Does
anyone work for free? Of course not.
Most fees loan officers have
no control over. Federal law prohibits any kickbacks or profit sharing
arrangements on title, appraisal, escrow, etc. - so these prices are the
same even on the Do-It-Yourself Refinance program- and are hidden in a
No-Cost, No-Point loan by raising the interest rate.
Note that some loan companies
say "No Points"- but then charge a Broker Fee. It's the same.
I used to work for one of those companies. Call it what you like, but
it often came out more- they might charge a $3500 broker fee on a $170,000
loan- that's over 2 points - as in well over what
I charge.
Most importantly:
- $0 -
ZERO* out of pocket on Refinances
- $0 -
ZERO*
out of pocket on Purchases if your Realtors & Seller agree on details
- You'll recieve
an itemized Good Faith Estimate down to the penny
- You'll get NO SUPRISES and NO BAIT AND SWITCH
Except the appraisal fee directly to the appraiser. We do
not charge any upfront fees ourselves.
Should
I pay points?
Yes, if you're A. Getting a
fixed-rate mortgage and B. Staying in your property more than 5 years
and 4 months. If you're staying less than 5 years, don't get a 30-fixed;
the rate is too high and you won't be there anyway. Furthermore, if you're
staying less than 5 years, you should be more focused on the closing costs
than the rate, perhaps getting...
The
No-Cost No-Point loan
Do we magically get Uncle Sam
to waive his $59 County Filing charge? Of course not! What we do is charge
a higher rate on the loan, which makes it more valuable to banks. They
LOVE customers who have 9% mortgages and never refinance- because they're
making more money! By the way, if you have one of those, don't wait for
the bank to call and ask for you to refinance...they hope you never do.
In short, a loan at a higher rate is more valuable, therefore the bank
buys the loan from us for enough money to cover the closing costs and
us to make some money.
Anyone who quotes
rates or fees without knowing your
situation and goals is either incompetent or lying.
Let's
keep it simple - answer these 5 questions and I'll be let you know
the Benefits I can offer as well as the Cost breakdown
- for YOUR unique situation and needs. |
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