The Mortgage Banker at LoanDepot has been great to work with. He is very on
top of things. This is the second time I have worked with LoanDepot and I would HIGHLY recommend them for your home purchase or refi.
We originally refinanced with Loan Depot about 2-3 years ago. When the rates went down
they contacted us with a great offer. They lowered our rate at no cost to us, our mortgage will be paid off sooner, and we even received money back at closing because the closing cost credits were higher than the actual closing costs.
Working with LoanDepot was pretty easy. I'm a very busy person and I didn't have
to take any time out of my schedule to refinance my home. They emailed me the documents, things were signed via the internet. Most delays were caused by my lack of availability, not theirs. About 9 months after I refinanced, they called me up and told me rates had dropped and I could streamline another refi with no out of pocket expenses. This is one of the features I liked about them, the rate guarantee. This saved me another $200/month compared to the prior. They say, "No cost to you" but that's not technically correct because there are moderate fees, but they roll into the mortgage. I also suspect some of their fees may be higher, but that's my responsibility to research. I didn't have/take the time, so I guess I paid for the convenience. If the difference of a couple hundred dollars matters, research more thoroughly. LoanDepot may be right in line.
They kept me updated through the process, and it went pretty quickly.
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 naïve. 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 didn’t 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.
The loan process went great, but then they lost our first payment and then the
trouble began. After 1 1/2 years of calling and fighting through the automated phone system the company sold our loan to another company. We never got resolution on the first payment even though my bank sent verification and copies to them three times. Getting through the phone prompts to talk to a live representative is a nightmare and then you can never talk to the same person and have to start all over with problem. Any savings we may have initially received through LoanDepot was negated by the lost payment that we had to re-pay to avoid the loan default process.