Friday, March 07, 2003

A Nice Warm Cup of STFU

We are currently looking into refinancing our house, and one of the things my fiance did was to apply at Lending Tree to experience that whole "banks compete over you" thing. Well, the first company that gave us a quote required a whole assload of financial information to be submitted, and then required that we have our house appraised. Then, they proceeded to lock the rate (without asking us if we accepted their offer) and tell us that we were closing that Thursday. HELLO! They basically railroaded us into getting it completed as soon as possible - not to mention without considering any other offers. Then, we got a competing offer from another place that was pretty similar, and still not exactly what we wanted. In discussions with the second company, they suggested a 5 year Adjustable Rate Mortgage (ARM), which sounded pretty attractive. We called the first company and told them thanks but no thanks, we're going with the ARM at this other company. Below is the email that my fiance got from the first company. I am not going to comment, I'm just going to sit back in amazement.

Despite my frustrations, I want to let you know that I understand your position. I am upset at the fact that I am able to offer you the same 5 year ARM that *company* is offering you. I did not present you with the option in the beginning because I don't feel that it is your best option. I have your best interest in mind and I truly feel that the 30 year fixed rate option is the best option. I was under the influence that you were planning on staying in the house for the next 10 to 15 years and I don't see why you would want the vulnerability of an ARM when you can lock into a 30 year fixed at the lowest rates in history. In the beginning, I asked what your goals were through the refinance and understood them to be eliminating PMI, saving money monthly, and lowering your interest rate. I have done all of these things for you and have a hard time understanding your hesitations. Your loan is ready to close and I have spent a significant amount of time and effort getting it to this point. I wish you could see the loan from my perspective and wish that you were as excited to get it done as I am.

*company* may be presenting you with a 5 year ARM option, but I feel like they are undercutting me and promising you that the 5 year ARM is your best deal. Keep in mind that the interest savings is about $80. The monthly PMI will have to also be added in, which I was under the influence was something you set out to eliminate from the beginning of this process. It is true that you can refinance in 60 months when the ARM increases (which it will every 6 months to 1 year) but you will have to finance the closing costs once again which will cash in even more of your equity and will eliminate any interest savings you received from the initial lower rate and will actually cost you more money. If you choose not to refinance, your rate will eventually reach 10% which you will pay for the remainder of the loan, probably at least 20 years. Not to mention that *company* will take at least another month to get this done for you, when I have what I feel is the best loan available ready to close today, not making your first payment due until May and this payment can be made for you with the cash you will be receiving at closing.

I apologize for going on about this, but the more I type, the more frustrated I get. I worked hard for you and to now have to turn this loan down is not fair. I don't understand why you would choose to go with *company* when I have worked this hard for you. I think that you would agree that my customer service is second to none and have been in contact with you on an almost daily basis. I have given you many different options and worked plenty of numbers for you. I hope that you are getting the same level of service from *company*, because it is very important and you deserve it and you will be sorry after the loan closes if this is not the case. I hope that you weigh all the options available to you and would like to change your mind and get your loan closed, but I wish you the best luck with the wedding and with your refinance. Please let me know when you change your mind, I would be happy to get this done for you. Thank You.

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