|
|
Home
Mortgage Articles by Broker Deal
Should You Pay Your Closing Costs?
Or Get A Low Closing Cost Loan?
by James Robert Deal
Mortgage Broker
Consider the couple who plan to live in a home long-term. They are positive they are not going to refinance the loan for at least ten years. When they go to an Internet lender such as Ditech or to their local bank, they will find that loan officers there are trained to quote them a loan with no or low closing costs. Sounds good doesn’t it? Watch out! It's a trap.... |
|
Transparent Pricing & Flat Mortgage Fees |
|
|
|
Transparent Pricing & Flat Mortgage Fees
by James Robert Deal
Mortgage Broker
The flat fee quote is another way we can save you money.
We look at your credit score, income, job history, and other factors and tell you how much we will charge. It is based on how easy or complex your loan is and how cooperative you are in terms of getting us the documentation we need.
Transparent Pricing & Flat Mortgage Fees
by James Robert Deal
Mortgage Broker
The flat fee quote is another way we can save you money.
We look at your credit score, income, job history, and other factors and tell you how much we will charge. It is based on how easy or complex your loan is and how cooperative you are in terms of getting us the documentation we need.
We let you pick the interest rate. We will increase the points you pay if you want a rock-bottom interest rate. Such a strategy would make sense if you know you are going to keep your property for five years or more and want to save big time over the long haul. Or we can reduce the points you pay to zero, which means you will have a higher interest rate. We can even raise the rate to the point where the lender pays us a Yield Spread Premium, which we then pass on to you to and which you use to pay most or all your closing costs. Such a strategy makes sense if you need to refinance and take money out of your home but know you are going to be selling and moving in a year. These loans typically have no pre-payment penalties.
You can even participate in the decision when to lock in your interest rate. We subscribe to the services of an expert bond trader who gives us advice as to interest rate trends. I get e-mails and recorded cell calls which advise me when to advise my clients to float or lock.
With Deal Mortgage the entire process is transparent. You know exactly how much money we will be making on your loan. As mortgage brokers, we are required to disclose the Yield Spread Premium that the bank pays us.
Note however, that when you get a loan from a bank, you will not know how many points the bank will make when it resells your loan. That's because they are a banks, and banks are not required to disclose their Yield Spread Premium. If you get a good faith estimate which does not disclose Yield Spread Premium or rebate, you should come to us to get a real comparison. It is the mortgage brokers who keep the banks honest. I go into Bank of America to make a deposit and check out the rates on their chart. I then go back to the office and amaze myself at how much better our rates are.
Call me at 425-774-6611 or 888-999-2022 for further information. Or e-mail me. The fax number is 425-776-8081. Click here to sign up for our e-mail messages, our printed mailings, or to request a call back.
For details about how to apply go here.
Copyright © 2008 James Robert Deal. All rights reserved.
|
|
|
|
|
|
|