Refinance advice

**lgw** · 02-01-2009, 05:56 PM

As some of you may know, DH and I are refinancing our house, going from a 30-year mortgage at 5.5% to a 20-year mortgage at 4.875%. Our loan officer phoned yesterday to let us know that she is leaving our mortgage lending co. and going to a mortgage brokerage house. She said she would be happy to quote us a rate at her new place of employment.

When I asked her the benefits of her quoting us at the brokerage, she said she can usually beat the lenders. The downside is that as soon as our refinance closes, it is sold to a mortgage lending co. The loan officer said our loan, in all likelihood, would be sold to our current mortgage lender, Chase Home Finance. But it could go to any lender -- Countrywide, Wells Fargo. She said she could close on our refinance more quickly than our refinance with our current mortgage lender.

So I was hoping there were folks here familiar with working with a mortgage broker. Is it risky? Could we get a better deal than our current offer? Our current offer is locked in through the beginning of March.

**mombottoo** · 02-01-2009, 06:06 PM

Years ago when we refinanced we went directly to a mortgage broker. We ended up getting a decent rate and the company who bought our mortgage was a fine company and they never resold our mortgage so I was okay with it.

We paid the darned thing off so long ago though, that I can't even remember the name of the company...

**sabrelvssammy** · 02-01-2009, 06:40 PM

how far into it are you ? have you had an appraisal yet...if so...make SURE it is going to be transferrable and the appraiser is on the new lenders 'approved' list...if not..you'll need another....

**annertak** · 02-01-2009, 08:18 PM

I, personally, have always used a mortgage broker, but I do know you have to watch their fees. Broker fees can be higher than a banks fees. I also work for a custom home builder, and most of our customers find that they can get lower closing costs thru a bank. That said, brokers have more flexibility, and more avenues to find you a good rate, etc. They are not tied down to just the programs the bank offers. It sounds, though, like you are already approved through the bank? If so, then I would only switch if the mortgage broker can bring your interest rate down more, and as was previously mentioned, if your appraisal will transfer (though it should).

Good luck!

**sabrelvssammy** · 02-01-2009, 09:23 PM

but don't it for granted that the appraisal 'will' transfer... when i was originating up in indy (okay 10 yrs ago) but i can't tell you how many times buyers switched in the middle of the loan (either coming to us or leaving us) and their appraisals were not valid...sometimes all it took was getting the appraiser added to the approval list...sometimes they weren't accepted... be safe... MAKE SURE>>>>

**patticakes** · 02-02-2009, 12:00 AM

Ask about getting the Yeild Spread Premium rebated to you to offset the cost of the loan if you go with the mortgage broker instead of the banker.

**lgw** · 02-02-2009, 08:16 AM

Our loan officer said everything would transfer. She has been directing our refinance from the start and said if we were to stay with her following her move to the brokerage house, it would be seamless.