I am affiliated with Envoy Mortgage. As such I have access to competitive rates on many different types of mortgages.
Can I compete with Ditech and Bank of America? Yes. I will outline the reasons why, but first I should explain a little bit of mortgage terminology:
Interest rates can be bought down to a lower rate by paying points. Pricing is the points that you pay to buy an interest rate down.
Interest rates can be "sold up" in return for a rebate. Rebate is what lenders gives the broker when he brings in a loan with a higher interest rate. It's also called Yield Spread Premium, YSP. With banks there is a thing called a Service Release Premium, SRP, which is very similar.
Now back to my main topic, how we can compete with the big banks.:
1) We can save you money by giving you a flat fee quote and through our transparent pricing policy
. We tell you the relationship between the interest rate and the amount of rebate we are getting. We point out to you that if you want to pay more closing cost that you can get a lower interest rate. Or that if you plan to keep the loan for a short time, it might make sense to raise the interest rate, produce a big rebate, and use the rebate to give you a low or no closing cost loan. With most lenders, pricing is not transparent. Most lenders do not tell you how much YSP, Yield Spread Premium or SRP, Service Release Premium, they are making, and so you really do not know how much the lender is making on the loan and whether you are getting a good deal.2) We might save you money by putting you into the right kind of mortgage, when another lender might put you into the wrong kind of mortgage. Here is an example: Consider the person who plans to sell and move in one year but needs to take cash out of his house temporarily. He goes to the bank and the bank gives him a 30-year fixed loan. A 1-year or 3-year ARM with a much lower rate would have been a better choice, or a 30-year fixed loan with a high interest rate and no closing costs.
3) We might save you money by helping you decide whether to pay your closing costs or to go for a no or low closing cost loan. A no closing cost loan sounds like a good thing. But bear in mind that to lower the closing costs, the lender jacks up the interest rate--sometimes an entire point. And you pay that higher rate for the life of the loan.
4) Finally, we can save you money is by delivering you "A Good Deal More," and by that I mean better service. Read the About Us page of this web site. Although I do not practice law anymore and do not represent you as your lawyer, the fact is that I have been a real estate lawyer for 31 years and I was an escrow officer for 20 years. It is easy for me to call on that experience to identify problems and suggest solutions. I do the Quality Control around here.
It is always prudent to get a second quote from another money source. Fax me your good faith estimate and your credit report, and I'll tell you whether you are getting a fair deal.
Call me at 425-774-6611 or 888-999-2022 for further information. Or e-mail me. The fax number is 425-776-8081.
For details about how to apply go here.
Copyright
© 2009 James Robert Deal. All rights reserved.