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HLS
ParticipantChris, Chris, Chris, No cost DOES mean that you are paying more, each and every month for the life of that loan.
There is NO other possibility.Getting a GFE is fine, but until you are locked in AND approved, talking about the rate is like talking about the weather. It changes.
Chris, if you are getting loans to keep longer than 5 years, in most cases that no cost loan is a HUGE mistake.
It ABSOLUTELY, positively DOES mean that you are paying a higher rate and higher monthly payment for the life of the loan.
It’s comments like yours from people who THINK that they know what they are talking about but obviously haven’t got a clue, that just make me laugh.A $5000 rebate to the broker might mean $150 a month in higher payments, which is $1800 a year net cost to you.
FOR THE LIFE OF THAT LOAN.
The ONLY way that there is a commission is when the borrower is charged a higher rate than they actually qualify for.There is NO commission at the PAR rate, not a penny.
If you don’t understand this, then you’ve been lied to.The par rate for a 30 YR fixed was 5.50% last week. It was 5.875% yesterday. Your friend with the no cost loans was probably well over 6% last week.
It’s obvious that she’s got you fooled, and here you are recommending her like you are an expert, but you don’t even know what you are talking about.
Welcome to America!
PS: I am in the biz, and don’t lie to people about what the best rates are or fool them into believing that a no cost loan isn’t costing them anything.
Many/most people in the biz will lie to you, and it does amaze me that they still get referred to.
Your friend may or may not be on the level, but from what you appear to know, I’m not so sure that you got the best rates that you could have.Ignorance is bliss!
ParticipantConforming 30 YR fixed rates were 5.50 at par last week for a day or so, then 5.625, then 5.75..
Today they were 5.875%.It was a huge move in a week.
Although the 10 YR isn’t a direct relation to 30 YR mortgage rates, it’s an indication.
Qualifying for those rates today is a different story.
ParticipantConforming 30 YR fixed rates were 5.50 at par last week for a day or so, then 5.625, then 5.75..
Today they were 5.875%.It was a huge move in a week.
Although the 10 YR isn’t a direct relation to 30 YR mortgage rates, it’s an indication.
Qualifying for those rates today is a different story.
ParticipantConforming 30 YR fixed rates were 5.50 at par last week for a day or so, then 5.625, then 5.75..
Today they were 5.875%.It was a huge move in a week.
Although the 10 YR isn’t a direct relation to 30 YR mortgage rates, it’s an indication.
Qualifying for those rates today is a different story.
ParticipantConforming 30 YR fixed rates were 5.50 at par last week for a day or so, then 5.625, then 5.75..
Today they were 5.875%.It was a huge move in a week.
Although the 10 YR isn’t a direct relation to 30 YR mortgage rates, it’s an indication.
Qualifying for those rates today is a different story.
ParticipantConforming 30 YR fixed rates were 5.50 at par last week for a day or so, then 5.625, then 5.75..
Today they were 5.875%.It was a huge move in a week.
Although the 10 YR isn’t a direct relation to 30 YR mortgage rates, it’s an indication.
Qualifying for those rates today is a different story.
Participant^Your analogy is flawed.
Wholesale rates are available to brokers that are not available to you walking into the retail desk at a branch.
The question really is how much will a broker charge you to get that wholesale rate.You think that you know what you are talking about, but don’t.
You may or may not get a better deal from the salesperson at the bank who might be on commission.
A neg am loan from a bank was not necessarily a cheaper or better loan than from a broker. Either way, it was a crappy loan, and it wasn’t cheaper to you if you went to the bank.
Try finding an honest mortgage broker shop that gives you the par rate for a fair fee. You might just get a better loan and find out that going to a bank can be a waste of money.
You probably would suggest defending yourself in court rather than hiring an attorney, and you probably fix your own car instead of paying a mechanic, etc.
That’s fine if you know what you are doing. When it comes to loans, most people don’t really know what they are doing, including many of those that think they do, and don’t get the best loan that they could have, from a broker OR bank.Ignorance is bliss.
Participant^Your analogy is flawed.
Wholesale rates are available to brokers that are not available to you walking into the retail desk at a branch.
The question really is how much will a broker charge you to get that wholesale rate.You think that you know what you are talking about, but don’t.
You may or may not get a better deal from the salesperson at the bank who might be on commission.
A neg am loan from a bank was not necessarily a cheaper or better loan than from a broker. Either way, it was a crappy loan, and it wasn’t cheaper to you if you went to the bank.
Try finding an honest mortgage broker shop that gives you the par rate for a fair fee. You might just get a better loan and find out that going to a bank can be a waste of money.
You probably would suggest defending yourself in court rather than hiring an attorney, and you probably fix your own car instead of paying a mechanic, etc.
That’s fine if you know what you are doing. When it comes to loans, most people don’t really know what they are doing, including many of those that think they do, and don’t get the best loan that they could have, from a broker OR bank.Ignorance is bliss.
Participant^Your analogy is flawed.
Wholesale rates are available to brokers that are not available to you walking into the retail desk at a branch.
The question really is how much will a broker charge you to get that wholesale rate.You think that you know what you are talking about, but don’t.
You may or may not get a better deal from the salesperson at the bank who might be on commission.
A neg am loan from a bank was not necessarily a cheaper or better loan than from a broker. Either way, it was a crappy loan, and it wasn’t cheaper to you if you went to the bank.
Try finding an honest mortgage broker shop that gives you the par rate for a fair fee. You might just get a better loan and find out that going to a bank can be a waste of money.
You probably would suggest defending yourself in court rather than hiring an attorney, and you probably fix your own car instead of paying a mechanic, etc.
That’s fine if you know what you are doing. When it comes to loans, most people don’t really know what they are doing, including many of those that think they do, and don’t get the best loan that they could have, from a broker OR bank.Ignorance is bliss.
Participant^Your analogy is flawed.
Wholesale rates are available to brokers that are not available to you walking into the retail desk at a branch.
The question really is how much will a broker charge you to get that wholesale rate.You think that you know what you are talking about, but don’t.
You may or may not get a better deal from the salesperson at the bank who might be on commission.
A neg am loan from a bank was not necessarily a cheaper or better loan than from a broker. Either way, it was a crappy loan, and it wasn’t cheaper to you if you went to the bank.
Try finding an honest mortgage broker shop that gives you the par rate for a fair fee. You might just get a better loan and find out that going to a bank can be a waste of money.
You probably would suggest defending yourself in court rather than hiring an attorney, and you probably fix your own car instead of paying a mechanic, etc.
That’s fine if you know what you are doing. When it comes to loans, most people don’t really know what they are doing, including many of those that think they do, and don’t get the best loan that they could have, from a broker OR bank.Ignorance is bliss.
Participant^Your analogy is flawed.
Wholesale rates are available to brokers that are not available to you walking into the retail desk at a branch.
The question really is how much will a broker charge you to get that wholesale rate.You think that you know what you are talking about, but don’t.
You may or may not get a better deal from the salesperson at the bank who might be on commission.
A neg am loan from a bank was not necessarily a cheaper or better loan than from a broker. Either way, it was a crappy loan, and it wasn’t cheaper to you if you went to the bank.
Try finding an honest mortgage broker shop that gives you the par rate for a fair fee. You might just get a better loan and find out that going to a bank can be a waste of money.
You probably would suggest defending yourself in court rather than hiring an attorney, and you probably fix your own car instead of paying a mechanic, etc.
That’s fine if you know what you are doing. When it comes to loans, most people don’t really know what they are doing, including many of those that think they do, and don’t get the best loan that they could have, from a broker OR bank.Ignorance is bliss.
ParticipantYour assertions are partially correct.
However, mortgage brokers don’t get “paid” anything UNLESS they charge the borrower a fee for their service
OR
overcharge the borrower in rate and get a commission back from the lender.
It’s a reward for screwing the borrower into a higher rate than they actually qualify for. The lender gets a higher return for the life of the loan and shares the bounty with the mortgage salesperson. Welcome to America.The don’t get a penny if they offer the borrower the PAR rate. It’s all highly regulated beyond what most people know.
Paying a fair fee to get the PAR rate in the best loan that they qualify for is what most people should do, assuming that they plan on keeping the loan for at least 5 years.Assuming that ” a big bank” will give you the best rate is simply ignorant.
Most people have no idea what they actually qualify for.
The service that one should be paying for, is to have someone get them a PAR rate, and have their loan choices and options explained to them in words that they can understand.
Banks have retail prices and wholesale prices. When you deal direct, you are dealing with a “retail” salesperson who has limited products to offer, and are at their mercy in both knowledge & programs.
It MUST be disclosed on your escrow statement if a commission was earned by a mortgage broker.
Banks and direct lenders do NOT have to disclose that you were overcharged, it’s internal and the salesperson may not even know it. There actually is a purpose for an honest person to get you into a loan, the problem is finding one.
Your 95% is probably pretty accurate.Anybody who plans on keeping their loan for 5+ years is usually making a poor decision to get a “no cost” loan.
It will cost much more in the long run.Most people have been screwed on their loans in either rate, fee or term; and it was often by a family member, friend or neighbor.
Shopping for a rate is silly. Shopping for a person to trust isn’t.
By your logic, if you don’t shop at Albertson’s, Vons or Ralphs, does that mean that you shouldn’t be buying groceries ?
ParticipantYour assertions are partially correct.
However, mortgage brokers don’t get “paid” anything UNLESS they charge the borrower a fee for their service
OR
overcharge the borrower in rate and get a commission back from the lender.
It’s a reward for screwing the borrower into a higher rate than they actually qualify for. The lender gets a higher return for the life of the loan and shares the bounty with the mortgage salesperson. Welcome to America.The don’t get a penny if they offer the borrower the PAR rate. It’s all highly regulated beyond what most people know.
Paying a fair fee to get the PAR rate in the best loan that they qualify for is what most people should do, assuming that they plan on keeping the loan for at least 5 years.Assuming that ” a big bank” will give you the best rate is simply ignorant.
Most people have no idea what they actually qualify for.
The service that one should be paying for, is to have someone get them a PAR rate, and have their loan choices and options explained to them in words that they can understand.
Banks have retail prices and wholesale prices. When you deal direct, you are dealing with a “retail” salesperson who has limited products to offer, and are at their mercy in both knowledge & programs.
It MUST be disclosed on your escrow statement if a commission was earned by a mortgage broker.
Banks and direct lenders do NOT have to disclose that you were overcharged, it’s internal and the salesperson may not even know it. There actually is a purpose for an honest person to get you into a loan, the problem is finding one.
Your 95% is probably pretty accurate.Anybody who plans on keeping their loan for 5+ years is usually making a poor decision to get a “no cost” loan.
It will cost much more in the long run.Most people have been screwed on their loans in either rate, fee or term; and it was often by a family member, friend or neighbor.
Shopping for a rate is silly. Shopping for a person to trust isn’t.
By your logic, if you don’t shop at Albertson’s, Vons or Ralphs, does that mean that you shouldn’t be buying groceries ?
ParticipantYour assertions are partially correct.
However, mortgage brokers don’t get “paid” anything UNLESS they charge the borrower a fee for their service
OR
overcharge the borrower in rate and get a commission back from the lender.
It’s a reward for screwing the borrower into a higher rate than they actually qualify for. The lender gets a higher return for the life of the loan and shares the bounty with the mortgage salesperson. Welcome to America.The don’t get a penny if they offer the borrower the PAR rate. It’s all highly regulated beyond what most people know.
Paying a fair fee to get the PAR rate in the best loan that they qualify for is what most people should do, assuming that they plan on keeping the loan for at least 5 years.Assuming that ” a big bank” will give you the best rate is simply ignorant.
Most people have no idea what they actually qualify for.
The service that one should be paying for, is to have someone get them a PAR rate, and have their loan choices and options explained to them in words that they can understand.
Banks have retail prices and wholesale prices. When you deal direct, you are dealing with a “retail” salesperson who has limited products to offer, and are at their mercy in both knowledge & programs.
It MUST be disclosed on your escrow statement if a commission was earned by a mortgage broker.
Banks and direct lenders do NOT have to disclose that you were overcharged, it’s internal and the salesperson may not even know it. There actually is a purpose for an honest person to get you into a loan, the problem is finding one.
Your 95% is probably pretty accurate.Anybody who plans on keeping their loan for 5+ years is usually making a poor decision to get a “no cost” loan.
It will cost much more in the long run.Most people have been screwed on their loans in either rate, fee or term; and it was often by a family member, friend or neighbor.
Shopping for a rate is silly. Shopping for a person to trust isn’t.
By your logic, if you don’t shop at Albertson’s, Vons or Ralphs, does that mean that you shouldn’t be buying groceries ?
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