Real Estate and Home Mortgages - Loan Shopping - Ing Direct?

Has anyone tried ING DIRECT? I like their low closing costs on new home purchase ($2500-3000). One of the features of the loan program is they don't set up an escrow account for taxes and insurance. You pay this on your own and their point is to put that money in their 2.2% savings account which is to your advantage. On HELOCs, it's zero costs in CA. Also, if your loan is 80% or less, the rate is the prime rate which could change monthly. If the amount is over 80% of the home value, then they just tack on .5%. I'm tempted to try them out but curious if anyone is using them. Check out their website: www.ingdirect.com for more info. Paperwork is done via mail and they send a notary to your home for closing. Is this really a good deal. By the way, their new purchase loan programs are 80/10/10 or 75/10/10.

$2500-3000 is not what I'd consider low closing costs, not by a long shot. They have a chart of "average fees" from other lenders that is extremely inflated. I've never seen fees like that, except maybe for a few internet loans. Not with banks or brokers. The page I'm looking at shows no costs for the "orange" mortgage? Is there something else I'm missing? They aren't dumping fees onto other places are they? Beware the terminology. Charging 0 for the regular fees but exhorbitant fees for the closing itself is a tactic used by some.

I'm skeptical about any loan that claims that Prime is the rate you get, unless maybe it's a HELOC. In this case, they're pushing ARM's, but the rates look reasonable, if there are no points or origination fee.

Most lenders will allow an escrow waiver if your LTV is below 80%, which from what you mentioned is the most they'll do. Most lenders may charge a fee though. (.25 pt or so) They probably don't charge the fee since they want you do use them for the savings account (fair trade off). That's an individual decision of whether or not it's worth it to you.

Be careful, but it might be worth checking out. Doing a loan like this by phone/fax/internet can be an experience. Know what you're getting into before you're committed.

Check out countrywide home loans. We have had two loans with them, and they are very easy to work with. You can get loans with no points or origination fees, or with some points/fees, depending on the % rate you want.

You can check out all their closing cost fees at their website


We bought our last home 2 years ago with 0 points and no origination fee, and got a 5-1/2% 15 year loan.

www.countrywide.com

Many brokers are set up with Countrywide, as well as other lenders. Also, a broker can offer you lower rates with a lender than you can get from that lender directly. Lenders have a lot of overhead which they try to recover. I've closed loans for friends that work at Countrywide, Wells Fargo, local banks etc. due to having access to lower rates than their own employer--even going through their employer, but from the broker division. Plus, with a broker you apply once, pull credit once, and they find you the best product. Anyone should offer you a no points/no origination fee loan as part of a loan comparison for you to chose from, that's not unique to any lender. The first thing to consider is how long you anticipate being in the house, then do the math to find out which route is the best for your individual situation. Just something to consider.