I've had mixed experiences with smaller banks myself. They can definitely be easier to deal with—less red tape, more personal attention—but sometimes their rates aren't quite as competitive as the big guys. A few years back, I refinanced through a local credit union; process was smooth, but I ended up paying slightly more in interest. Anyone else run into that trade-off between convenience and cost savings when refinancing locally?
I've noticed the same thing—smaller banks and credit unions can be a mixed bag. A couple years ago, I refinanced an investment property through a local community bank. The process was refreshingly straightforward compared to the endless hoops the big banks made me jump through previously. But when I sat down and crunched the numbers afterward, I realized I'd sacrificed about half a percentage point in interest for that convenience. Over the life of the loan, that's not exactly pocket change.
Honestly, though, sometimes that trade-off is worth it. If you're juggling multiple properties or have complicated financials (like many investors), having someone who actually picks up the phone and knows your name can be priceless. I've had big lenders lose documents multiple times or shuffle me between departments until I wanted to pull my hair out. The smaller banks at least seem to care about keeping your business.
But here's something else I've wondered about lately: with rates climbing again, are smaller lenders becoming more competitive? Maybe they're feeling pressure to match the big guys now that refinancing isn't booming like it was a few years ago. Has anyone recently compared rates between local credit unions and national lenders? Curious if that gap has narrowed at all...
I totally get what you're saying about smaller banks. As a first-time buyer, I went with a local credit union because I was pretty overwhelmed by the big banks' processes. Yeah, maybe my rate wasn't the absolute lowest, but having someone actually answer my questions without transferring me five times was a huge relief. And honestly, peace of mind counts for something when you're already stressed about buying your first home...
"peace of mind counts for something when you're already stressed about buying your first home..."
Totally agree with this. Quick heads-up though—HARP actually ended back in 2018. But there are still refinancing options out there if you're looking...might be worth chatting with your credit union again since they treated you well the first time around.
Yeah, refinancing can definitely ease the stress—I remember when I bought my first place, I was losing sleep over interest rates and paperwork. Credit unions usually have decent rates too, so worth checking out options there again...