Thanks PLM,
I can take it… I’m only being ‘beat up’ by a few and it’s just the semantics of what were discussing.
They don’t know me and assume that I’m some scumbag who doesn’t know what I’m talking about nor do they know how detailed my explanations are to anybody who wants to listen rather than argue.(or think they know it all)
I had a radio show in the San Diego market for over 3.5 years in a declining market, telling people to wait to buy AND counseling LOTS of people for FREE through foreclosures & short sales that I didn’t make a penny on.
I guarantee that when I say NO COST, it’s no cost.
ALL 3rd party fees get paid by the lender.
I’ll gladly defend what I do.
I’ve never jerked anybody around or misled them about what their options were.
I’ve never told anyone that I have the lowest rates possible. There are probably a million websites for mortgage pricing. If you want to shop and get thrown around, have fun.
I’ve had dealings with several hundred people from this website, most are not posters.If there were any complaints, I’ve missed them. I only get beat up by those who don’t know me.
Some people get angry or confused because a no cost loan doesn’t mean no out of pocket.
If you do not refinance, you still have a payment due every month, in arrears for interest (+ principal)
That is due whether you refinance or not.
A no cost loan does not mean no out of pocket.
If your insurance is due, its not my fault.
You need to pay it whether you refi or not.
You still need to pay the things that need to be paid, but ALL costs incurred with refinancing are covered by a credit from the lender.
I have NEVER said that a lower rate was not available with a cost.
The example given in the link above is misleading and outdated, rates haven’t been 6 to 6.50 in over 10 years.
A lot has changed in loan pricing since then.
I priced a $400,000 loan this morning for a borrower who is currently at 4.125%
3.75% NO COST PLUS $1700 credit back payment $1852
3.625% COST of $800 Payment = $1824
3.50% COST of $4300 Payment = $1796
The cost spread between 3.50% and 3.75% is $6000.
It saves $56 a month ($672 a year) in payment.
If it’s worth it to you to spend $6000 today and save
$56 a month you can.
If you sell or refinance in the next 6 years you threw away some money.
Anybody can do the math (if thye know how).
I don’t force anyone to get a no cost loan. What puzzles me is those who do nothing
when they can save at least .25% with a no cost loan and don’t think it’s worth it.
I have spoken to writers of major magazine articles who used incorrect data and I offered to clarify it for them and they refused because they didn’t want
to admit they were wrong. The FACTS don’t lie.
There is hundreds of millions of dollars being wasted in interest because the average person doesn’t understand the true/best benefits of refinancing to a lower rate.
I’m happy to analyze anyone’s situation for free.
I don’t care if someone gets a no cost loan or wants to pay $6000 so they can save $56 a month. That’s a personal decision. BUT don’t tell me that there’s no such thing as a no cost loan.
The key with ANY loan is what you are paying in interest. The borrower decides the term by adjusting their payments. Nobody forces a borrower to start over at 30 years.
You have a choice to decide if you want to pay to lower your rate OR lower your rate at no cost (which to me is a no-brainer if you can qualify)
The REAL tragedy is that many people do nothing because they read drivel and get bad advice from knuckleheads.
