American Interbanc -- anyone ever heard of them?

marymtJune 13, 2007

We have done the research on the refi and were trying to stay with local banks or other institutions we recognized. However, there is one online company that we are considering. All I can find through searches are that there have been articles because American Interbanc sued Bankrate.com over unfair advertising practices other lenders were using on the bankrate site. (complicated, but basically, they were going after the shady brokers). For a 30-year-fixed, they right now have 6 percent at virtually 2 points (for our loan; it's a flat fee of $8900). Our bank says "too good to be true; best we can do is 6.5 percent at 1.75 points". Has anyone had any dealings with American Interbanc? The Good Faith Estimate appears to be in order. I'm just afraid of a surprise at closing.

Here is a link that might be useful: Article on American Interbanc

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sparksals

I don't know about Interbanc, but how long do you plan to stay in the house? Two points is pretty steep if you plan to stay a short time or it's not your forever home.

What other companies have you researched? Have you shopped around at lenders other than your bank and Interbanc? If not, I think you should.

    Bookmark   June 15, 2007 at 12:48AM
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marymt

This is our forever home....but I know what you're saying; even if we live here forever, it doesn't mean we'll never want to refinance again. But that would mean rates are down below 5.5 percent, and I don't think that's terribly likely. Wish I had a crystal ball!!

I have spoken to several banks, and a few direct lenders (and a financial advisor and an economist and people around the water cooler). My current lender was going to match the Interbanc offer after reviewing the GFE (because he was sure he was going to find some junk in there). But he couldn't .... he still thinks its too good to be true and that we will get a surprise before we close. I'm taking a leap of faith here. I'll post again with my experience so others can benefit. From today's news, a lot of people are in our situation...

    Bookmark   June 15, 2007 at 7:59AM
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habiem

I recently refinanced through american interbanc mortgage. The rate was what they promised and closing costs were what they told me -- well, kind of. The first estimate from them was WAY off. I honestly don't think it was an attempt to screw me. When I pointed this out to them and was upset, they offered to let me walk away from the deal and waive their cancellation fee, as this was AFTER I had locked the rate. I honestly think it was a loan officer not paying attention. I won't mention the exact name, but if you are dealing with someone with initials MM, just make sure the total closing costs are comparable to other GFE's you get.

Overall, ours went pretty well - we paid no points and locked into 5.875 on a 30-year fixed about a month ago. It was a LOT lower than other rates I could find.

    Bookmark   June 18, 2007 at 4:45PM
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marymt

Well, I did lock the rate but I backed out before 3 days; I was getting panicky about the rates shooting up, but they calmed down at the end of the day Friday. I've decided to watch and wait for a while (we still have 3 years on the ARM).

AI was nice about it. My gut tells me they are okay. But the settlement with an out-of-state company still makes me nervous. Habiem, has everything settled down? Do you know if all the recordation work was done correctly, and the escrow accounts set up okay?

    Bookmark   June 19, 2007 at 12:26PM
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tillnexttime

Can anyone else provide details of their experience with American Interbanc? We are considering them and would appreciate any new stories or updates.

    Bookmark   September 28, 2008 at 1:45PM
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mpcarl

We've been talking with AI, along with several other mortgage suppliers, for a couple of months now. We're about to lock for our sale that's coming up in a month. All of the mortgage suppliers are very pushy, all except Interbanc that is.

We are very careful shoppers. I've even built a spreadsheet that calculates amortization at the various rates over 30 years, adds in the effects of the fees, points, point adjustment and inflation (being an MBA helps :). AI beats all other offers on these comparisons.

...and you can check their rates at any time on the internet, a complete set of current rates and fees. How cool is that!

Still, we're a little nervous about last-minute surprises from any mortgage company, so we have several offers and will choose between them when we lock. I am pretty sure that AI will get our business though. They seem pretty honest, and are not high pressure people (I don't respond well to pressure :).

I'll post back here to let you know how it goes. We plan to lock in the next 15 to 20 days.

Here is a link that might be useful: American Interbanc Today's Rates

    Bookmark   October 24, 2008 at 8:02PM
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