Mortgage Investors Corporation

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Posted by on
Please allow me to address everyone's comments and share a few:

Thanks to all Veterans who have served our country well. You deserve the very best from Americans in serving you in return.

Q1: Who is MIC and what do they offer?

A1: MIC (Mortgage Investors Corporation, aka Amerigroup Mortgage Corporation) is a mortgage lender who only provides VA loan financing to Veterans with present VA loans who want to refinance. If you are buying a new home, or have a loan other than a VA loan, they can't help you. And they only offer a 3/1 ARM loan. Some Veterans may benefit from this type of loan and some will not.

(A company who recommends a one-size-fits-all concept to everyone is selling a program; they are not trying to match the best financing program available to meet their customers' needs.)

Q2: What does MIC charge to get a loan?

A2: MIC charges 3 points total (3% of the total new loan amount being refinanced), VA charges a funding fee equal to 1/2 point, and there are new title company charges for title insurance, closing fee, and other miscillaneous fees. MIC will finance all the charges, so your present mortgage balance will increase by 3.5% plus other closing costs. You may have to pay other fees depending on which state you live in plus deposit funds into a new escrow account to pay for property taxes and homeowners insurance.

Q3: What does it take to qualify for an MIC loan and can I get this type of loan anywhere?

A3: If you cannot qualify for other financing, the streamline program MIC offers does not require an appraisal, credit score, income verification, and only requires that you are current on your present VA mortgage (with no other liens against the property). However, other VA lenders offer streamline refinancing too, and they offer fixed rates too!

Q4: Are there better loan options for me?

A4: It is my recommendation that if you are considering refinancing your VA loan, see if you can qualify for other types of mortgage financing like FHA or Conventional financing. You can refinance with very little or no closing costs with some lenders.

Q5: What if I want to consolidate debts or get cash out for home improvements or for some other reason?

A5: MIC can't help you!

Q6: Is a 3/1 ARM a safe loan or should I get a fixed rate?

A6: MIC representatives will tell you it is a safe loan. However, since the interest rate is subject to an annual adjustment of 1% each year (to a maximum of 5% total), after the first 3 years, it very well could increase considerably over time. Nobody can predict what interest rates will be, but we can look at history. Copy and paste the weblink below into your browser to see what the rates have been between 1972 and the present:

You will see that the rates since 1972 were over 10% for 10 of 11 years (1979-1989), over 9% for 17 years, over 8% for 21 years, over 7% for 29 years, and over 6% for 33 of the 40 years through 2011.

This means rates have been traditionally much higher for the vast majority of the past 40 years. If you can get a 30-year fixed rate at 4.25% or a 15-year fixed rate at 3.75% (with 3 points) or at rates of 5% or 4.25% respectively (with no closing costs), why would you want to risk possible rate increases which are more likely to occur than not for a 3% 3-year rate?

Q7: What if the MIC representative is using high pressure sales tactics?

A7: If the recommended loan is really the best option for you, they should realize that if you went to discuss it with a professional adviser like a financial planner or a CPA, then your adviser would agree; therefore, do not sign anything until you get professional advice.

I am a licensed mortgage loan originator recommending to talk to other lenders, brokers, banks, or credit unions. Most of all, seek advice from appropriate and qualified professional advisers for all your financial planning concerns-NO DIY!
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User Replies:
Anonymous on 04/07/2011:
Although this looks like an ad I found it informative all the same. Thanks for the info Licensed Mortgage Loan Originator Dan.
Venice09 on 04/07/2011:
I agree, LR. Even if this is an ad, it's still helpful.

NO DIY is good advice.
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Be careful with this company
Posted by on
ST. PETERSBURG, FLORIDA -- So, we received a flier in the mail stating they offer a refinance sponsored by the veterans administration at 3%. Both me and my wife believe in the old saying "If it sounds to good to be true, it most likely is". This was the case here as well. However, we had a representative come to our home. Smooth and fast talker. One of the first things he said that caught my ear was that after he presents the numbers "we could tell him to leave and there would be no hard feelings or further time taken up". Lie number one. Once we told him we were not interested (because what he showed us was a 3/1 Arm loan lie number two stated nowhere in the flier) he wouldn't leave. He kept pushing the issue. Then, when we thought he finally got the hint that we wanted no part of what he was offering, he asked if he could use our phone and call his boss. He said his boss was simply going to ask us if we felt the info provided was adequate. Lie number three. His boss was pushier than him. He even made comments to the salesman at our home like " I can't believe they don't want to save all this money". I finally had to get rude and tell him and the salesman they were NOW starting to waste my time and piss us off. He finally left. Be careful with this company. The only real savings is the first 3 years. But then BAM. They got you. This loan promised 3% fixed, the first 3 years ONLY. Then it could go up 1% each year after that but couldn't exceed 8%. Which with the market as low as it is now there is pretty much a guarantee 8% is where you will end up at from year 7-30. Do the math folks. I ran a whole spread sheet of my current 5.75% fixed versus their offer. OUCH. Add them hitting me with about 11000 $ in upfront costs (added to my existing loan balance) and the for sure 8% rate from years 7-30 and I would be getting screwed. Plus I heard they sell your loan fairly quickly and the new company typically doesn't honor the same terms and want extra monies. I guess the first indicator should have been the little comics in his presentation of a monster he referred to as "the principal monster". Cute tactics but I'm not 10 years old.
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clutzycook on 03/21/2011:
Ooh, good thing you didn't fall for it. Although, I would have just called the cops after he refused to leave.
trmn8r on 03/21/2011:
I guess you ran a spreadsheet just to prove the point. Obviously this is a complete ripoff.

The "old saying" that you quoted is hopefully taught by most parents to their children, because it is timeless.
getoverit on 03/21/2011:
Mortgage pimps are the worst
Venice09 on 03/22/2011:
This reminds me of an Empire Carpet complaint.
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Posted by on
FLORIDA -- I recently encountered a scam that mortgage investors corp offer refinance VA members only for VA members period, which they say they do thousands of these refinances, they say they have saved thousands of homes for vets, unfortunately this is a scam, and I hope vets like me have not went through with this, lets say for instance, my mortgage is 199,000 they offer a adjustable rate mortgage 3/1 arm for 30 years, they tack on another 12,000 to your principal balance. you pay a 3.5% P/I for 38 months good deal right, no its not. yes its true you'll save 22,000 in two and half years, then they jack up you interest rate, this mortgage corp. is taking advantage of one of biggest scams ever and there saying the us gov. is the host. of it all. how am I saving money and paying down my house balance. After 2 1/2 years if I'm right back to where I started. I would warn vets of this not to do it, my evidence lies in there scam the paper work they offer the vets. 22,000 dollars subtract 12,000. dollars it leaves you 10,000 after 38 months subtract that from your P/I 112,000 it leaves you 102,000 dollars after 2 1/2 years then they raise your interest rate up, Lets say I stay where I'm at 5.5% VA 30 yr fixed. yes I''ll pay 30 thousand in interest in 2 1/2 years but my balance will be at 191,000 not 102,000. please tell me the gov doesn't have anything to with this scam.
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KCMIC on 07/02/2010:
I do not feel this company is a scam. I've seen them help 100's of thousands of vets and active duty everyday. I feel that it would be your opinion if it doesn't work for you. It helps many! FYI: They do not 'jack' your rate up, it's a matter of rates rising. We all know they can rise or go down at any time. Monday on the news they went down to 4%, by Wednesday they were back up to around 5%. Also, if you really looked at the program you would see that your rate could go up but it's not very likely. The VA does allow them to have this program because it's their program. I just wanted to better help you understand.
BEARKILLER3 on 07/10/2010:
You sound just like them, very demanding, you must work for them, let me explain, If you had a three year mortgage loan, for 10,ooo.oo dollars fixed rate for 30 years, lets say at 5% you went with there deal OK, tell me where your bal. would be at in three years, please include the closing cost of 12,000 dollars on your original bal, before you subtract, your better off ahead right where your at.
PepperElf on 07/10/2010:
If you think it's a scam then contact the VA
they may be able to help you out
BEARKILLER3 on 11/22/2010:
jimbobilly50 on 03/21/2011:
I'm with you on this one. KCMIC does most likely work for them considering the initials in his name MIC. He should try and hide that better. I thought I had a car salesman in my home. Yes a car salesman, a liar, cheat and thief.
jimbobilly50 on 03/21/2011:
And for PepperElf, I contacted both the VA and 3 local mortgage companies.
1. The VA allows ANY company that does VA loans the choice to offer this 3/1 Arm. They however won't monitor all the hidden fees these companies charge or, how they present or administer them.
2. The mortgage companies we talked with said what they are doing is, while not criminal or illegal, is immoral and goes against their industries ethics. Two of the three won't offer this program because of the inherent danger it puts people in 8 years down the road, and is what it is and nothing more. An ADJUSTIBLE RATE MORTGAGE. These loans are a good portion of the reason the home industry is where it's at now. In the toilet!!!
Al on 08/04/2011:
Part of the reason though that the industry is where it is- is due to people buying homes they never could afford in the first place and getting loans that were barely paying their interest let alone their principal.
Mr. Price on 04/08/2012:
I just had one of their agents in my dinning room last week. It is not a fraud or a scam, but a clever product engineered to generate solid profits for the company by decreasing veterans short-term costs (monthly payments) and exponentially increasing long term costs of ownership adding closing costs to principal and all the unknown factors associated with an adjustable rate dependent on market conditions.

When it comes time for these rates to adjust whoever chooses this product best be ready for a lengthy legal battle over what the actual interest cap was with whoever the loan gets sold to. More than likely there will be a significant discrepancy over what was presented to the client by the high pressure sales person, what was signed, and what is stated on MIC's internal documents
BEARKILLER3 on 11/27/2012:
I had a salesmen at my house a month ago uninvited of course, they are definitely persistent, of course they thought I was told the wrong story, I said no mic says whatever just to get you to sign a contract, all I'm saying is buyer beware, if you sign this contract and your happy good for you, but 5 to 7 yrs from now your paying double your mortgage payment, don't come crying back onto my complaint site because I told you so.
tony on 11/30/2012:
I just recently signed a mic loan but haven't closed yet. The tactics they use suck but the math looked legitimate due to the interest being paid on the unpaid balance and not the original loan amount. The math worked out to save me over 100,000 in 30 yrs vs the fixed rate that pays interest on the original loan amount. Tell me if I'm missing something here. Yes 12,000 dollars in fees is high but if the loan amount is reduced annually and the interest is paid on that amount, it does save money if if the interest cap is met in 9 years
bearkiller 3 on 05/19/2013:
yes, if you had 12 thousand cash or would be willing to pay an extra house payment a yr you would cut you mortgage to 15 yrs versus 30, and then the market falls out again in 15 yrs refinance with no money in and no money out, these mortgage companies are making bank and they know it too. Its like legalized loan sharks run by the gov. yeah its bs that you have a 200,000 mortgage and they collect almost 1000 in interest a month wow I wish could lend money out like that but guys like us they would tax the ****** **** out us and put us in the poor house, see I got myself started, poor man , middle man how much more are the people going to put up with getting stabbed in back all the time, don't understand how everybody else in world can run and own you life when I don't even own it myself.
JoeVet on 09/25/2013:
Right back where you started because you paid the minimum due and even then not right back where you started because of all the money you did not pay on the lower payments. Keep paying you normal payment or better yet add a few hundred more on the payments for the first few years and you end up way ahead.
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