[OT] Quicken Loans?

Dougster
Can good things still come out of Detroit? Anyone have experience working with these guys? Would you recommend?

45 comments

Latest

ime
8 years ago
If you want to play the chumps game. You should invest in yourself and build a house with your bare hands. In the organization i am building blah blah blah
TheeOSU
8 years ago
LOL
Hugh_G_Rection
8 years ago
I've pretty much lost my faith in the Mortgage and Financial industry and the capitalist system in general. That said, do your research on real financial and real estate web pages.... Unless you want to ask Nina if Dan Gilbert tips well.

You can also look up consumer complaints against a given mortgage lender as well. The opinions of consumers and other industry insiders carry much more weight than what anyone says about a lender on a titty bar website
RandomMember
8 years ago
I was looking at my gmail archive and I got a quote from Quicken in 2009, but went with another lender. Seems to me they are highly regarded (A+ BBB) but slightly more expensive. In my case it was plain-vanilla 30yr fixed.
gammanu95
8 years ago
RM - a 30yr fixed?! Refinance now. You are getting ripped off in interest fees. That's like getting a six year car loan. Look for a twenty year fixed on a bi-weekly payment schedule.

to the OP -hell no. Quicken is high pressure , scripted, and ime unscrupulous. They give you the initial loan; but then sell it to another bank like Chase or Citi.
Dougster
8 years ago
I'm thinking 15y or even 10y fixed if I can.
shailynn
8 years ago
In 2012 I refinanced for a 15 year loan on a house I had recently built and was living in for about 2 years. I have a high house payment but I had to do it considering the interest I was saving versus a 30 year loan.

Fast forward 4 years and I thought for sure I couldn't get a lower rate than I did in 2012 but now I can, so I am considering refinancing again which may save me up to $200 a month.

NOTE: the real Dougster would never had asked this question.
twentyfive
8 years ago
It doesn't always make that much sense to refi even if you can lower your interest rate because the interest cost being front loaded along with the fees charged , a better alternative if you are able to, just make extra principal payments that will effectively lower your interest rate by shortening the length of time needed to pay off your loan. Another strategy is take a HELOC and payoff your mortgage with the funds from that and pay off the HELOC as quickly as possible. As far as mortgage companies go you can negotiate with a bank that you have a relationship with a lot easier tha a mortgage company.
I agree with shailynn this doesn't sound like the Dougster we have come to know.
RandomMember
8 years ago
Gamma- I did refinance in 2012.

RandomMember
8 years ago
...incidentally, I bought a pretty custom home in foreclosure in 2009. Sometimes I show pictures of the house on my phone to strippers to lure them back to my house. My obnoxious form of "The System."
gammanu95
8 years ago
RM. I did not advise you to get a lower rate, I advised you to restructure your loan.

Twentyfive, you made some good points but to avoid interest is why I advised biweekly and not.monthly payments.
RandomMember
8 years ago
@Gamma- With a 3.125% mortgage and the tax break on mortgage interest, I can invest in 10 yr corporate dept and make more money by keeping the mortgage in tact. Mortgage debt is often a good thing to have because of the tax deduction. By your logic, I guess everyone should just pay cash for a house. Also, if rates eventually rise, having a fixed-rate long-term mortgage may be the smart thing.

Not trying to pick a fight, just curious why you think paying off a mortgage quickly is the right thing to do.
vincemichaels
8 years ago
He and s_j_gay are rooming together. Don't bother him, he's busy.
mikepure11
8 years ago
I just refinanced with them. Incredibly easy process. I cut my mortgage rate down from 4.375% to 3.875%. Only about $40.00 a month in savings, BUT....I have had my current mortgage only 10 months. so I didn't have too much equity into it. You get to "skip a payment", I got a $500.00 "friends and family referral" check, plus my escrow money back from my other lender. Nothing out of pocket, about break even on what I had put into the first loan already, and a lower rate. I would take that every day of the week.
san_jose_guy
8 years ago
Recommend for what, getting a mortgage loan?

SJG

Dominic77
8 years ago
I tried to get my bank to do bi-weekly payments when I refi'ed and they would not. It was like talking to GammaNu. (haha just kidding). So I end up just making a 13th payment myself and it almost approximates the same thing (I pay every 4 weeks / 13 payments a year). I think my bank was just brain dead. But I did get a good rate.

I should pay off the house sooner, but honestly, the mortgage saving (difference) is how I afford my SC habit. lol, but true.
skibum609
8 years ago
As an attorney the only mortgage lender I would ever deal with is a small, local bank. I have a problem with my loan, I walk down the street and talk to someone in person. Get a loan from quicken and watch it get sold a few times. No biggie you say? Try to sell it and give a clear title if one of the deals isn't recorded properly.
Dougster
8 years ago
Sorry guys. Like I've said before real estate is not something that's ever made alot of sense to me. Glad you guys are here to help guide me through it.
Dougster
8 years ago
Only got a couple of answers to specific question about Quicken Loans versus others.
san_jose_guy
8 years ago
Besides just the basic deal, like the down payment, the fees, and the interest, it will be the other terms.

Especially variability of interest, and terms for early pay off and refinance.

And mortgage brokers do not need a license, only the shop needs a license. So while the shop is responsible and they are supposed to be trained, I suspect that sometimes brokers may be marginal. But then at mortgage loan should not be that big of a deal, especially since other people handle the approvals.

I would really compare contracts.

But here, getting away from securities and into real estate issues:

https://www.amazon.com/Wealthy-Barber-Up…

SJG
twentyfive
8 years ago
^^^Dougster If I were you, assuming you are a market guy you have a bank that you deal with that's who I would be speaking to, mortgage companies exist because many people cannot get bank financing easily and they push them through the process (paperwork etc.) because they just don't know how to market themselves to a banker. I don't know anything negative or positive about Quicken Loans but I would assume that they are regulated so there is a certain level of service that you are paying for. I believe that most folks would be better off dealing with a local banker unless their credit score was below 720 or so, in that case you might benefit from a broker being involved. I believe butterman and flagooner work in that industry you might benefit from PMing them or possibly talking to your accountant.
Dougster
8 years ago
Actually I don't want to go with my current banker. Actually want to "stick it to them", so I am thinking of letting them think they are in the game, and then switch to someone else. A bit petty? Yeah, maybe, but I'm not above that. (Now does that sound like the real Dougster?)

I am mostly thinking of Quicken for the speed. Just trying to get a sense of if they are "fly by night" or not. :-)
twentyfive
8 years ago
I would switch banks I have done that when they were not providing me with what I needed there is always someone else out there I personally don't like dealing with brokers as they always add cost not necessarily value.
Now you sound a bit more like the dougster we are familiar with.
twentyfive
8 years ago
Che- Bundling the mortgages and selling them was not, and is not the problem. The problem was mostly about misrepresenting the quality of the bundled loans, and selling subprime loans at prime prices and now, as back in 2007 & 2008 brokers were and are more likely to misrepresent the quality of their paper than most banks.
Dougster
8 years ago
The models were good but the data they were feeding into them was bad. See Fool's Gold by Gillian Tett.
Dougster
8 years ago
Anyway, the tips have been good. I'm talking to them tomorrow: will be careful about the rate.

No way I would buy real estate with cash with rates this low. Tie up too much money I could put in the market instead.
RandomMember
8 years ago
"The quality of mortgages pushed by the government to people who should never qualified was the primary cause of the real estate crisis"
-----------------------------

Something like 80 percent of subprime loans were made in the private sector and had *absolutely* nothing to do with Fannie, Freddie, and the Community Investment Act.

LOL, not sure why I bother arguing this point, anymore. Blaming government lending to poor people is a zombie myth that simply won't die no matter how many times it's debunked. It's been repeated most recently by Larry Kudlow and Steven Moore -- two fake economists who are advising Donald Trump.

Dominic77
8 years ago
^^^That's the way I understood it. It had some well meaning intent to allow some (mostly) minorities to own homes that otherwise might not have been able to but there were consequences.
RandomMember
8 years ago
My comment was in reference to the federal government requiring private institutions to make loans available to normally unqualified borrowers.
------------------------------------
You're distorting the typical right-wing argument that Fannie and Freddie were pressured to make loans to unqualified poor people. What are you saying? The CRA put pressure on private firms to offer no-down, no-doc loans to poor people? Just ludicrous. The crash was concentrated in high-rent areas like California and Florida, not in the inner city.

This should be objective and completely non-partisan. Go ahead and blame Bill Clinton and Rubin for the lack of government regulation. You can also blame that nutbag Greenspan for keeping interests rates at 1%.

Sorry for ruining your thread @Dougster.

RandomMember
8 years ago
LOL!
This thread makes me think of the wonderful and prophetic closing quote delivered by Steve Carell in the movie "The Big Short:"

"I have a feeling, in a few years people are going to be doing what they always do when the economy tanks. They will be blaming immigrants and poor people."

Movie came out late in 2015 when there was a nagging realization that Trump might just take the nomination.

Lucking the vast majority of economists and policy makers understand that the 1970s-era government programs for the poor had nothing to do with the financial crash. We've got intelligent policies in place that make the banking system safer.

And Trump's bigotry will likely cost him the election, taking the GOP senate majority with him. Old white men better get used to the changing demographics of America.
Dougster
8 years ago
random: " Old white men better get used to the changing demographics of America."

Yep! Hilarious. The times they are a changing and the show is just getting started.
Dougster
8 years ago
Btw, my RE agent is warning against Quicken, suggests Wells instead. I'm going to talk with Quicken anyway. Just for fun.
twentyfive
8 years ago
Dougster remember the RE is also a broker and doesn't get paid unless at sale occurs the brokers interest is not to you unless you have a contract specifically where they act as agent for buyer def talk to quicken sounds like there might be a pricing issue, I still say you need a local bank it will be better for you. BTW Wells Fargo is reputable if you are dealing with the bank directly.
Dougster
8 years ago
What do you mean by pricing issue? I got the terms from them: everything was better than expected.
twentyfive
8 years ago
The broker may have had problems with Quickens appraisers, often a national company will use non local appraisers, probably Quicken has a large regional appraiser, and they tend to be more conservative about the total LTV, that may lower the appraisal value thus the amount a mortgage company will loan on a particular property. it can cause the deal to stall unless the seller is willing to renegotiate price or the buyer willing to put in more cash. capice
RandomMember
8 years ago
"The broker may have had problems with Quickens appraisers"
------------------------------------------------------------------------
True. Knowing @Dougster, he's probably bidding on Trump Tower or something of that nature. But if Quicken falls through, he can pay cash or borrow from Russian oligarchs.

What is this property @Dougster? A flat in NYC to house your stripper babes?
Dougster
8 years ago
Just a condo. Like I say, I'm not a big believer in real estate. Just ties up money you could make more on by investing in the market. I guess if I was married and with kids the situation might be different.

Only reason I'm buying at all is because it's sickening to think of all the lining of someone else's pocket my rent is doing. Would much rather spend than on trips to Detroit and strippers there.


RandomMember
8 years ago
Congrats! I bet you'll enjoy having your own place
Dougster
8 years ago
Looks like I can do it all online with Wells (they are actually a bit simpler) and they are just as fast. They do want a bit more down though. No biggie.
Dougster
8 years ago
Thanks, random. But, yeah, watch. I'll have bought the peak of the market, right, SJG?
twentyfive
8 years ago
I have had some good luck with real estate over the years, my home I purchased I 1996 couldn't live as good or as cheap as I do it costs me next to nothing under 1500 a month, the value conservatively is 3x what I paid for it wouldn't think of selling but in a great location nice piece of property on a lake. Did well with some cheap rental properties purchased in 1999 in a Florida city rented them out for 8 years then the city came in and brought them from me for a public works project, my profit was 625% not bad for an 8 year investment. I have owned the building that my business is in for 14 years other tenant rentals makes up 130% of operating expenses and I expect to lease the building to whomever buys me out in the next 6-10 years. So Dougster you can do well with real estate if you are smart and lucky, I know some of the folks here don't think I'm so smart, I guess I'm lucky that's even better.
RandomMember
8 years ago
@Dougster: These condos in close proximity to high-paying jobs in finance will always do well. And like I said, I bet you'll really enjoy having your own place. It's more than just an investment.

Sounds like you have a lot of experience @25.
twentyfive
8 years ago
Dougster-The peak of the market is always advancing, if you overpay for real estate just hang on to it for a while it will go up again. You are in NYC right, in 1950 my dad purchase a home in Long Island paid $7,000. everybody thought he was nuts, when he retired to Florida in 1980 he sold that same home for almost 2 million dollars so remember real estate is just like anything else hold it long enough the peak of the market doesn't mean a fucking thing.
Dougster
8 years ago
@twentyfive: yeah, some of the old timers at work have told me how they scored big on NYC RE, got a little nervous in 2008, but just held through it.
Dougster
8 years ago
@random: I'm not sure. IMO, there is going to be a big shake out in finance now as everything becomes automated. The smartest fintech guys will make a killing, much of the old money is going to have problems. Some of the old money is getting very worried and throwing ungodly sums of money to hire the top quants: some of them just a few years out of college.
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