Was it Really That Easy to Refinance with Priceline?
Written: Feb 18 '03
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Pros: Good rate, reasonable time frame, helpful loan officer, no surprises at closing.
Cons: Getting a call returned by the loan processor was like teaching a cat to dance.
The Bottom Line: Refinancing a loan is never exactly an enjoyable process. Priceline made it fairly easy, though, and while they weren't perfect, I'd recommend them.
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| kazu's Full Review: Priceline Mortgage |
In August 2001 I composed an Epinion dealing with one of the more stressful experiences of my adult life, refinancing my mortgage with Wells Fargo Home Mortgage (still listed on this site as Norwest). That tale had a happy ending but getting there was a little rough. I ended up bestowing three stars upon Wells Fargo for getting me through the process relatively unharmed.
This time I was prepared for similar hassles. It was November 2002 and rates were even lower than they had been the last time around, so it was time to refinance yet again. Sigh... I gritted my teeth and investigated BankRate.com, comparing mortgage lenders and rates. I logged on to Epinions and read reviews of Priceline, which seemed to have a polar division between Priceline lovers and haters. After careful consideration (and the desire to do this online and avoid calling a lender - I hate using the phone), I decided to give Priceline a chance. Their rates were among the best and they offered guaranteed closing costs of $1898 for a refinance (or a few hundred higher for an initial home purchase).
My initial request(s) to Priceline
The principle behind Priceline is that you can make your own offer and they'll let you know whether it has been accepted or not. Because of that I figured it wouldn't hurt to name my own interest rate. To be safe I selected a rate for a 30-year loan which was 1/8 of a point below the going rate listed on their site. According to their site I'd receive a response within 6 hours. I waited. I checked my email. I checked it again later. Nothing arrived within 6 hours, or even 24, but I did receive a response the next day. My requested interest rate was declined, but I received offers from a few lenders - with rates at least half a point higher than the ones listed on Priceline! So much for that idea.
Later I returned to the Priceline site and elected to apply for a refinance at the rate listed on the site, 6% with no points for a 30-year loan. The next day I received email telling me my application had been accepted, and my credit card was charged $250 for the non-refundable deposit which was credited to my closing costs. Shortly thereafter I received a call from the loan officer, who immediately put me at ease. He answered all my questions and was very knowledgeable about the whole process. He made it seem easy, and it was.
Paperwork and waiting
My paperwork was sent overnight via Airborne with a return envelope to send it back the same way. Everything I had to sign was marked and nothing was a mystery - thank goodness. Maybe it seemed easier because I'm more familiar with the process now after one home purchase and two refinances, but at least part of the credit has to go to Priceline. Wells Fargo had sent me paperwork which was full of errors, but I found none on the papers from Priceline.
Then came the time to wait. My loan officer had given me the name and phone number of my loan processor, and had also told me when to expect a call from the appraiser.
My loan had a 40-day rate lock with a float down option if interest rates were lower at the time of closing. The appraisal came in a little higher than I needed it to, which was a big relief since we didn't have a down payment and needed a high enough appraisal for the lender's loan-to-value ratio. The appraiser was also very nice, perhaps because, as he explained, we were his last stop before departing for a long-overdue vacation.
The biggest down side to Priceline
These folks are really busy, especially at a time like this when interest rates are so low. We never once got a return phone call from our loan processor when we called her. One time I waited a week, didn't hear back from her, and finally called trying to find anyone there who could answer my questions. I ended up being put through to the processor's supervisor's voice mail. He didn't return my call either.
The loan officer was much better about returning phone calls, and he explained that he was just constantly on the phone and hardly had time to do anything else. When he'd be on the phone he'd have voice mail waiting when he got off, and in the morning his voice mail box would be full. While it was still annoying to be ignored by Priceline employees, it made me feel better knowing why they were ignoring me.
A happy ending
I was a little nervous because our loan closed a few days after the expiration of the rate lock period, but our loan officer explained that the period was automatically extended. We ended up getting the float down option on our interest rate so our rate at the time of closing was 5.875% instead of 6%, a welcome change. The world's nicest notary came to our house late one afternoon to have us sign the papers, which they'd couriered to us earlier in the day, and we sat at the dining room table with cats flopped on the floor around us as we filled out the paperwork. The only surprise was how much easier it was than our last refinancing experience.
Our loan was sold to Alliance Mortgage, then to Countrywide. I mailed them the first check today and couldn't be happier with my new loan and new interest rate.
Recommended:
Yes
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Epinions.com ID:
kazu
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Member: Beth
Location: Seattle, WA
Reviews written: 20
Trusted by: 12 members
About Me:
Out standing in my field, chewing clover and waiting for rain.
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