Refinancing...need advice

**Jaded** · 11-02-2007, 08:42 AM

I'm going crazy trying to do a refinance! I went through Lending Tree, and I have two offers I consider good, but one company has a lot of complaints with Consumer Affairs. I don't want a company I'm going to have to hassle with, but this lady I've been talking to is very nice, very professional, and very attentive. The other is offering almost a point higher interest rate, but their company is rock solid, no complaints anywhere I can find.

Both have a good standing with the BBB and Lending Tree.

I really need to get some money to get this car fixed, pay back taxes, and also to get this house fixed. I have a high interest rate on my current loan, so anything less than 7% is good for me.

I'm only trying to get $10,000 out. I haven't had time in the last few days to even think about it, but Monday, I'll definitely be doing something.

If it comes down to these two companies, though, would you go with the cheaper, or the better? I'm going to try to get the better company to come down on their rate a little. Actually, even with the rate they are giving me, the payments would be a little less than what I'm paying now, so I could pay extra and catch up that extra 10 years they're adding on.

**LexTysMommy** · 11-02-2007, 08:46 AM

What were the hassles with the one company? What were the complaints? Did you go to bankrate.com and sill out difference in the 2 interest rates and your payments and intrest?

**Jaded** · 11-02-2007, 08:50 AM

Originally Posted by LexTysMommy

What were the hassles with the one company? What were the complaints? Did you go to bankrate.com and sill out difference in the 2 interest rates and your payments and intrest?

Complaints were about numbers being different at closing than the offer. I'm not that stupid. I'd get a good faith estimate, and I wouldn't sign anything if it was different and not in my favor. Also complaints about them promising to close in two weeks, and not closing for months. I just don't want to jump through all the hoops, then be surprised and out of a loan at closing. It almost sounds like they make you wait so long that you're willing to accept the changes at closing just to get the money. No servicing complaints after getting the loan, just before.

Nope, didn't know about bankrate.com. Thanks.

**LexTysMommy** · 11-02-2007, 08:55 AM

I would say if you can lower the other company (no complaints company) to a lower rate then go with that one, otherwise jsut be smart about the closing and dotn get sucked into anything that they didnt promise you before closing. After that I cant think of any problems you may have with them and the lower interest rate would be great! Good luck with whatever you chose!

**McD** · 11-02-2007, 09:12 AM

I personally would never go through a financial institution that I had doubts about.

I would attempt to negotiate the rate with the more reputable company.

**sdrjeolsen** · 11-02-2007, 10:23 AM

I'd go with the more reputable company too. Often you have to pay some things up front before it goes to closing, if so and then they mess with you, can you walk and still get your fees back? Probably not. That would be my concern, how long will they string you along? Then by the time they are done with you, you are willing to pay whatever just to get it over with. I say try to use them as leverage with the company that has the better reputation to see if you can get a lower rate.

**frugal-fannie** · 11-02-2007, 01:02 PM

Originally Posted by sdrjeolsen

I'd go with the more reputable company too. Often you have to pay some things up front before it goes to closing, if so and then they mess with you, can you walk and still get your fees back? Probably not. That would be my concern, how long will they string you along? Then by the time they are done with you, you are willing to pay whatever just to get it over with. I say try to use them as leverage with the company that has the better reputation to see if you can get a lower rate.

My friend just had the same situation. she got a copy of the quote rate and forwarded it to the other company. They matched it so she is a happy camper.

**DAAC3DEC** · 11-02-2007, 02:42 PM

Originally Posted by MrsMcDowell

I personally would never go through a financial institution that I had doubts about.

I would attempt to negotiate the rate with the more reputable company.

I totally agree with Mrs Mcdowell!!!!!!!

**cottageliving** · 11-09-2007, 09:28 PM

I agree with what Frugal Fannie wrote. Every lender is looking for business these days - get the actual Good Faith Estimate from each lender, and send the 'cheaper' company's to the other, more reputable company.

One of three things will occur:

1: You will never even receive the GFE from the cheaper lender because it is a legally binding document - by law they cannot be too far off between closing costs and GFE costs. This means your only real choice is the better lender.
Or,
2: you'll get the GFE from both, and you'll see that the cheaper company has disclosed less in legitimate costs/fees than the reputable company. This tells you that they are not being up-front, and that you should go with the reputable company.

3: The GFE's are similar in costs/fees, and only the rate/term is better with the cheaper company. If this is the case, then send that GFE to the reputable lender and see if they can/will match the rate and terms.

My concern is that if the cheap company's closing are oftentimes delayed or the loans blow up at closing, they are using that as a pressure tactic to get you to take the loan on their new terms. Most borrowers at the closing table will take a change even if it is not to their advantage since at that point they are ready to close. It sounds to me like a little bit of predatory lending may be going on, but that may not be the case.

It could also be something as simple as that when that cheaper lender was so busy due to the crush of loans they were closing, they simply could not keep up. How long ago were the complaints? If they are all from 2005 and 1st half of 2006, then this could be the case. If they still had complaints in the past 6-9 months, I would skip them.