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    Thread: Non-traditional Bank Mortgage Refi

    1. 06-28-2020 06:17 PM #1
      Hi, I don't know that I am using the correct term in my subject. I have had 3 mortgages through brick and mortar banks, Wells Fargo, Suntrust.

      As I go to refinance my mortgage the lowest rates I am being offered are from a mortgage broker that my neighbor refered me to. He is using United Wholesale Mortgage who he says will most likely tranfer my loan to LoanCare. Because I don't see these banks locally with branches I am calling them non-traditional banks. They are offering us 2.99% with 3.006% APR, fast closing, no home appraisal. All otther banks came in at 3.375% or higher with up to 90 day closing.

      My wife and I have exellent credit (800+), no debt besides mortgage, stable w2 jobs, lots of savings in 401ks.

      Is there anything to be wary of with using these lenders? I am very suspicious of things that sound too good to be true and this is one instance where my suspicious instinct is kicking in.

      thanks in advance for your input.

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    3. Member HotCarlWeathers's Avatar
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      06-30-2020 10:44 AM #2
      Hi jmvar,

      You don't have anything to worry about. I just refi'd and thought the same thing when my broker came back with a low rate loan underwritten by UWM. I thought "what is this off-brand crap?" but then did some reading and learned it's totally legit—basically raw banking/lending without any branding/marketing/flash.

      It's kinda like buying food from Costco vs. Target: Retail Lenders (Target) deal directly with consumers/borrowers, have to market to borrowers, work through the process with borrowers...you get the picture. Wholesale lenders (UWM and the like) deal only with mortgage brokers (in this analogy, the Costco member), and at a higher/bulk volume. No marketing, no consumer interfacing = lower rates as the broker works as the middle man between the lender and the borrower to get the mortgage loan off the ground.

      Your mortgage broker is the restaurant that's cooking you dinner, and they're going to buy direct from the supplier: Sysco/Costco/Restaurant Depot (wholesale mortgage lender) vs. Target/Kroger/Wegman's (retail lender/bank).

      UWM, in this case, functions as a bank that sells mortgages through brokers and maybe even other banks, but not direct-to-consumer like Chase, BoA, etc. They are somewhat unique in that they service loans as well, so there's no guarantee that they will actually sell your mortgage. FWIW, my refi experience with UWM was crazy easy: they pulled all of our documents for us, had us e-sign everything, and didn't make us jump through hoops. I think we closed in less than a month from start to finish.
      Last edited by HotCarlWeathers; 06-30-2020 at 10:48 AM.
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      Yesterday 11:25 PM #3
      I'm looking for a 25 year cash out refi under 3% I have perfect credit. Where can I find such a loan?
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