How many of you out there have gotten a call from Mortgage Investors … or more than one call … or a whole slew of calls … at all hours of the day and night … wanting to “save you money” by refinancing your VA or other government backed loan?
They claim “it won’t cost you anything” because all of the costs are tacked onto the loan and “aren’t up front”.
Well, the rhetoric of the “assistant loan officer” is another factor that isn’t exactly “up front” either.
What you can’t find out in this introductory call is what it’s going to cost you to use this company to refinance your home.
The “assistant finance officer” doesn’t admit to knowing anything … like what their fees are … like how much are they going to tack on to the end of your loan for the privilege of letting them “help you save money”.
You’ll have to set up an appointment for a “loan officer” to come to your home to discuss all of these things with you. He can answer all of your questions when he talks to you in person.
The “assistant loan officer” wants to know 1) what your current interest rate is on your loan and 2) what the balance is on your loan.
They already have a good idea of what your loan interest rate is because they know when you last financed. They can look it up. They’re basically confirming data they already have a ball park idea of.
Why do they want to know the outstanding balance of your loan? Do they have a minimum amount that they will refinance? Just curious. Why does your loan balance matter?
They might refer you to their site. I’m not going to reference it here now. It can be “googled”. Sure, you’ll see a lot of testimonials and letters of affirmation from various government agencies indicating they aren’t doing anything illegal.
What their site doesn’t give you is any actual information of what refinancing a loan with them will actually cost. Just because they’re “not doing anything illegal” doesn’t mean that they’re giving you the best deal out there.
If you go to the VA site and look up VA loans, you’ll get a rough idea of what it should cost to refinance. A reasonable amount should be somewhere between 3 and 5% of your outstanding loan.
I actually talked to one of their “loan officers” about five or six years ago. I got the whole smear about how this was such a great deal for me, how much I was going to save over the life of the loan, no upfront costs.
What I noticed when the final document was drawn up was that Mortgage Investors were tacking on more that 10% of the outstanding loan amount to the end of the loan.
…MORE THAN 10%.
Those are some pretty hefty closing and refinancing costs for simply refinancing … and … no … I wasn’t adding anything on to do home improvements or anything like that. The “greater than 10%” was the sum of all of the fees they were going to collect to simply do the refinance.
I said “Thank you … but ‘no’.”
When I finally got the “loan officer” out of my home I felt like I needed to go wash my hands.
After I get a call from them, I feel like I need to not only wash my hands but also clean my ear.
Today, I added their number to my “blocked numbers” list.
My suspicion is that their “assistant loan officer” title is their glorified name for a telemarking telephone operator. Their business model is based on the sleazy automobile dealership “Let’s make a deal and I’ll go get it approved by the mysterious ‘Mr. Big’ in the back office. You do get to meet “Mr. Big” and you discover he has all of the charm and nuance of a used car salesman pressuring you with the well trained slight of hand of a pickpocket.
You shouldn’t be refinancing your home with people that operate their business like a snake oil side show … even if some idiot working for the government says they’re legit.
If anyone has had a different experience, I’d like to know.
If you have already refinanced a VA loan through Mortgage Investors Corporation, read and carefully review these two links: