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lender said the rates on zillow are just teaser rates & are not accurate?

Is that true?  Today I saw the rates in the 5.4 to 5.2 range for wisconsin.  When I asked my lender he said that those aren't accurate.  He said with VA loans they are typically higher and at best I would only be able to get locked at 5.5.  Which would be fine but by the time I spoke to him he said it was now 5.75.  How can I check to see if this is true?
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June 18 2009 - US
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Answers (9)

It's not necessarily that they are teaser rates but the APR doesn't tell you the dollar amount cost of the loan. If they advertise it that rate is probably there but it also may cost a lot more as far as dollar amount then you expect after seeing a low APR associated with the low rate.
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June 23 2009
Request VA rate quotes, for your loan scenario, on Zillow.
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June 21 2009
Profile picture for SoCal Engr
You are going to be consistently frustrated if you shop/chase rates. As many have said, the current market volatility means that rates you get in the morning may well change by the afternoon. Once you "find a rate and then shop it", you will likely find that the rate is gone when you go back to lock...and that assumes that you can fill out the required paperwork so that the lender has a reasonable expectation of what you qualify for before rates change "yet again".

You will be better served by shopping the person, not the rates. Talk to several and compare notes about what they say - and about how upfront and helpful they are when you're "just shopping".

Once you find a person you have confidence in, then work with that person to determine what rate you need to make things work. They will know your personal situation and goals, and can work to secure you the rate you need.
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June 20 2009
"VA rates are typically a tad higher because certain "non-allowable" costs have to be absorbed by the lender."

This is not the case with all lenders, but may be with those that rely on lender fees as income... find a direct VA lender and you will be okay.

And, the rates you see on Zillow can have discount points in them, which lower the rate,  but increase the costs......so, look for those rates and points that meet your needs.

There are a few top lenders on Zillow that may be able to help you or fill out a Zillow request.
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June 19 2009
VA rates are typically a tad higher because certain "non-allowable" costs have to be absorbed by the lender.  Still, I think you can confidently shop for a VA home loan on Zillow Mortgage Marketplace.  ZMM isn't "just a website"; it's a real-time mortgage marketplace

Submit a request, get some quotes, show them to your local lender and make him compete.
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June 19 2009
It depends who the lender is.
Your best bet would be to put in a loan request on Zillow.
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June 19 2009
bf,

Get a rate quote from your bank, any and all Lenders to compete:

1) On the same day with same rate (compare costs (line 800 items))
2) On the same day with same points (compare teh rate)

Make sure you trim out as many confusing variables as you can.  Your statements did not mention points or fees either.  The good news:  Your bank is not robbing you.. The bad news:  They are quarantined from all other lenders and their margins and simply usually have 1 VA source and they are "told" what to mark it up.  Private origination firms can make up their own margins higher or lower ( you are the judge).  Finally, find a VA LO in your state that offeres free solid advice on these help threads and call him/her.  They will help and are straight shooters.  Good luck.
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June 18 2009
When dealing with website, such as zillow.com.  You have to be prepared for people to send you low and unrealistic quotes. 

Is the rate way lower than all of the other quotes?  If so, it's probably not accurate. 

Another cause may be the volatility of the market. For example we may be at 5% in the morning and at 5.5% by the afternoon.  Your lender's statement regarding the rate increase is most likely true.  We had about .25% increase in rates today.
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June 18 2009
The market is extremely volitile and he is not lieing about the rate increasing.  However, if you post a loan request the quotes you will get will include some low ball quotes but the majority of quotes are real rates.
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June 18 2009
 
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