Help me find good mortgage information
January 19, 2009 8:43 AM Subscribe
Why is the process of obtaining a mortgage so opaque and what websites have good information about it?
I am looking for a mortgage and am dismayed by the apparent lack of sophisticated information on the web about lenders and what kind of deals are out there. Bankrate.com seems useless -- it has a handful or rates that don't look realistic. Other websites (lending tree, etc.) are run by the banks and don't seem that helpful.
In many other areas of personal finance -- like buying a car, or buying a major appliance -- there are great websites with in-depth discussions and tons of free advice. (Consumer reports, edmunds, etc.) Same with mutual funds or other investments. (Motley fool, Morningstar.)
What's the deal with mortgages? It seems like the only choices are to shop banks one-by-one on your own time, or call up some mortgage broker -- and who knows what sort of commissions the broker is getting. It's like trying to buy a plane ticket before the internet -- opaque pricing and no way to sort through the options without talking to a middleman.
Is this just the way the world is? Is there any website out there that contains useful and non-basic information about what's going on with lenders and mortgages? Thanks
I am looking for a mortgage and am dismayed by the apparent lack of sophisticated information on the web about lenders and what kind of deals are out there. Bankrate.com seems useless -- it has a handful or rates that don't look realistic. Other websites (lending tree, etc.) are run by the banks and don't seem that helpful.
In many other areas of personal finance -- like buying a car, or buying a major appliance -- there are great websites with in-depth discussions and tons of free advice. (Consumer reports, edmunds, etc.) Same with mutual funds or other investments. (Motley fool, Morningstar.)
What's the deal with mortgages? It seems like the only choices are to shop banks one-by-one on your own time, or call up some mortgage broker -- and who knows what sort of commissions the broker is getting. It's like trying to buy a plane ticket before the internet -- opaque pricing and no way to sort through the options without talking to a middleman.
Is this just the way the world is? Is there any website out there that contains useful and non-basic information about what's going on with lenders and mortgages? Thanks
Mortgage brokers can be invaluable companions in obtaining a loan and purchasing a house. Just as an example, my mother was a loan officer and personal banker for Bank of America for thirty years -- she made a career out of understanding and navigating the system, and she knows all the ins and outs. Even she uses a mortgage broker in her personal life, and she's worked with the same broker for 15 years. She's a big proponent of developing a relationship with a mortgage broker. They're worth their weight; look for someone who's been around for awhile and has made a ton of loans, and shop around for a broker. Don't go with a broker who only started during the boom. Hopefully you'll start a relationship with someone who'll work with you for years to come.
posted by incessant at 9:45 AM on January 19, 2009
posted by incessant at 9:45 AM on January 19, 2009
What kind of mortgage you want, let alone qualify for, is a highly personal experience. A bank who is offering 30-year fixed mortgages at (for example) 5% may not offer you that rate, depending on your finances. That's not even counting some of the more creative mortgages (like interest-only and ARM, though there are fewer and fewer of them these days).
Is this just the way the world is?
Yeah, I think so. I don't know what the mortgage market is like right now (other than that it's extremely tight unless you've got a lot of existing equity to leverage), but I got my mortgage about 6 months ago- we did a lot of research and it still wound up being surprisingly opaque. However, the big breaking line for fixed mortgages seemed to be whether or not you required mortgage insurance (e.g. financing more than 80%), because then you need to involve not only the lending bank, but a third party responsible for providing the insurance at a rate all parties can agree to.
posted by mkultra at 9:47 AM on January 19, 2009
Is this just the way the world is?
Yeah, I think so. I don't know what the mortgage market is like right now (other than that it's extremely tight unless you've got a lot of existing equity to leverage), but I got my mortgage about 6 months ago- we did a lot of research and it still wound up being surprisingly opaque. However, the big breaking line for fixed mortgages seemed to be whether or not you required mortgage insurance (e.g. financing more than 80%), because then you need to involve not only the lending bank, but a third party responsible for providing the insurance at a rate all parties can agree to.
posted by mkultra at 9:47 AM on January 19, 2009
You want SmartHippo: http://www.smarthippo.com/. They're a startup but I think they have good amounts of data in the system already.
posted by mikel at 9:56 AM on January 19, 2009
posted by mikel at 9:56 AM on January 19, 2009
Best answer: The finance discussion board on Fatwallet.com has some good advice if you are willing to go through lot of threads. I found and used Pentagon Federal Credit Union (penfed.org) after researching mortgages on their site and elsewhere. There are ways to join even if you have no military affiliation whatsoever, no hidden fees and pretty straightforward.
posted by zeikka at 10:41 AM on January 19, 2009
posted by zeikka at 10:41 AM on January 19, 2009
I found the Mortgage Professor really helpful. Excuse the appearance, the information has depth and the site's putative goal is to assist buyers.
posted by ads at 12:19 PM on January 19, 2009
posted by ads at 12:19 PM on January 19, 2009
Have you thought about a lawyer? Why don't you get 2 or three pre-approvals, and then pay money to an accountant and a lawyer so they can talk you through the pros and cons of each.
posted by Lesser Shrew at 5:41 PM on January 19, 2009
posted by Lesser Shrew at 5:41 PM on January 19, 2009
Response by poster: (Late update)
After several months of searching, I found the forums at fatwallet.com to be the best place to read chatter about lenders and rates. That turned me on to PenFed, as zeikka recommended months ago (should have listened then!). I am closing in a few weeks, but so far PenFed is great -- very good rates, transparent fees/costs, and easy process so far.
posted by Mid at 12:43 PM on June 13, 2009
After several months of searching, I found the forums at fatwallet.com to be the best place to read chatter about lenders and rates. That turned me on to PenFed, as zeikka recommended months ago (should have listened then!). I am closing in a few weeks, but so far PenFed is great -- very good rates, transparent fees/costs, and easy process so far.
posted by Mid at 12:43 PM on June 13, 2009
Response by poster: (Even later update)
Just closed my purchase using PenFed. They were really great -- completely transparent about the rate I would get and the fees that would apply. I recommend them to all.
posted by Mid at 11:15 AM on July 21, 2009
Just closed my purchase using PenFed. They were really great -- completely transparent about the rate I would get and the fees that would apply. I recommend them to all.
posted by Mid at 11:15 AM on July 21, 2009
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I recommend you talk to a mortgage broker. You may end up paying an extra 1/8% for the loan, but a good broker will help make sense of the market for you.
posted by Nelson at 8:57 AM on January 19, 2009