Consumers Helping Consumers

Internet Loan Quote Was Very High
W.F., Engineer, Columbus, Ohio

I received a quote from one of the Internet mortgage loan web sites. I inserted all of my information into the web page and received the quote rates for a loan where I was looking to refinance my home loan. I chose an option where the lender pays all of your closing costs. The rate quote I received seemed excessively high. I then checked with a mortgage broker over the phone who quoted me a more reasonable rate. I mentioned the Internet web site and asked why this might have happened.

He said that he wasn't sure but gave a good reason. He said that my loan balance was above the old conforming loan limits, but was below the new conforming loan limits that just recently were enacted (or however that works). He suggested that the Internet loan web site may not update their limits in their programs as quickly as they occur.

To test this, I went back to the site and ran my numbers again, but used a loan balance just below what he said were the "old" conforming loan limits. This time, the web site returned loan rates that were almost as cheap as the one the "live" mortgage broker quoted me. I still went with the mortgage broker, though, because I was worried what else might be outdated by the Internet.

Equal Home Finance Bureau Comment: The Internet is one great source for learning about home loans. It allows you to begin to be familiar with interest rates and other fees. However, the web sites need to be used with caution because of problems like W.F. mentioned above.

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