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Who's worse, lenders or realtors?

By BayArea following x   2016 Sep 21, 10:08am 2,372 views   22 comments   watch   sfw   quote     share    


I get a call from my mortgage lender yesterday saying that I have been pre-selected for a refi that can save me money.

Already annoyed and ready to hang up, I decide to stay on the line just to see what these goons would say.

They ask me a bunch of questions and then tell me that in order to know exactly the rate they can offer, they will need to run my credit to make sure it hasn’t changed since my loan originated.

I stop them immediately to evaluate that logic. I point out that I currently have a loan with them. And they are offering me a lower rate with a lower monthly payment but need to run my credit to be sure that I can afford the lower monthly payment compared to what I pay them monthly today. There was an awkward silence and then “it’s just our policy”. No, you assholes can’t run my credit.

I don’t know who’s worse, lenders or realtors?

#lickmyclit

1   Tenpoundbass   ignore (11)   2016 Sep 21, 10:22am   ↑ like (2)   ↓ dislike (0)   quote        

That cartoon is soooooo true.

My wife was telling me about all of the 0% offers, and the 5% cash back rewards that all of the cards are offering us. Even though we try to pay cash for most purchases.
I had to clarify it for her, that these offers aren't offered to anyone. Just people like us, that they know they can extract a pound of flesh out of and have good credit.
If we were still renters, and didn't build up our credit like we have by slaming on our mortgage. We would never see these offers.

2   joshuatrio   ignore (0)   2016 Sep 21, 10:27am   ↑ like (3)   ↓ dislike (0)   quote        

Hmmmm.. Tough call. I'd say realtors since I paid cash (and cut out the bank), but damn, I bet the other end of the candle is just as bad.

3   FNWGMOBDVZXDNW   ignore (2)   2016 Sep 21, 10:40am   ↑ like (2)   ↓ dislike (0)   quote        

They probably just service your loan. For their purposes, a refinance will have to qualify all over again, b/c they will have to sell the loan, and the rate that they sell it for depends on your credit. Anyway, you should be able to figure out whether a refinance will save you enough to merit the hassle and cost.

BOA services my loan at 3.375 out of one hand. The other hand is offering me refis at higher rates. It seems that the lending dept doesn't have access to the servicing dept data.

4   Dan8267   ignore (3)   2016 Sep 21, 10:44am   ↑ like (0)   ↓ dislike (0)   quote        

Marry, boff, kill: a realtor, a banker, an ISIS recruit.

Hmmm... Marry the banker, divorce him, and take half his money. Kill the realtor. Boff the ISIS recruit and send a video of it to his people so they will kill him.

5   Dan8267   ignore (3)   2016 Sep 21, 10:47am   ↑ like (1)   ↓ dislike (0)   quote        

BayArea says

That's old banking. In new banking, even people who don't need loans will take them and default. The purpose of a loan is so that you don't have to risk your own money while speculating. Furthermore, the bank doesn't care if you default because they just collect the loan fees and sell your debt to someone else.

6   zzyzzx   ignore (1)   2016 Sep 21, 11:00am   ↑ like (0)   ↓ dislike (0)   quote        

BayArea says

I stop them immediately to evaluate that logic. I point out that I currently have a loan with them. And they are offering me a lower rate with a lower monthly payment but need to run my credit to be sure that I can afford the lower monthly payment compared to what I pay them monthly today. There was an awkward silence and then “it’s just our policy”. No, you assholes can’t run my credit.

A blind call from someone who you don't really know who it is asking to run your credit sounds questionable to me. If you think it might be legitimate, and you can get a lower rate, ask if you can do this at your local branch and pay them a visit. I used to work at Wells Fargo sub-prime auto loan department, and refinancing car loans at a lower rate was normal and common. The people making the phone calls already had your info and new lower qualifying rate, along with new monthly payment info, and were really mostly just asking people to come into the office to review and sign the paperwork. This is how they prevented customers who were good payers from refinancing elsewhere.

7   Sharingmyintelligencewiththedumbasses   ignore (0)   2016 Sep 21, 11:14am   ↑ like (0)   ↓ dislike (0)   quote        

zzyzzx is deplorable says

I used to work at Wells Fargo sub-prime auto loan department, and refinancing car loans at a lower rate was normal and common. The people making the phone calls already had your info and new lower qualifying rate, along with new monthly payment info, and were really mostly just asking people to come into the office to review and sign the paperwork. This is how they prevented customers who were good payers from refinancing elsewhere.

Home loans are different. They will likely sell the loan, even if they continue to collect on it for the new owner, and to sell it, it will need a new credit score. the new buyer is bidding to buy $x amount of first mortgages, with credit profile blah blah blah, so they need to check the boxes.

Going in, or calling in yourself would be a good idea, or even better, trying one of the extremely cheap options online like cashcall mortgage, or quicken, even though they are a pain to work with, since you aren't buying, a delay isn't a big deal to you.

8   BayArea   ignore (0)   2016 Sep 21, 11:16am   ↑ like (1)   ↓ dislike (0)   quote        

Sharingmyintelligencewiththedumbasses says

cashcall mortgage

You guessed the company...

9   HEY YOU   ignore (7)   2016 Sep 21, 11:56am   ↑ like (1)   ↓ dislike (0)   quote        

Dumb ass overpaying buyers.

10   RecentCost   ignore (0)   2018 Apr 13, 12:18pm   ↑ like (3)   ↓ dislike (0)   quote        

Realtors are worse. They always say it's good time to buy, no matter what. By the way, realtors are just real estate agents/brokers who pay ~$600 a year to call themselves realtors. There isn't a test to pass or anything. If a lender is able to refinance the loan and save the borrower some money that would be beneficial. Although I agree the way they reached out in this scenario is annoying.
11   mell   ignore (1)   2018 Apr 13, 12:54pm   ↑ like (1)   ↓ dislike (0)   quote        

Realtors hands down, lenders just try to get your business but usually do not lie. Also the 0% interest CC offers are pretty good for rolling over debt at 3% or less (fees) while gaining leverage on successful investments yielding far more. Realtors just want to sell you an overpriced shack and lie through their teeth (fake offers etc.)
12   APOCALYPSEFUCKisShostikovitch   ignore (30)   2018 Apr 13, 5:29pm   ↑ like (0)   ↓ dislike (0)   quote        

Why do you think it was really your lender?
13   clambo   ignore (4)   2018 Apr 16, 7:08am   ↑ like (2)   ↓ dislike (0)   quote        

I know a very successful realtor in N. California.

When I first met her, she was a single mom never married. She was likely on welfare. She was nice and well spoken.

That was almost 20 years ago. Since then she married a guy and later got into selling houses. She makes a bundle. She is selling houses that often cost over 1 million bucks.

I wonder if any of her customers knew her background included no higher education, no ability with math.

She suggested I buy a smaller one of her houses. I said "Why would I want to pay the pensions of the people who work for the county? I would hate spending $7,000/year in property tax. The prices are ridiculous."

(I know a cool hotel in Baja Sur Mexico that would cost me less to live in than $7000/year.)

She: "I know! I don't know how this is going to continue."

I told her I won't take any of my capital out of my investments to buy in a high tax location in a high tax state.

I think if you live long enough, you become a renter or have another person come to live with you eventually.
14   everything   ignore (1)   2018 Apr 16, 2:03pm   ↑ like (1)   ↓ dislike (0)   quote        

Well, first these are banksters they do what the bosses say. They sell (or give, doubt that), your financial information. This is why we are getting cash out refi offers in the mail. They are essentially legally phishing.

Another thing about refinancing, most of the money is made on the front end of the loan.

With rates going up, some may be working in our best interest to get people refinanced into lower rates now.

I would have stopped the call right away and asked about cashing out some equity, just to see what the answer would be.
I would also ask for a document stating what credit scores get what rates
15   APOCALYPSEFUCKisShostikovitch   ignore (30)   2018 Apr 16, 2:07pm   ↑ like (0)   ↓ dislike (0)   quote        

Here's the deal: they're both criminally insane co-conspirators who bank their money waiting for the end - and to exploit the next generation of stupid cunts.
16   jvolstad   ignore (0)   2018 Apr 17, 3:31pm   ↑ like (2)   ↓ dislike (0)   quote        

How about Realtor's with their preferred lenders. Twice the slime.
17   RC2006   ignore (0)   2018 Apr 17, 3:49pm   ↑ like (1)   ↓ dislike (0)   quote        

jvolstad says
How about Realtor's with their preferred lenders. Twice the slime.


That's always a red flag.
18   pwagner   ignore (0)   2018 Apr 17, 3:52pm   ↑ like (2)   ↓ dislike (0)   quote        

I think there is massive collusion among the realtors (and Realtors) to keep commissions artificially high. The 3% buyer agent and 3% seller agent seems ridiculous — especially when that percentage is applied equally to $200k houses and $2,000,000 houses. It costs me $130,000 for two agents to work together to sell my tract home in 2 weeks? Wow, I'm in the wrong profession! I get offers in the mail to help sell my house where the commission is 3.5% total, which indicates to me that the selling agent is willing to take 0.5% commission. Why won't the buying agent take that commission too? In another take, the original Freakonomics book has a chapter on why real estate agents don't seem to act in their clients' best interests.

On the flip side, I feel much more comfortable with refinancing. (And, more recently, paying off the mortgage entirely.) I've always had ARMs, so have done 1 loan modification and 2 different re-financings in the last 15 years. I basically visit the financing part of Zillow and determine what is out there; then contact a few of the best prospects and let them know what I'm willing to accept, which is usually that they PAY ME refinancing costs and give me a low rate. I had a few deals fall through, but my last success was 6 years ago with a 5 year ARM @ 1.875% interest; my total costs were just about $0... I think I paid $400 for a (worthless) appraisal.

I screen all phone calls, spam-filter my email, and don't open snail mail unless it is 1st class mail addressed to me by name. Rarely do I encounter rogue refinancing salespeople.
19   mell   ignore (1)   2018 Apr 17, 4:15pm   ↑ like (0)   ↓ dislike (0)   quote        

pwagner says
I think there is massive collusion among the realtors (and Realtors) to keep commissions artificially high. The 3% buyer agent and 3% seller agent seems ridiculous — especially when that percentage is applied equally to $200k houses and $2,000,000 houses. It costs me $130,000 for two agents to work together to sell my tract home in 2 weeks? Wow, I'm in the wrong profession! I get offers in the mail to help sell my house where the commission is 3.5% total, which indicates to me that the selling agent is willing to take 0.5% commission. Why won't the buying agent take that commission too? In another take, the original Freakonomics book has a chapter on why real estate agents don't seem to act in their clients' best interests.

On the flip side, I feel much more comfortable with refinancing. (And, more recently, paying off the mortgage entirely.) I've always had ARMs, so have done 1 loan modification and 2 different re-financings in the last 15 years. I basically visit the finan...


Nice. Interest rates have been insanely low. I've had a revolving credit limit of roughly 50k utilizing roughly half for years now combining zero interest cards and rolling them over for less than 3% total interest incl. fees. Because of that I get refi offers to consolidate at 6%+ in the mail all the time but I have plenty of dough to pay them off anytime. Whenever I am thinking of paying off a substantial amount I get a new offer and roll over instead and reinvest in the market. Basically free money until the musical chairs stop.
20   Patrick   ignore (0)   2018 Apr 17, 4:30pm   ↑ like (2)   ↓ dislike (0)   quote        

pwagner says
I think there is massive collusion among the realtors (and Realtors) to keep commissions artificially high.


Yes, absolutely, but don't forget that our government is in on the scheme to fleece us for the benefit of realtors.

Almost all state DRE's (Department of Real Estate) are entirely staffed with realtors.

And of course almost all our Congressmen are on the take from the NAR, the second largest lobbyist in DC, so don't expect Congress to make any laws which protect you. They are too busy protecting realtor commissions:



https://www.opensecrets.org/lobby/top.php
21   bob2356   ignore (1)   2018 Apr 17, 6:33pm   ↑ like (0)   ↓ dislike (0)   quote        

BayArea says

I get a call from my mortgage lender yesterday saying that I have been pre-selected for a refi that can save me money.



I love those calls. I have a 10 year at .2.7%, I just laugh when I ask them if they can do better and they hang up quickly. I only have a mortgage because I refused to sell rental properties returning 10-13% to avoid borrowing at 2.7%. I'll take the 9% arbitrage any day.




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