All Forum Posts by: Teesha Geyer

Commercial loans there are harsh, too.  Had a guy offer on a couple of my apts because he said he was getting 25yr am, 4.75% commercial money there.  He forgot or left out the part that each loan expires every 5 years.  You have to originate every 5 yrs, full appraisal and underwriting. It is just fully due and payable every 60 months. Crazy!

Hi Teesha, 

Sounds about right. 

Depository institutions (big banks and CUs) and internet lenders are where you want to go to save $37/mo by refinancing to drop your rate 0.125%, or where you want to go when you want a HELOC. That's what they are good at. Middle school stuff. Commercial mortgages, too.

Local lenders, direct non-bank lenders, correspondents, or mortgage brokers (whatever name you want to use), are where you want to go for purchase mortgages and cash out refinances. That's what they are good at. They can't even offer you a checking account or car loan at all, so they must be good for something, and that 'something' is purchase mortgages and cash out refinances. 

Right tool for the right job! If you try to get a HELOC from a mortgage broker the rate will be crap (if they can do it at all), if you try to get a purchase investment property loan from a credit union or big bank then it'll take 4 months just to be declined at the last minute because your CPA didn't dot an i on page 7 of your tax returns, etc etc, you get the idea.