local banker,except, in my opinion, they market themselves to people with less than stellar credit with attractive interest rates. They do this because they charge high closing costs and tack on extra points at closing. I am getting ready to refinance as soon as the feds cut rates again and I will try to deal directly with the mortgage company as opposed to the middle man.

[KINGTUT]

nay,nay says patch the pony, stay away...........

[checkthisout]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: fastersteve</div><div class="ubbcode-body">Has anyone used an online mortgage company like DiTech or Lending Tree for a refi? Any experiences good or bad are appreciated.
Thanks
FS </div></div>


They aren't a mortgage company.

They are an online service that provides leads to mortgage brokers for a subscription free.

Mortgage brokers are salesmen and the loan must still orginate from a normal bank or mortgage lender with the normal origination fees.

Brokers specialize in getting you more than you can borrow with generous appraisals. The broker makes money by tacking on fees in addition to what the bank already charges.

Your best bet is to go to the bank that already holds your mortgage or to a local bank and deal with one of their brokers directly.

[johnm]

i think ditech is part of gmac. we used to have gmac for our home. gmac was ok for me.

john

[short_stuff]

When Ameriquest was still around, I got them to give me a quote on a 15 year fixed rate refi. They thoroughly screwed up the paperwork (after I had given them the requested documentation in person), and sent a quote package to my lake house address. When I finally got it, the quote was for a variable rate north of 12% for 30 years, instead of the fixed rate and 15 years that they were supposed to quote on. Needless to say, I got away from them as fast as I could.
For the poster that said to just go to your current mortgage company, I did that on my last refi 4 years ago. To make a long story short, they took twice as long as other mortgage companies would've taken to process the paper work that they had on hand, and I ended up having to accept a 1/2 point higher percentage rate because of their feet dragging. I was not pleased, and told them that at closing.
I worked for a mortgage company back in the 80's, and I don't trust mortgage companies or mortgage brokers any further than I can toss 'em. I put them down there with lawyers and insurance companies. imho

short_stuff

[fastersteve]

Thanks all.
I am using my current lender, just wanted to investigate other options.
FS