July 26, 2012.
Being in the local real estate and property management business here in Fairfield County, Connecticut for close to 20 years I am constantly asked to recommend mortgage companies.
Mortgage originations are available from a number of different companies:
- Local banks to national companies.
- Mortgage brokers.
- Mortgage bankers.
- Internet mortgage companies.
This week I have did a comparison of a few companies for a conforming $417,000 refinance mortgage, primary home, 740+ credit score, greater than 80% LTV, no money out type of loan. Below in the chart you will see the breakdown of rates, fee’s, Principal and Interest payments.
All of the below companies said the process of the refinance loan would take 30 to 45 days depending on the lender.
Tip ~ if you are just beginning to look at mortgage rates for your area a good benchmark to use for mortgage rates and fee’s is at BankRate.com.
When looking at the cost of a mortgage it will break down into four groups:
- Mortgage rate.
- Bank fees and Appraisal fees.
- Attorney Fees including title work and insurance.
- Prepaid items including taxes, insurance and pre-paid interest (depending on closing date)
Group 3 and 4 will be the same with any lender, but not group 1 and 2.
1. For the example above I actually have used 3 out of the 7 companies in the past for mortgages.
2. Small Mortgage Company F, I found on BankRate.com with the lowest offered rate.
~ Mortgage companies carry and specialize in different loan products and so one company might do very well in conforming loans but not in jumbo loans or with refinancing versus purchasing. For example :
The Nationwide Bank D has a special incentive program for new home buyers that would put it in the top contenders for that category and Local Community Bank A had some of the best rates for jumbo mortgages.
~ Dealing with a local company does have its advantages with service and accountability.
~ Sometimes you can get better rates with these internet mortgage companies but recently with one of my customers it took 6 months to close on a simple refinance like the example above.
~ Mortgage rates are like the tide and change daily, do your due diligence and get recommendations from friends, real estate agents, associates and then research to see what company and product best fits your needs.
~ Unlike other business that would reward repeat customers and referrals do not expect any discounts. Focus at the end results, who can deliver the best product, with the least amount of aggravation, at a price you can afford and on time.
To find more information click on links below:
David Popoff is a Connecticut license real estate agent in lower Fairfield County. He has lived and worked in the area for over 30 years and now reside in Darien since 2004.
- Member of the Multiple Listing Service, MLS.Member of the Connecticut Association of Realtors, CAR.
- Greater Fairfield County
- Member of the National Association of Realtors, NAR.
- Green Affiliations.Contact David Popoff at William Pitt Sotheby’s for all your real estate needs in Darien, Greenwich, New Canaan, Rowayton and the rest of lower Fairfield County.
- Realtor GREEN designation by the National Association of Realtors.
- David Popoff is an accredited LEED Accredited Professional (LEED AP) Homes and USGBC member of the Connecticut chapter (CTGBC).
- Associate member and an accredited Certified Green Professional (CGP) of National Association of Home Builders (NAHB) and the local chapter HBRA-Fairfield County, Ct. .