What You Should Know About Online Lenders

Peter from Deland is shopping for a refinance on his home. He is deciding between an online lender and a local bank. His question to Robert Palmer is which one is the better way to go?

A lot of online lenders will not lock in your interest rate until the appraisal comes back. They quote you up front with a great rate and then they place in the fine print that the interest rate is floating until the appraisal comes back. So, if the market gets better during that time period they give you the quoted interest rate and take up the difference. If the market gets worse, they are going to raise your interest rate and reference that fine print regarding not locking in the quoted rate until the appraisal comes back. Also, when you deal with a big bank, or a local company, a lot of times they want to charge you a lot of fees due to brick and mortar costs and the big brand to make up money.

RP Funding, however, locks in your rate up front. As soon as you give the application paperwork back, we lock the loan in for up to 60 or 90 days, however long it takes us to close your loan. We charge zero lender fees, we guarantee the lowest rate and we let you lock in the deal upfront before you go down the path to get an appraisal.