*OT* Important question for thread about mortgage re-finance
Got an offer to re-finance my current 5/1 loan, (convert to 5 year fixed), and I'd save $150 a month (after all CC, etc.)
Problem is: The company offering is called E-loan. (At first, I thought they were a division of E-trade, and I figured, they won't go out of biz this year...most likely!). However, E-loan is some super rinky-dink net company, not even affiliated with semi-rinky-dink E-trade...totally independent.....EELN stock went from 60 to 1 (!) in the past year. Looking at their balance sheet, it looks like they can stay in biz thru end of year...but they are small-time, for sure.
At first, I was going to write this off. But then I spoke w/a friend who worked in banking for years. He thought it wouldn't be such a bad idea, since most of these loans are immediately re-sold, someone else would be holding the paper anyway...even if these guys went out of biz. Also, no other mortgage company can come close to their (E-loan's) rate.
Any thoughts, anyone? What are the risks if this company goes belly up by end of year? TIA. |
