Mortgages

Why Does Quicken Loans Want Me To Refinance

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

I have been researching mortgage refinancing opportunities as a means to reduce my monthly payment. One of the key participants in the field of internet financing institutions, Quicken Loans was the focus of my investigation, therefore I looked at their site in great detail as part of my study. And I’ve found that they’re very popular for a reason.

Quicken Loans offers some of the most competitive rates around and they have loan products for just about anyone; from those looking to change their current mortgage to first-time home buyers. I consider myself to be a pretty savvy shopper, and Quicken Loans is at the top of my list of potential lending institutions for my refi.

Options for Refinancing

Selecting a mortgage program for your house should not be done without careful consideration of numerous factors. The interest rate is an essential factor. I’ve looked around and found that Quicken Loans has some of the best rates in the business. 

Since I am unable to provide you with personalized pricing information, I have constructed some hypothetical scenarios to help you visualize their offerings.

  • Quicken Loans’ 30-Year Fixed-Rate Mortgage is currently offered at a rate of 4.875%. Assuming a loan amount of $200,000 and origination fees of 1.375 points, the total interest paid will be $2,037. This loan’s monthly payment would be $1,058, and the annual percentage rate (APR) would be 5.048%. Taxes and insurance costs are not included in this total. That is a great quote in my opinion. To give you an idea of the scale of things, my current monthly payment is $800 on a fixed-rate mortgage that is worth about $100,000. I can see how this bundle could help me save a lot of money.
  • An alternative is a 15-year fixed-rate mortgage at a rate of 4.25 percent with one discount point due at closing. Purchase of this item results in a low $1,505 monthly cost. The actual APR is 4.48%, and once again, the monthly payment does not include taxes or insurance. A 15-year fixed rate package is a great approach to minimize the total amount you will pay for a home if it is within your financial means to do so.
  • As this mortgage type adjusts its interest rate periodically throughout the course of the 7-year term, you should do your homework before committing. There is the possibility of short-term gain and potential for future loss. That depends on your present financial situation and how well you can predict your future living expenses (basically, how long you plan to stay in your current home). However, I did recently have access to an ARM and was therefore able to save a considerable amount of money! This option is currently being offered at 3.75% with 1.75 points due at closing. On a loan of $200,000, the monthly principal and interest payment would be $859.03. It’s important to remember that this rate is subject to change.
  • Five-Year Adjustable Rate Mortgage. In the market today, a five-year adjustable-rate mortgage can be obtained for 3.25 percent with two points required at closing. In this case, the payment for principal and interest on a loan of $200,000 would be $847.

The monthly payments on a Quicken Loan can be lowered by using one of several methods offered by Quicken Loans. If you are underwater on your mortgage or unable to make your regular payments, these may be a lifesaver. Quicken Loans is on the pulse of the current economic climate, and its wide range of financial services makes them a good option for those in a variety of financial situations.

Purchasers of First Homes

Have you begun the search for your first home? To begin, let me say, congrats! There is no better moment to invest in real estate than now, and regardless of the economy or the housing market, doing so will be a wise move toward securing your financial future.

However, taking the plunge into homeownership isn’t something to be taken lightly. Watch out for mortgage and housing scams because it’s likely that you don’t have a lot of competence in this area. 

Thankfully, that’s not the case with Quicken Loans. You can choose the appropriate mortgage package for your situation with the help of their surveys and calculators, which walk you through the process step by step.

Measurements and Calculators

Quicken Loans’ success they’ve serviced over a million loans since 1985 can be attributed, in part, to how simple they made the entire process. I love interactive tools like calculators and surveys, and their site has plenty of them. It only takes a few minutes to answer a few questions so they can recommend the perfect product for you.

For those who already have a handle on the ins and outs of refinancing, Quicken Loans provides a plethora of calculators to help them determine just how much money they stand to save by going with them. 

You can calculate your estimated monthly payment by entering the amount you wish to borrow and the current valuation of your home. Quicken Loans “gets it” in this respect. They realize how complicated the mortgage industry may be and work hard to make things easier for you.

Bottom Line

In closing, I’d want to share that about a decade ago, I became a first-time homebuyer, and I sorely wish I’d had access to Quicken Loans. Being overwhelmed by everything, I’m sure I made some poor choices.

After going through several mortgage refinancings myself, I can attest to the quality of service provided by Quicken Loans. Whether you are upside down on your mortgage, have stopped getting a paycheck, or are just looking to refinance, they have the resources to help you.

Quicken Loans has opened my eyes to the benefits of using an online lender, and I’m not sure I would have considered one before. As of right now, they are at the very top of my priority list. Making an effort to connect with them is a safe bet in my opinion.

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