Hey All

I would like to jump on the refi bandwagon.  I currently have a vacation home purchased at 205,000 on 4/2007, 30 year mtg fixed, 6%, 161,000 original loan amount. 

I can see us moving there in 2 years and I forsee that I would probably have the loan for more than 10+ years - so I think paying points to bring the rate down will save me a few $.

Wells Fargo currently services the loan (I have had good customer service from them so far)  Yesterday they offered to finance my remaining balance, $158,000 at 5.25%, 30 year fixed, 1 point and 2166$ in fees (processing, appraisal, title, settlement, etc. etc. )

I contacted a broker who I have dealt with in the past (good customer service as well).  I got a rate of 5.125%, 30 year fixed, and 2500$ fees.

I am going to go only back 1 more time to the both of them to get their rock bottom price, and I imagine that they are both going to be right around the same ballpark

My question is should I be worried about going with the broker and having my loan sold and serviced by a potentially problem institution?  Wells Fargo has been great so far and what I read on the web they sound fairly strong.

What do you think?

Thanks

Keep in mind, even if you go with Wells, they might sell your loan and the servicing of your loan.  I would say go with the best deal but a broker works with multiple lenders thus is able to offer a better rate.

leggo:

Wells Fargo currently services the loan (I have had good customer service from them so far)  Yesterday they offered to finance my remaining balance, $158,000 at 5.25%, 30 year fixed, 1 point and 2166$ in fees (processing, appraisal, title, settlement, etc. etc. )

I contacted a broker who I have dealt with in the past (good customer service as well).  I got a rate of 5.125%, 30 year fixed, and 2500$ fees.

Unless you just forgot to put it in, it appears as though the broker is not charging you any origination versus 1 pt from Wells?  If that is the case, the broker is providing a far superior deal; lower rate and lower closing costs. 

As far as problem servicers - I have not had a customer complain in quite a while.  A lot of the bad ones have shut down.

Wells Fargo only has one 30 year fixed product and only one rate option for you.  A broker has multiple options.  They can go to whoever is leading the market that day in rate.  Wells Fargo is a good company and sometimes they have the best rate on certain situations, but often they don't.  Every loan has it's own characteristics for qualification: LTV, Credit, refi or purchase, income level, borrower assets, 2nd home, etc etc.  Lenders need to differentiate themselves from each other by offering niche products.  One might have better pricing for a 2nd home while another might be better for borrowers with high credit scores.  That's why a broker is so important.  They have access to different lenders and can match the right one to you loan characteristics.

As far as selling to serving companies, the troubled one's are gone.  I have instances where my lender sells a loan to Wells Fargo or Citi or Courtywide, but they have better rates than the company that they are selling the loan to.

See if the broker is approved with Wells Fargo.  They most likely are.  Do the loan through the broker with Wells.  Best of both worlds!

Hi Leggo,

   As a rule, I just can not see a consumer dealing with just one lender and coming out ahead on a rate. Within just four clicks of a mouse I can see (at this moment anyway) two leaders who beat Wells Fargo on a 30 year fix. My advise is to sit down with a loan consultant and shop around, or go see the one you used before with the "good customer service".