Mortgage company recommendations

[SecondCor521]

Hi all.

My son is a soon-to-be first time home buyer.

I'm going to recommend to him either a 30-year (or maybe 20-year or 15-year, but probably 30) fixed rate conventional mortgage from a competent lender.

He'll have 20% down, and will be looking at starter homes or condos/townhomes. Owner occupied.

He'll think he'll be staying in the home for 5-10 years, so some points to buy down the rate may be reasonable.

I've done some research already and see the following companies as good options (listed in roughly descending order):

NFCU
LenderFI
BlueSky
Better
PenFed

(Lower, Aimloan, ICCU, and US Bank are all also on the list but don't appear competitive with the above.)

He doesn't need handholding, doesn't need marketing, just someone to competently close on time, with a competitive APR, and receive and apply payments.

Any others that people might suggest?

 

[rayvt]

Aimloan or Amerisave. Don't waste your time with anyone else. Well, maybe the mortgage company that Schwab will steer you to if you have an account there.

 

[rayvt]

"... looking at starter homes or condos/townhomes. "


Bad bad idea.
Why? Because those are bought by people who don't have much money and are looking for something cheap that they can afford. So guess who will be looking to buy it when you go to sell it. Right-----people who don't have much money and so can't/won't pay a lot for it.


I once had a neighbor who moved from a townhouse to a SFH. When they sold it, he said to me "We made more money on this house in 8 years than we made on our townhouse in 25 years."




The sweet-spot minimum is a 3 br, 2 1/2 bath, single-family house with attached 2 car garage . With no common walls with other dwellings.

 

[ERD50]

"... looking at starter homes or condos/townhomes. "


Bad bad idea.
Why? Because those are bought by people who don't have much money and are looking for something cheap that they can afford. So guess who will be looking to buy it when you go to sell it. Right-----people who don't have much money and so can't/won't pay a lot for it.


I once had a neighbor who moved from a townhouse to a SFH. When they sold it, he said to me "We made more money on this house in 8 years than we made on our townhouse in 25 years."




The sweet-spot minimum is a 3 br, 2 1/2 bath, single-family house with attached 2 car garage . With no common walls with other dwellings.

It depends. That is sometimes the case, but there are some nice townhomes in nice areas (at prices to match). DD is in one. She didn't want to take care of a SFH, but wanted her own place vs apartment. It's nice, nice view out the back (overlooks a big retention pond, with Forest Preserve behind that.

-ERD50

 

[thefist]

Last several years I’ve been using a mortgage broker. They will use multiple lenders and search for better rates and terms. Ask around your local area for recc’s on mortgage brokers.

 

[2HOTinPHX]

We used Provident for our last two home loans and refi. They were very easy to work with. Its been a few years since we paid off the loan and even that went super smooth.
Good website with live rates.
https://www.provident.com/

 

[ERD50]

Hi all.

My son is a soon-to-be first time home buyer.

I'm going to recommend to him either a 30-year (or maybe 20-year or 15-year, but probably 30) fixed rate conventional mortgage from a competent lender.

He'll have 20% down, and will be looking at starter homes or condos/townhomes. Owner occupied.

He'll think he'll be staying in the home for 5-10 years, so some points to buy down the rate may be reasonable.

I've done some research already and see the following companies as good options (listed in roughly descending order):

NFCU
LenderFI
BlueSky
Better
PenFed

Any update on this? I finally started the process, my CU rates aren't as low as I hoped, I'm checking with a mortgage broker that was recc to me (his rates were also higher than expected, but I realize he didn't state the points, so maybe zero?).

Since I paid cash for the house (used a LOC to avoid a tax hit), this is considered a 'cash put refi". Maybe the rates are higher on those?

I tried the provident link, they look to be 3.00% with 0.25 points? MY CU is 3.25% with 1.375 pts, the NFCU looks good @ 30 Year 2.500% 1.500 pts (but I have to join to get further), and LenderFi is also 30 Year 2.500% 1.500pts

I think it makes sense for me to pay points, I plan to hold the mortgage more than the typical 7 year b-e.

Or are these 'teasers' that won't come through as I go through the process? Thoughts?

-ERD50

 

[SecondCor521]

Well, soon-to-be is perhaps a bit of an exaggeration. My son probably won't buy until sometime mid-next year.

Rates are higher on cash-out refis I believe.

I always figured simple break-evens on points (points/delta in rate) and paid or didn't pay as appropriate. Historically I moved more than I expected when I was younger, and less frequently than I expected when I was older. Although that probably had more to do with my ex-spouse's preferences and my marital status than my age.

I used the phrase "competent lender" in my original post because I personally avoid mortgage companies I don't trust. I can get a decent mortgage with a good rate by shopping the well-known and trustworthy lenders, and the risk or hassle of having problems with a mortgage aren't worth going with anyone else in my view. I'm planning on suggesting the same approach to my son, although he is of course free to ignore my advice. So that would be my approach to your concern about teaser rates.

 

[Lewis Clark]

If he is eligible, I'd consider USAA. I've had good experiences with both USAA and Navy Federal Credit Union.

 

[SecondCor521]

If he is eligible, I'd consider USAA. I've had good experiences with both USAA and Navy Federal Credit Union.

He is (his grandfather is retired USAF), but USAA is apparently only doing VA loans now, and he doesn't qualify for a VA loan.

Navy Federal seems to have good rates and points, and he qualifies for membership there, so they are a strong contender in my opinion.

 

[ERD50]

Well, soon-to-be is perhaps a bit of an exaggeration. My son probably won't buy until sometime mid-next year.

Rates are higher on cash-out refis I believe.

I always figured simple break-evens on points (points/delta in rate) and paid or didn't pay as appropriate. Historically I moved more than I expected when I was younger, and less frequently than I expected when I was older. Although that probably had more to do with my ex-spouse's preferences and my marital status than my age.

I used the phrase "competent lender" in my original post because I personally avoid mortgage companies I don't trust. I can get a decent mortgage with a good rate by shopping the well-known and trustworthy lenders, and the risk or hassle of having problems with a mortgage aren't worth going with anyone else in my view. I'm planning on suggesting the same approach to my son, although he is of course free to ignore my advice. So that would be my approach to your concern about teaser rates.

Agree on that. LenderFi seems to get great reviews, if that means anything.

Thanks -ERD50