Making Mortgage Refinancing Easier

My wife and I have been in our new home for a year. It’s been a long year of fixes, stress, and new experiences. I’m not going to say it was all bad because our new area is much nicer than our old one. We have more land, extremely nice neighbors, and just an all around clean area. We are also closer to our parents which is great when you have a toddler. When we bought our first house, we had an interest rate around 6%. It was good at the time since it was right before the fallout of the recession. This house, we were able to borrow more, get a lower rate, and pay almost the same as our previous house. That’s what low interest and a nice down payment will get you!

The Thought of Refinancing

A few months ago, I was checking our rates again and noticed that they were down.  They were down a good amount. It got my mind wandering a bit and I thought it could be a good idea to refinance our mortgage to score a lower rate. This thought process went on for about a week, but I never ended up doing it. Why?

I hate the mortgage process with a passion. I truly hate it. It’s entirely too complicated, takes a long time, and it costs a lot of money. Refinancing your mortgage is like getting a mortgage all over again. You have admin fees, processing fees, documentation fees, and other legal fees. Those stupid closing costs are up there. So, instead of jumping in, I had to calculate my break-even point. I had to know when the savings were going to pass the upfront costs and I would actually start saving money.

That point came to be around 10 years. To me, it wasn’t worth it at all. The little savings coupled with the overall headache of the process gave me enough ammunition to say no. I wasn’t going to go through it all again, especially since I did it just a year prior. Thank goodness for math winning this battle.

Well, math won the battle until I heard of a new start-up trying to change the online mortgage process. This new company is trying to automate the process and shorten it significantly. This has me intrigued again, especially since the rates could go back up.

*I have been compensated for my thoughts and opinion on Lenda and it’s practices. This compensation is for my time, but does not affect my opinion.

How Lenda Could Change the Refinancing Process

Lenda was started by Jason van den Brand, who noticed that people didn’t like the mortgage process and all the red tape they had to go through. I can certainly agree with him there.

“It’s much easier to think of reasons not to refinance than it is to think of reasons to refinance,” says van den Brand. “But the amazing stories of individuals who choose to go through it can be very powerful to hear.”

I have to agree here too. While the math for me was a main deciding factor, the others looming were just how painful the process is. The banks make it so cumbersome that it hurts. It doesn’t need to be that way. Yes, we had a sub-prime mortgage crisis, but that’s because banks were being greedy.

It should be a pretty standard procedure to refinance a loan. If you qualify, you qualify. You don’t need to provide a  DNA sample from your first born. That’s just no necessary. Though they really don’t require a DNA sample (that I know of), the process is not simple or quick. That’s why Lenda was started.

According to their site, they save clients an average of $8,000 and 45 days from traditional refinances. That’s a big chunk of change my friends and worthy of a look. Their site is super easy to use and their quote form is clean and slick. There are no frills and stuff to mess you up. The best part is you can do the entire refinance process online. You can upload supporting documents, verify your credit score, and everything else right online. That’s what I’m talking about.

Potential Lenda savings

I will say that when I tried to put in my mortgage information in their nice little quote tool, I got an error. The reason is they don’t lend in my state yet. Bummer.

Lenda no funding error

No, I don’t give up that easy, because I like to see start-ups that have good concepts succeed. I like Lenda.com’s chances, I really do. I’m sure I can ask 100 homeowners who have refinanced in the last year how they felt about the process. More often than not, you would probably hear the process was cumbersome and long. I would even through out something like 80%. This does come from my days as a mortgage debt collector, but the process isn’t as smooth as it should be.

While I couldn’t try out the service, they did provide me with a quick quote from a customer who tried to use Wells Fargo after receiving a promotion that their refinance process would be quick and easy. Here is Kevin Wofsy of San Francisco.

“Wells Fargo sent me information on refinancing and said that it would be as easy as 1-2-3,” says Wofsy. “That couldn’t have been further from the truth!” Wofsy went on to say that he was turned away from refinancing his mortgage after 8 weeks of back and forth and a ton of documentation because he didn’t meet “eligibility requirements they should have known about during the first conversation.”

“The bank could have told me upfront that I wouldn’t be able to refinance using the program they advertised, but they didn’t,” Wofsy said. “When I used Lenda they were very up front about everything and reassured me that I could refinance to the loan I wanted. I finally feel that I got my ‘forever loan’ from Lenda.”

All in all, I think I might even give Lenda a try when they are available in my state. I don’t know when that may be or which states they are currently available in (I can’t find a list on their site), but the thought of saving money and making the process simple really appeals to me. If it appeals to you and you are in the marke for a mortgage refinance, make sure to check out their site here.

Just remember, the quotes are free, but the savings are forever!

I’ve Been Cable Free for 5 Years and Still Watch TV

While in debt, I cut cable and haven’t looked back. It’s easier than you think especially with new services out on the market. One of my favorites is Sling TV, which allows you to watch live TV on the internet. It’s awesome. Check out my Sling TV review.

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3 Comments

  1. Nice to know that your new house is closer to you parents’. I am too. When I was looking for a house, one requirement is that it should be near from my mother’s house. Gray, Lenda seems to be very helpful. And, I’d like to give it a try. But, I have to know if it’s available in my state. So excited to know if it can make processing easier.

  2. Glad to see that someone is jumping into the mortgage refinancing market to make things easier. In the past year the student loan refinancing market seems to be exploding with newer and easier options than “traditional” banks. When I first graduated, basically the only option was Wells Fargo. Now there are probably 10+ solutions with very competitive interest rates. Hopefully Lenda can start the process for mortgages. I know my parents refinanced a few years ago and they spoke about what a pain it was.