Hello everyone,
I have two nearly identical loan quotes from a regional bank and a local bank. None of the other lenders on and off this site could come close. The decision has become difficult because the quotes are so similar. They essentially matched other after going back and forth a bit and here is what I am left with:
Terms for both:
7/1 ARM 100% LTV on a $395,000 physician loan @ 3.2%. No origination fee and all other fees identical except as noted below.
Regional Bank:
Pros:
Cons:
Local Bank:
Pros:
Cons:
Typing all this out is making me lean towards the local bank and pay $380 premium on closing fees to drop the escrow and have the peace of mind that comes with of working with a local bank.
And yes, we can afford the home even if one of us stops working. I prefer the 7/1 ARM due to $20k less in interest over 7 years (vs 30 year fixed) as we plan on building a home at that point. Let's keep the discussion on the loans themselves.
Any other things I should look out for or research? We are under contract as of yesterday and I need to decide quickly.
I also want to thank everyone on this forum and the team behind WCI! I found WCI just 1 month before putting an offer on a home and already it has saved me an incredible amount of time, money and stress!
I have two nearly identical loan quotes from a regional bank and a local bank. None of the other lenders on and off this site could come close. The decision has become difficult because the quotes are so similar. They essentially matched other after going back and forth a bit and here is what I am left with:
Terms for both:
7/1 ARM 100% LTV on a $395,000 physician loan @ 3.2%. No origination fee and all other fees identical except as noted below.
Regional Bank:
Pros:
- $750 processing fee minus $435 "lenders credit" = $315 in total fees
- Have given me great service with my current condo loan
Cons:
- This loan requires escrow account for taxes and insurance, which come out ~$5500 yearly. I'd rather manage that money on my own and pay the bills using a rewards credit card if it suits me based on fees.
- A regional bank but underwriting was slow and cumbersome with my previous FHA loan.
Local Bank:
Pros:
- No escrow account required after initial prepayment.
- They handle our practice's accounts and have bent over backwards to give me great service throughout the process thus far.
- Local bank. Loan specialist's office is literally across the street from my office.
Cons:
- -$695 Commitment fee
Typing all this out is making me lean towards the local bank and pay $380 premium on closing fees to drop the escrow and have the peace of mind that comes with of working with a local bank.
And yes, we can afford the home even if one of us stops working. I prefer the 7/1 ARM due to $20k less in interest over 7 years (vs 30 year fixed) as we plan on building a home at that point. Let's keep the discussion on the loans themselves.
Any other things I should look out for or research? We are under contract as of yesterday and I need to decide quickly.
I also want to thank everyone on this forum and the team behind WCI! I found WCI just 1 month before putting an offer on a home and already it has saved me an incredible amount of time, money and stress!
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