It seems that online banks are the natural choice regardless if you are saving money or looking to borrow some. For example, the interest rate for ING Direct's mortgage products starts at 5.25%, a far cry than those offered by conventional brick and mortar banks.
Online banks such as ING Direct are the new generation of banks that offer full fledge banking from the internet. This means that with the absence of physical bank outlets and high overheads, they are in an advantageous position to offer you a savings account or a mortgage at significantly more attractive rates. If you are looking to secure a mortgage, internet banks are your ideal choice because they do not need to employ sales consultants to talk to you, hence they make up for it with more discounts to get your business.
Often, when you shop for a mortgage, some offers that seem fantastic at first lose their appeal once you dig deeper into the details. Interest rates aside, banks can charge you hefty fees that can wipe out any savings you get in the first place. Most online banks will do without these fees as an incentive for you to sign up for their package. When they do not have salesperson to do the selling, they are forced to rely on their numbers to do the talking. This can only be a plus point for you.
ING Direct is one of the leading names in online mortgages and it is easy to see why. If you are not aware of the potentially high closing fees associated with most home loans, here's what you need to know. Closing fee can consist of administration fee, application fee, funding fee, processing fee, tax service, underwriting fee as well as points (usually 1% of mortgage amount). Although they may not seem much, collectively they will set you back $1500 on average excluding points. ING Direct take this amount out of the equation so you can enjoy their attractive rates with no strings attached.
Another good thing about getting your mortgages from online banks is the time saved to go around and shop. With just a few clicks of your mouse, you can compare rates and features side by side and make your decision based on solid numbers. That is why ING Direct allows for a 60 days lock in rates from the moment you express interest for the loan. This is certainly a great way for you to shop around with other online banks while they continue to offer you the same rates even when there's an increase within that time frame. For a refinance package, the lock in period will be 30 days.
If you are seriously considering a home loan from ING, do sign up for its award winning savings account also. With this savings account, you can effortlessly transfer funds to your mortgage account, while making your cash in hand work harder to earn you interest. It also do not hurt that ING Direct is running a promotion that reward each new account with a $25 deposit. If you are planning to get a mortgage from them soon, an existing ING Direct savings account may be a good indicator of your financial standing for aspeedier loan approval.
Originally posted 2008-10-28 21:22:21.