E-Loan is E-xpensive
Written: Jan 26 '00
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I'm not sure E-Loan can give the best rates. I want to warn fellow users to be sure to shop around, even when using the "best" online mortgage broker out there.
When you log on to www.gomez.com, you find that E-Loan is the top-rated site. It is reasonable to wonder whether E-Loan paid for that rating, since this has been a problem in the past with Gomez.
Be that as it may, E-Loan does have a slick interface, a lot of general mortgage information, and quick response to a specific quote inquiry. For example, E-Loan can quote you rates and closing costs for a 5/1 ARM for $305,000 with 10% down. I like the fact that they offer a breakdown of the closing costs, too, so you can compare with other brokers.
The sad fact is that they are not competitive with some of the smaller mortgage brokers in the Atlanta area. Even Wachovia beat their estimate. The best E-Loan could do on a 5/1 ARM with 15% down was a rate of 7.325% with a total of $6,300 in closing costs, in a combination of origination fees, discount points, and the usual attorney's fees, tax, and title fees. My local Carteret Mortgage lender offered 7.25% on a float-down rate, with $3,000 in closing costs--no application fee, no origination fee, no "discount" points.
So before you click on the dotted line, consider shopping around. Just because a lender is on the internet doesn't mean you'll automatically get the best rate.
Recommended:
Yes
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About the Author
Member: Mike Benjamin
Location: Atlanta, GA
Reviews written: 29
Trusted by: 4 members
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