This week, LenderFi is offering probably one of the better deals on a 30-year fixed mortgage this week (www.LenderFi.com). With the average mortgage rate among lenders floating between 3.675 percent and 3.75 percent, LenderFi's offering at 3.3 to 3.4 percent APR is highly competitive. This includes a 30-day lock option to protect the rate position during the loan application review.
LenderFi operates as a direct lender that has been financing homes since 2006. Loan applications are handled and processed directly online, reducing the company's operating costs for maintaining brick-and-mortar offices and allowing them to pass savings on in the form of lower interest rates. Because LenderFi operates as a direct lender, it can own and process a home mortgage from initial original to final funding. Mortgage brokers, in comparison, are unable to do the same if they act as a proxy for a lending bank. For customers, dealing with the same direct lender makes the borrowing process a lot smoother, especially when going through the validation process and regular contacts with loan officers.LenderFi operates in 41 states and the District of Columbia, so their loan programs and offerings are available to more than Texas residents. However, the above offer is a quote specific to that region as of the first week of April 2013. This loan package assumes a credit score of at least 720 and no prior borrowing issues from previous loans. It also assumes a good income-to-liability ratio in the applicant's financial information submitted.
Given LenderFi's offering, the spring real estate market borrowing options are going to be competitive. Borrowers can definitely find some gems, like this deal, but they will have to look hard since many lenders are at least 3 points higher and would prefer to be providing home loans above 4 percent if possible.