A longtime client (did her first loan in 1992) called me to see if she could get a HELOC converted to a fixed rate (I actually got 3 such calls this week cause of the fed raising the rate) or should she refi.

I said it’s cheaper if her current HELOC lender would just convert it. I told her to call and check. She called back and said no they don’t convert an existing loan to a fixed rate. They offered her a new 30-year fixed loan at 5.25% with $1800 in fees.

I told her that’s way too high and that current rates were 4.5% – or the same 5.25% would be a flat $500 fee. But you pay over time for that higher rate. This is a lady with 800 scores, 90% equity and lots of cash reserves. She’s the last person who deserves to be swindled. But that’s what you get when you go to these online lenders.

Online vendors are a volume shop and don’t have to face you or answer to questions of integrity (the whole legal versus ethical story). They have no problem treating you like a number, and over charging. Thankfully, she avoided paying far more than she should have. I was so happy to be able to show her great savings.