Loan Depot Mortgage Review(s) and Rates

Loan Depot was one of the original pioneers of the ‘direct lenders’ phenom that exploded when the internet began allowing consumers to apply for loans online with a faster approval process and lower mortgage rates. Within the last 25 years Loan Depot has also built and launched two similar start-ups that later merged with Lending Tree and E-Trade.

Loan Depot aims to separate itself from the other various direct mortgage lenders by providing a vast array of online resources for mortgage education which consumers can use before applying. Many of these tools, however, are similar to what other online mortgage lenders provide such as calculators, loan comparisons and graphic illustrations. Their most original online tool being their “videoDepot.” They’ve compiled an entire library of videos dedicated to educating consumers on loan programs and the loan process. So if you’re in the market for your first mortgage, this can be very helpful.

They offer a wide range of mortgage products. Among these are: fixed rate mortgages, adjustable rate mortgages, FHA loans, interest-only loans, jumbo loans and home equity loans. Their most popular product is their 30 year fixed rate mortgage. As of September 2011, their 30 year fixed rate mortgage provides and APR of 4.00%.

Mortgage Rates Provided by Loan Depot:

(Rates accurate as of September 2011.)

- 30 year fixed rate mortgage featuring an interest rate of 3.75% and an APR of 4.0%.

- 15 year fixed rate mortgage featuring an interest rate of 3.75% and an APR of 3.937%.

- 5 year adjustable rate mortgage featuring an interest rate of 3.0% and an APR of 3.139%.

Adjustable Rate Mortgages: If you anticipate a significant increase in your income or property value in the next several years, plan on staying in your home short-term, or would like to significantly lower your payment, an ARM might be right for you. Adjustable Rate Mortgages (ARMs) have interest rates that change at a pre-determined frequency.

FHA Loans: Insured by the Federal Housing Administration (FHA), these loans are government-assisted alternatives to conventional financing, and were originally offered for first-time home buyers with imperfect credit. Now, FHA loans are open to a wider audience, and are even popular options for homeowners looking to refinance.

Interest Only Loans: If you need to lower your mortgage payment as much as possible or if you have a financial plan that requires that you pay less in interest over the next few years than an interest-only loan might be a good fit for you.

Loan Depot has received somewhat low ratings from users with an average rating of between 1 and 3 stars out of 5. The reviews and complaints users have left on various consumer review websites as well as the BBB haven’t been particularly flattering. However, one must take into account that when everything goes smoothly with a mortgage application and home loan process there is a less likely chance of that individual writing a review than one who had a negative experience. Studies have shown the individual with the negative experience is more likely to voice his/her opinion than one who had a positive experience.

ETrade IRA Bonus – Up to $500 Cash!

E-Trade’s marketing team has been relentless over the last year or so by continuously coming up with new E-Trade babies to amuse us during commercials. However, now they’ve put together some pretty enticing online bonus offers to supplement the notoriety their receiving on TV.

Roth IRA and IRA Rollover Bonuses available with E-Trade:

Today if you choose to rollover your IRA into an E-Trade account, you can earn up to $500 in cash depending on how much money you transfer.

Get the $500 Cash Bonus Bonus Here!

Terms and Conditions:

- Credits for deposits of new funds or securities from accounts outside of E*TRADE will be made as follows: deposits over $250,000 receive $500; deposits between $100,000 and $249,999 receive $250; deposits between $50,000 and $99,999 receive $100; deposits between $25,000 and $49,999 receive $50.

- This offer is valid only for new or existing IRAs (limited to Rollover IRAs, Traditional IRAs, Roth IRAs), but excludes E*TRADE Securities and Bank accounts.

- Accounts must be enrolled by December 31, 2011, the offer expiration date.

Also, if you’re looking to start a new IRA or Roth IRA account, E-Trade has some bonus options available for you as well. First of all, the same cash bonus structure applies. If you are opening the account with new funds, then see the terms and conditions above to find out how much cash you will be entitled too. Second, new account holders will get 60 days worth of free trades. Depending on how active you are with your account, this could quickly rack up to some serious savings considering E-Trade’s stock trades cost $9.99 per trade at retail price.

Trade Free for 60 Days – Bonus Available Here!

E-Trade Mortgage Review(s) and Rates

Like many online banks in 2008, E-Trade got hit pretty hard by the industry collapse. You may even recall that earlier this year E-Trade sold its online savings accounts to Discover Bank to narrow it’s focus back to their basics – investing. However, according to an E-Trade spokesman, they are getting back into the mortgage game (kind of). TheStreet.com reported in March of 2009, that E*Trades re-emergence in the mortgage business is simply an outsource to PHH. They then cited the following:

“PHH Corp. of Mount Laurel, N.J. will take care of most aspects of the loan, including the processing, underwriting and servicing, while E*Trade will market the loans and help collect the necessary borrower information, E*Trade spokeswoman Pam Erickson said. ”

It also appears that E-Trade’s new mortgage center doesn’t really accommodate new home buyers as their products primarily consist of refinancing existing home loans.

Current Mortgage Rates provided by E-Trade:

(Rates as of 8/31/2010)

- 30 year fixed rate mortgage with APR of 4.419%.

- 15 year fixed rate mortgage with APR of 4.020%.

- 7 year ARM (adjustable rate mortgage) with APR of 3.396%

- 5 year ARM (adjustable rate mortgage) with APR of 3.268%.

- 7 year interest only mortgage with APR of 3.415%.

- 5 year interest only mortgage with APR of 3.270%.

5/1 ARM P&I 30yr Conf- Monthly Payment for the first 359 months will be $856.76 with a corresponding simple interest rate of 3.125%.Monthly Payment for the remaining 1 months will be $851.38 with a corresponding simple interest rate of 3.125%

10/1 ARM P&I 30yr Conf- The first 120 months will be at a payment of $926.24 with a corresponding simple interest rate of 3.75%, the next 239 months will be at a payment of $876.22 with a corresponding simple interest rate of 3.125% and the remaining 1 months will be at a payment of $874.11 with a corresponding simple interest rate of 3.125%

5/1 ARM IO(10) 30yr Conf- The first 120 months will be at a payment of $520.83 with a corresponding simple interest rate of 3.125%, the next 239 months will be at a payment of $1,121.76 with a corresponding simple interest rate of 3.125% and the remaining 1 months will be at a payment of $1,119.01 with a corresponding simple interest rate of 3.125%

10/1 ARM IO(10) 30yr Conf- The first 120 months will be at a payment of $645.83 with a corresponding simple interest rate of 3.875%, the next 239 months will be at a payment of $1,121.76 with a corresponding simple interest rate of 3.125% and the remaining 1 months will be at a payment of $1,119.01 with a corresponding simple interest rate of 3.125%

7/1 ARM P&I 30yr Conf- The first 84 months will be at a payment of $879.22 with a corresponding simple interest rate of 3.33%, the next 275 months will be at a payment of $861.19 with a corresponding simple interest rate of 3.125% and the remaining 1 months will be at a payment of $860.70 with a corresponding simple interest rate of 3.125%

7/1 ARM IO(10) 30yr Conf- The first 84 months will be at a payment of $576.67 with a corresponding simple interest rate of 3.46%, the next 36 months will be at a payment of $520.83 with a corresponding simple interest rate of 3.125%, the next 239 months will be at a payment of $1,121.76 with a corresponding simple interest rate of 3.125%, the remaining 1 months will be at a payment of $1,119.01 with a corresponding simple interest rate of 3.125%

3/1 ARM P&I 30yr Conf- The first 36 months will be at a payment of $933.06 with a corresponding simple interest rate of 3.81%, the next 323 months will be at a payment of $862.76 with a corresponding simple interest rate of 3.125% and the remaining 1 months will be at a payment of $859.07 with a corresponding simple interest rate of 3.125%

3/1 ARM IO(10) 30yr Conf- The first 36 months will be at a payment of $666.67 with a corresponding simple interest rate of 4%, the next 84 months will be at a payment of $520.83 with a corresponding simple interest rate of 3.125%, the next 239 months will be at a payment of $1,121.76 with a corresponding simple interest rate of 3.125%, the remaining 1 months will be at a payment of $1,119.01 with a corresponding simple interest rate of 3.125%

Visit Etrade’s Banking Center for more information and current rates.

Short-term CD rates trending upward?

We just received some positive news from Discover Bank earlier today. They just announced that their 18 month certificate of deposit product will now hold a higher interest rate of 2.25%, up from 2.10% a week earlier. Although this is only a small gain (0.15%) hopefully it is a sign of things to come!

If you’ve been in the market for savings products (particularly FDIC insured ones) lately, then you undoubtedly know that rates have been trending downward since the beginning of 2009. E-Trade, for example, has seen their online savings rate plummet since the beginning of 2009 from 3.01% APY to a mere 0.95% APY. This same pattern currently holds true for many online savings products.

Now for some positive news…

Besides the recent uptick in Discover Bank’s 18 month CD, we wanted to make note of a couple other national institutions with savings rates on the rise (hopefully not just temporarily).

• Umbrella Bank recently saw the interest rate associated with their 1 year CD raise to it’s current level of 2.01% APY, up from 1.98% APY last week. To put this in perspective, the national average for 12 month CD’s is roughly 1.65% APY.
• ShoreBank Direct saw the interest rate on it’s savings account raise from 2.05% APY to 2.15% APY
• EBank saw a pretty substantial jump in their 12 month CD rate (up to 2.20% APY from 2.00% APY last week)

The largest interest rate raises from last week (national banks only) came from UFB Direct and Bank USA whom saw their rates increase by nearly 30 percent!

UFB DIrect’s 12 month CD rate rose from 1.70% APY to 2.00% APY and Bank USA’s 6 month CD rate rose from 1.75% APY to 2.00% APY.

While the environment still looks bleak for deposit investors, atleast their are some positive trends beginning to take place!

Opening a Roth IRA account? Check out E-Trade’s current offer.

A few months back we covered the exceptional deal coming from E-Trade and thought we’d give it another shout out for those of you whom are considering opening a new IRA (Individual Retirement Account).

Currently the deal is this, if you open your new IRA or Roth IRA with E-Trade they will grant you 100 free trades. Considering the fact that E-Trade and other brokerage accounts generally charge between $8-$20 per trade, makes this one very noteworthy offer. Essentially E-Trade is giving away (throughout the life of your Roth IRA) $800  for conducting business with them. Not too shabby…

Here are E-Trade’s Roth IRA account details:

• No minimums and no account fees when you sign up for online statements and confirms
• Contribute up to $5,000 or 100% of compensation, whichever is less. If you are over 50, you can contribute an additional $1,000 of compensation
• Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason
• Withdraw earnings tax-and penalty-free at age 59½ provided account has been open at least five years
• Withdraw earnings after five years for home purchase, college, or major medical expenses penalty-free
• No age limit on when you have to withdraw money

Learn more about this offer.

Miners Bank’s 2 year CD promotion yielding 4.06% APY

We just got tipped off on a fantastic 2 year certificate of deposit promotion which is going on through a small community bank called Miners Bank, out of Minersville, Pennsylvania. Currently they are offering local customers a promotional 2 year CD with an amazing APY of 4.06%.

Thanks to frequent BankVibe reader/contributor Farmer Frank who mailed me the promotional flier, actual copy of the certificate of deposit, and a few other pieces of crucial evidence.

I realize this two-year certificate of deposit will only be relevant to a small percentage of you due to Miners Bank’s geographical restrictions when it comes to new customers, however, if you read the article “Where to find the best 9 month CD rates” I mentioned taking competing rate offers from various banks and credit unions and simply trying to get your local bank or credit union to match it. A few readers have had success doing this in the past, but claim that it is a more effective tactic when dealing with A) jumbo CD’s or B) long-time customer of many years.

Miners Bank Two Year CD Account Features:

(as seen on the hard copy of the certificate of deposit)

Interest Rate: 4.00% or 4.06% APY

Term: 24 months

Compounding: Interest will be credited quarterly and compounded quarterly.

Automatically Renewable: This account will automatically renew at maturity. Each renewal term will be the same as the original term. The interest rate will be the rate they offer on new certificates on the maturity date which have the same features as the renewed certificate. Grace period of ten days will be permitted after maturity where you will be able to withdraw the funds without penalty. You may prevent automatic renewal with prior written notice.

Penalty for Early Withdrawal: The penalty they may impose will equal six months interest on the amount withdrawn subject to penalty. Some exceptions may apply.

Interest Computation: Interest will be calculated using the daily balance method.

Farmer Frank, the BankVibe reader/contributor who mailed this to me, mentioned that this promotion began roughly the week of 6/08/2009 and that the tellers at Miners Bank seemed to be a bit aloof when asked when this promotion was going to end.  Which means this may be somewhat of a “hush hush” offer.

Hopefully this abnormally high savings rate offered through Miners Bank is a sign of things to come. While the large national banks (Ally Bank, E-Trade and Discover Bank) have savings rates that are still trending downward, I have seen several local banks/credit unions with savings rates on the rise. Perhaps these local institutions will set the tone towards a positive upswing in CD rates nationally …fingers crossed.

E-Trade’s Online Savings Account Rate (down to 1.20%)

The downward spiral continued today for online savings account rates, this time coming from E-Trade. If you have been patiently waiting to get into one of these online savings accounts then you must feel like this rate slashing will never end. To be honest though, after a few decent weeks on wall street and one particular big earnings report from Wells Fargo I thought we were headed towards more lucrative savings rates. Apparently not.

I was just informed today that E-Trade’s once extremely popular online savings account just dropped it’s rate again (second time in 2 months) to a new low of 1.20% APY.

In the email I received from E-Trade they mentioned that their rates were at one point yielding 8 X the national average for savings accounts. They go on to mention that even after this most recent drop they are still sitting at 5 X the national average for savings account rates.

A positive note to potential FDIC investment purchasers

So is there anything positive we can say today about the kind of rates in which FDIC insured investments are yielding? Well, kind of. First, as a preface, if you can recall last spring through early fall we were witnessing rates from savings products that were close to unheard of. 5% 6 month CD’s, 4.5% online savings accounts and 4% money market accounts were all too common. However, most economists suggest that savings rates are mostly derived from the rate of inflation. And during those months inflation was at an extremely high rate when compared to where it is today (in fact some economists fear deflation is a real short-term threat).

So in defense of E-Trade, I’d like to point out the fact that if inflation sits at 3% and you lock in a savings rate of 4% APY, you are actually accumulating less than you would if inflation sat at zero and you invested in a savings rate of 1.20% APY.

Hopefully that makes some of you slightly more comfortable with a <2.0% interest rate, but I don’t blame you if it does not.

E-Trade’s IRA bonus – $800 worth of Free Trades!

A few weeks ago BankVibe noted a fantastic IRA bonus from E-Trade. Currently they are offering new customers an IRA (individual retirement account) with 100 free trades! E-trade typically charges $7.99 per trade, thus making this offer worth up to $800!

If you have been looking into opening an IRA account, than this is probably your most lucrative offer if you don’t receive matching programs through your place of employment. With the US markets seemingly in the midst of a slight rebound, these 100 free trades may come in handy!

Requirements for E-trade IRA bonus:

• You must maintain a minimum balance of $25,000 (since this is an IRA account, you may wish to rollover your current IRA into the E-Trade IRA account if you cannot meet the minimum balance)
• Offer available with NEW E-Trade IRA accounts only
• Offer available for Roth IRA, traditional IRA, and IRA rollover
• Account must be opened by December 31, 2009

Another savings rate drop from E-Trade

E-Trade dropped it’s savings rate from 1.95% apy down to 1.70% apy, making this their fourth rate drop in 2009. The new savings rate has become effective today (March 13, 2009).

Online savings accounts in general have been out of favor for conservative investors lately, giving way to other savings platforms such as peer to peer lending and high yield checking.

E-trade isn’t the only online savings institution dropping their rates; HSBC, WTDirect, ING Direct and GMAC Bank have all decreased their rates by 15 – 30% since the beginning of 2009.

Some Good News from E-Trade

If you are looking into setting up an IRA or Roth IRA in the near future, E-trade may be your best bet. Currently, they are giving away $800 in free trades to anyone who opens an IRA account with them by December 31, 2009.

Online Savings Account rate changes – March 2009

We are 3 days into March now and have yet another downward trend of online savings account rates. In most cases one or two online savings institutions will drop their rates and within days (or even hours) the rest seem to follow suit. If you can recall, during most of 2006-2008 (until the bank collapse) these same savings accounts were trending upward, following each others pace.

Current Online Savings Rates

E-TRADE Bank 1.95% APY – Down from 3.01% two months ago.

ING Direct 1.65% APY – Down from the mid 2.0′s as of two months ago.

HSBC Direct 2.25% APY – While HSBC Direct has lowered it’s rate some, it’s changes remain less sporadic and seems to be a favorite amongst banking consumers.

WTDirect 2.01% APY – WTDirect typically keeps their online savings rates within the top 5%, however, they require a minimum balance of $10,000 in order to receive their rates.

Possible alternative to online savings accounts

After posting an alternative to Bank CD’s last week, much excitement/commotion was generated over the possibility of earning 6.50% APY + through Peer to Peer lending platforms. Lending Club allows you to lend your money to prime borrowers and earn anywhere from 6.69% to 19.37% APY (depending on the credit score YOU require from a borrower). If you read the article from last week you will see that everyone who commented generally had positive things to say. Keep in mind, if you are after FDIC insured investments, then Peer to Peer lending is probably not for you.