lender offering lower mortgage rate if we open account.

[Anonymous]

The catch is that they won't tell us which bank until we sign. Is this legit? The interest is lower by a quarter point.

[Anonymous]

Wait is the a mortgage broker telling you this? I don't get the incentive for him/her to not tell you this?

Is this like Priceline but for mortgages??

[Anonymous]

I don't either which is why I am wondering if it is legit.

[Anonymous]

That does sound bizarre. We got an ultra low rate with a large bank, and one of the conditions was that we open an account at the bank with a specified sum of $$ in it. We could take the $$ out after the loan closed. However, we knew which bank we were dealing with. I don't think I would agree to do this if I didn't know the bank. However, if the bank is FDIC insured, I guess it wouldn't necessarily matter (but how would you know that)?

[Anonymous]

Anonymous wrote:That does sound bizarre. We got an ultra low rate with a large bank, and one of the conditions was that we open an account at the bank with a specified sum of $$ in it. We could take the $$ out after the loan closed. However, we knew which bank we were dealing with. I don't think I would agree to do this if I didn't know the bank. However, if the bank is FDIC insured, I guess it wouldn't necessarily matter (but how would you know that)?

same here. we got a lower rate by opening an account but we knew which bank. that is totally shady. bait and switch...who knows.

[Anonymous]

I would do it (as long as they disclose the terms-- how long the money has to be there etc.).

[Anonymous]

Which banks were these? Big national ones?

[Anonymous]

All banks offer this. My guess is your broker says he doesn't know which bank because you haven't done your application yet so he doesn't know which bank will approve you.