LowSlowT2 is right on point. I refinanced two houses in the past year and sold another one. Unfortunately, you have to endure the pain if you want to take advantage of the low rates. It doesn't help when the brokers and underwriters are clueless. I've already posted my experiences with the clowns that USAA uses in their mortgage department. I think broker incompetence is rampant on a wide scale. I had a broker tell me he had to deny a millionaire a small home loan because he was retired and had no "income." Even the people in USAA's car loan department aren't that bright. I was shopping for a small car loan a year ago and had found a better rate from a credit union than USAA. I was talking with USAA about it and the guy actually had the gall to say "it's only a three hundred dollar difference over the life of the loan, why not just go with us." Unbelievable. Yes USAA, I would like to hand you over my hard-earned money for no good reason.

 

I got an online quote from GEICO this past week that was several hundred dollars MORE expensive than what I've got with USAA now.

I wasn't able to do a direct apples to apples comparison either because my coverage limits with USAA were higher than what GEICO had. So, less insurance for higher cost with the other guy.

Just wanted to provide a data point for everyone out there. Shop around, you may be better off with someone else, or not...

 

Underwriter idiocy/incompetence is widespread, not just at USAA. You can't single out USAA for this... no way.

I had an underwriter for a VA loan through People's Bank tell me that since my garage floor had cracks the VA required a whole new floor to be poured. They also told me that the VA required a termite inspection for North Dakota. I told them they were full of it but they still wouldn't listen. I even verified all this in person with the regional VA mortgage office and gave the underwriter the direct phone # and name of the VA official that I spoke to and they still insisted that both were required. I walked away...

 

I attempted to refinance my loan with NFCU. I had a 15 year note with them and I wanted to refi to a 30 to prepare for retirement. I had no other jobs lined up and it would have lowered my payment by $1,000 per month. I figured it would be easy. Our credit score is 800+, we have no other bills and I can show cash assets three times the amount I was trying to refi.

They refused to refi since I "couldn't prove what my retirement income was going to be." I provided letters from my personnel department and from my CO stating I had 20 years of honorable service and what my projected pay would be. They wouldn't accept the letters and insisted on a retiree pay stub which I wouldn't receive for months. I asked if there were any other issues and they said no that not being able to show them my monthly income was the only hang up and it made the loan too risky. I asked why Navy FCU could not work with an impending retiree? Is the whole retirement thing new to the system? No answer but the typical have to meet the new guidelines response. I then reminded them that not refinancing the loan was even "riskier" as my payment would remain higher with the same unproven monthly income. That blew their mind.

I had moved to NFCU two loans ago since USAA mortgage department sucks so bad. NFCU lost my business too. Fortunately, I got a job, sold that house and bought a new one with a local bank in my new hometown.

 

I had a problem with a claim a few years back that they didn't want to pay. The best thing I can recommend is to do all your corresponding via their website so everything is in writing. Then, when you keep getting the run around go up the chain and get a supervisor. I threatened to cancel all my insurance with them (home, cars, boat, umbrella) and within 24 hours of me involving a supervisor my claim was fully covered.

 

Never really had any issues with usaa

 

I've been a member of USAA since 1972 and have never, not once, had a problem with either their claim service or their record-keeping, or anything else, come to think of it. Granted their premiums might be a little higher than you can find elsewhere, but that's to be expected in today's day and age. Besides, the lowest price is not always the lowest cost. As well, one needs to factor in the annual distribution that gets put into your individual account. We have close to $13,000 in that account, and although we can't withdraw it, it is available if we ever decide to leave USAA.

Another great service that USAA provides is their car buying service. I've just ordered a new car, and using USAA's service, have managed to save myself $6000. Granted, the car I'm buying is rather expensive and the lower the MSRP, the lower the savings, but that savings alone would probably last 15 more years and cover any increased cost incurred by using USAA's insurances.

The other thing I like about USAA is that they are a full service insurance company. I can shop for car, home, boat, plane, health, life, long term care insurances at one place, all using the same member number. As well, there's plenty of other financial services that they provide. All in all, I wouldn't go anywhere else for the vast majority of my insurance needs, with the one exception being to insure my classic car, for which I use one of the classic car specialty insurers.

JJ

 

Hey Jet jok. Leave USAA for six months. Go anywhere for less money. Then USAA will send you your $13,000. YOUR $13,000. Then cash the check. Then while holding your $13,000 in your hand, call USAA and reup. They do not care. They won't ask for your SSA back. That way you can go back to your beloved USAA and get to use YOUR $13,000 as you like.

 

What he said

 

Did the quote apply the Military Discount? It is significant and I don't think the online system included it when I switched, I had to call.