Loan Depot - Excellent service, but I should have done my homework!
From reading the Loandepot reviews you will see that your experience will either be horrible or wonderful.I think the difference depends on which individuals you will be working with at Loandepot.
I feel very fortunate to have had Amir Zandifar and Steve Poltl handle the refinance of my vacation rental. They did it in a very professional and expedited manner. During the process I learned what I needed to know before applying for a new loan. I am not happy with the final result but I take full responsibility for being so nave.
Here is summary of what I would teach if I were offering a short course in refinancing. 1.) Do not buy points in most cases. The lower rate shown on your loan estimate will make you feel better but you BOUGHT that rate with your hard earned money. The difference in your monthly payment will be very little so the breakeven period will likely be eight to ten years away.
On one of my early loan estimates the quoted rate was 3.585 and I said it was supposed to be 3.5. They were quick to accommodate me but after closing I reviewed my various estimates and saw that when the rate went down to what I wanted the points went from 1.875 to 2.125. 2) Another way the lender can keep the rate estimate attractive is to roll some costs into the new loan. I refinanced $157,000 but the new loan was for $161,700 so there is a cost of $4700.00.
In addition I had closing costs totaling $7,116.70 and I had to bring $2,421.99 of my cash to the closing. In summary I might not have the loan long enough to recoup what I think was a very high cost to acquire. 3) Shop around. I didnt because the 3.5 rate seemed good enough compared to the 5.375 that I currently had.
4) One cost which seems to be an industry standard is the loan origination fee, generally 1% of the amount financed and I do not think you can steer yourself away from paying that. 5) Back to points, they are simply prepaid interest. If you are in a high tax bracket they might make more sense since they are fully deductible. Bottom line I should have chosen a loan with 4% interest and zero points rather the choosing the 3.5% rate with the 2.125 points added.
Again the service I received from Amir and Steve was outstanding.I applied for the loan at the end of May and closed it on June 19th.
Review about: Loan Depot Loan Refinance.
Reason of review: Good customer service.
I didn't like: That the rate and terms kept changing.