Opinions on online conventional mortgages?

[Ronny Gonzalez]

I see a lot of online companies promising extremely attractive rates for conventional loans. Some have even said they do 3.75% with no points, with 740 credit or above. Now, I have talked to lenders in person and everyone tells me that this is fake, its all a lie. I've gotten about the same rate with most lenders in person, between 4.25 and 4.75. Anyone have any experience with these online lenders, any opinions? Can this be true? Its very enticing but it sucks getting your hopes up for something that is a lie and on top of that losing so much time on a contract. 

By the way, this is for a 20% down, conventional loan, for my primary residence, not for investment.

[Chris Mason]

It's all about the assumptions. When you meet someone in person, they are assuming your actual reality and quoting you that. People that live and lend in their communities can't really lie about things without consequences, but if you rely on advertising you can.

When you see an online advertisement, they are advertising with assumptions that very few borrowers actually meet, often still with points upfront to boot.