Better.com doesn’t mean better rates.

2 Replies

I didn’t see much written on Better.com in the forums, so thought I’d add. Went through their prequal process today. It’s a soft inquiry supposedly. Long story short, it was a not-insignificant amount of time just to find out their rates are middle-of-the-pack for a cash-out refi. I found better rates from both a local credit union and Axos.

Anyone else with a more positive experience?

Hey @Michael Tyler ,

Thanks for your post!  I found the same issue.  They are not really cheaper, however I am using them because they are the only lender I found that will work with my particular property.  I am doing a cash out refi on a, out of state 4plex I own outright- all Airbnb units, with no long term tenants.  Most lenders won't touch that- at least I searched high and low for months and could not find anyone willing to lend on such a property.

My plan is to pull money out, and eat the higher than normal rates for now.  After a few months, I will refinance with a traditional lender.  I'm treating kind of like a bridge loan :-)

Originally posted by @Nikki Stoddart :

Hey @Michael Tyler ,

Thanks for your post!  I found the same issue.  They are not really cheaper, however I am using them because they are the only lender I found that will work with my particular property.  I am doing a cash out refi on a, out of state 4plex I own outright- all Airbnb units, with no long term tenants.  Most lenders won't touch that- at least I searched high and low for months and could not find anyone willing to lend on such a property.

My plan is to pull money out, and eat the higher than normal rates for now.  After a few months, I will refinance with a traditional lender.  I'm treating kind of like a bridge loan :-)

 FYI, some fairly standard training that call center loan originators are given:

Don't "pre-underwrite" the file. Assure the borrower that it'll all be OK, no matter what they say, in order to get the borrower on the hook for an appraisal fee, then get it into underwriting. Let the underwriters approve or deny it.

Good luck...

It's also possible that it would have worked anywhere, just some folks got scared when you said airbnb.