Non-conforming Lenders?

I’ve gotten calls from a non-confoming lender in San Jose, CA1 offering me a mortgage rate that is quite a bit lower (4.5-4.75% was his guess2) than our current rate (5.375%).

The lender claims that they can offer this kind of rate because they are the bank as well and they don’t have te overhead of brokers, etc. This makes a certain amount of sense I suppose. However, I’m quite skeptical – :scare: If it sounds too good to be true… :/scare:

Of course, I’d love to leave CitiMortgage and I’d love to have a lower interest rate.

Anyone have any experience with this sort of thing? If I could really get a 4.5% rate, it would certainly be worth paying a lawyer to make sure the contract is on the up and up.

  1. I don’t have the URL on me – their site is not impressive. [back]
  2. Our credit is good, the outstanding mortgage amount is about half of the value of the house. [back]