Sweeter Pitches From Lenders

[boise real estate]

Thanks to the cooling housing market, banks are throwing sizzle into incentives these days. The market is so competive that some lenders are paying just to get the chance at new business. Everyone iss trying to find something unique to offer that will entice customers. Having low rates just isn't doing it anymore. Bank of America and LendingTree.com, for example, are giving loan applicants up to $500 if they can't beat another company's offer.

[sellinggalveston]

Well they have an advantage over brokers... so $500 is not too big of a deal. They make the money off of the loan itself. Hard to compete with that.

[TJ2007]

Advantage :confused: ?

I think you'll find lending tree simply sends it's leads to mortgage brokers, and bank of america's retail division isn't known for giving better rates than anyone else.

The only advantage I see is name recogonition, but this by no means that their clients will get the best deal on their mortgage.

Lending Tree is probably one of the worst companies that promote themselves in this business! There are countless, thousands of families who's 'American Dream' has been crushed by the way these people do business and have had their credit abused, lost deposits and many others suckerd into bait & switch offers!!!!

But, hey they can afford the advertising - so they must be ok, right? NO!

What happened to 'not believing everything you see on TV'?

[La Jolla Real Estate]

After the smoke clears on the subprime mess, we should see more transparency in the lending industry. Hopefully that reaches companies like Lending Tree.

[sellinggalveston]

yes yall are right...

I was just dealing with WAMU on a refi and they pay all 3rd party fees and there are no fees from them at all. I thought it was too good to be true but after I bought my last house on a first and second loan (the second at 8.99) they dropped the rate to 7% with no fees...

[TJ2007]

That sounds great.

It just gets me when people start singing the praises of their high street bank when they are unaware most mortgage brokers can probably get them a better deal even with their own bank!

I believe the last numbers were that over 60% of loans are done through mortgage brokers now - there is a reason for that.

[ST12]

Very good! It is good for all investors out there.

[mortgagesum]

It's only the start.