FrugalFran wrote: Why do people agree to those floating rates anyway? I could see it if you're a flipper and you're getting a very low rate, but you're going to be selling the house in three months. For everyone else, I don't get it.

Well it depends on your time horizon. They also offer 5, 7 and sometimes 10 year fixed and then floating thereafter. If you only expect to be in your home less than 10 years, it actually makes financial sense to chose one of those options. You are taking risks, but you are also lowering your interest rate for those years and if you move, you'll have to refinance to the market rate anyway.

Why do people agree to those floating rates anyway? I could see it if you're a flipper and you're getting a very low rate, but you're going to be selling the house in three months. For everyone else, I don't get it.

Yes, thank you for clarifying, I meant best fixed return. Do not get a 1 yr floating rate. You'll get screwed.

FrankN wrote: I 100% agree. You should always look for the lowest possible rate. Over the life of a mortgage that could save you BIG TIME bucks!

I'd make one change to that. Look for the lowest rate and best terms long term. When we were buying we could have got a cheaper mortgage than the one we settled on, but all those deals were for one or two years. By taking a slightly higher rate but getting a guaranteed life-of-the-mortgage deal we've saved a lot, especially as the market changed. The bank keeps trying to change our terms, and we keep refusing to let them!

FrugalFran wrote: I would definitely look for the lowest rate. Customer service is all fine and well, but my main concern would be the bottom line. As Wanderer said, they're going to sell it to someone else anyway and you're not going to have a say in that, so shopping by rate makes the most sense to me.

I 100% agree. You should always look for the lowest possible rate. Over the life of a mortgage that could save you BIG TIME bucks!

I would definitely look for the lowest rate. Customer service is all fine and well, but my main concern would be the bottom line. As Wanderer said, they're going to sell it to someone else anyway and you're not going to have a say in that, so shopping by rate makes the most sense to me.

Reminder ... generally who ever handles your mortgage application/approval will package the loan and sell it to large non-financials (generally on the secondary mortgage market so don't fall in love with your lender they won't be around long). The lenders need the money to re-lend to some ones else.

Lexie wrote: Which do you think is better Frankn? Having your mortgage with a bank of a private lender. There's just a hint of leery in me when it comes to private lending. I've been burned a time or two on debt reduction and rent to own. Opinion.

For me, its 100% depending on the rate. service is rather unimportant to me b/c I plan to pay off my mortgage each and every month. Whoever can offer me the best rate is the person I would go with.

Lexie wrote: Which do you think is better Frankn? Having your mortgage with a bank of a private lender. There's just a hint of leery in me when it comes to private lending. I've been burned a time or two on debt reduction and rent to own. Opinion.

i am the opposite.I don't trust the big boys and firmly believe in member owned credit unions. By their very nature, they are better equipped to help the average Joe than a large, faceless federal institution.

Which do you think is better Frankn? Having your mortgage with a bank of a private lender. There's just a hint of leery in me when it comes to private lending. I've been burned a time or two on debt reduction and rent to own. Opinion.

I don't know of any sites, but I would call a few large banks as well as a few credit unions in your area and ask for quotes based on your financial background. That is what I am doing right now.

Ergonomic wrote: Hi I was wondering if you could help me with an opinion.

What do you think of mortgage comparison sites such as mortgagebroker.org.uk? They promise unbiased opinion on mortgages? Do you know of any such sites in the United States?

Sites like HSH.com compare mortgages, but I've never used one so I can't tell you if they give good deals. There was a clampdown in 2013 that stopped them getting kickbacks for selling more expensive mortgages so you get better deals, but a lot of the large banks don't list with brokers anymore so if you want their rates, you'll have to go to the banks directly. I think Wells Fargo is one of the banks that doesn't use brokers, but I'd have to check.

Hi I was wondering if you could help me with an opinion.

What do you think of mortgage comparison sites such as mortgagebroker.org.uk? They promise unbiased opinion on mortgages? Do you know of any such sites in the United States?

A mortgage broker is suppose to locate lending options for a potential client. If they aren't doing this why have them. Often times realtors keep lists of lenders and can refer you. Or you can track lenders on your own. Depending on the area of the country you may find credit unions, local and regional banks and the big banks will lend. There are also non-banks that lend. Start with a search engine and see what you might find in your geographic area... Finding a lender is a big job but the results could be for thirty years so the time is well spent to get what works for you.

Hi I was wondering if you could help me with an opinion.

What do you think of mortgage comparison sites such as mortgagebroker.org.uk? They promise unbiased opinion on mortgages? Do you know of any such sites in the United States?