Ask Anything About Mortgages
 

Public service announcement... most Brokers are crooks... most loans that sound to good to be true... ARE

Re: Ask Anything About Mortgages
 

What are your credentials to start this thread?

If you are qualified to answer, how does the mortgage broker make money in a "no cost refinance"?

Re: Ask Anything About Mortgages
 

JCoool,

When you're late on payments, interest?

Re: Ask Anything About Mortgages
 

I own a mortgage company

Re: Ask Anything About Mortgages
 

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What are your credentials to start this thread?

If you are qualified to answer, how does the mortgage broker make money in a "no cost refinance"?

[/ QUOTE ]

7 years top producing loan consultant.

A bunch of worthless financial licenses (realestate license, series 7, CFP)

Mortgage brokers make money on "no-cost" loans by bumping your interest rate (on fixed mortgages) or your margin (on adjustable rate mortgages) to cover costs and pad their pockets.

NOTE: Brokers that work through wholesale departments with major lenders (B of A, Wells, WAMU)... do get some type of rebate from the lender directly... but 99% of files submitted have a pretty deep "pad" that is the cost of the total loan being passed onto the borrower.

Re: Ask Anything About Mortgages
 

What sucks most about selling mortgages?

Re: Ask Anything About Mortgages
 

[ QUOTE ]
What sucks most about selling mortgages?

[/ QUOTE ]

The innane humdrum coupled with invoking of ennui the job seems to set forth.

I was a broker for sometime.

Re: Ask Anything About Mortgages
 

[ QUOTE ]
I own a mortgage company

[/ QUOTE ]\

I'm guessing Montreal (canada?) has much greater consumer protection clauses for mortgage borrowers up there...

for some reason, it's harder to certify a new toothpaste in America than it is to get a Broker license and deal with peoples financial well being.

Re: Ask Anything About Mortgages
 

Can you explain a balloon Mortgage to me? My broker lied to us (BIG SURPRISE0 and said we weren't in one until the closing attorney brought it up. Too late for is, as we had sold our house the previous day. Wht is the best way out of one? Thanks

Re: Ask Anything About Mortgages
 

[ QUOTE ]
What sucks most about selling mortgages?

[/ QUOTE ]

The competition... i'm all about free markets and capitalism... but it's gotten to easy (at least in CA) to become a loan broker. We are talking about people with NO financial backgrounds selling million dollar loan packages.

The CA market (especially SoCal) is flooded with upstart brokers that are doing anything and everything to stay afloat. Including shaddy business practices.

I'm a very honest loan officer and I'm straight up with my customers... that leads to several lost/cancelled deals. Most of these customers come back to me a month or two later after they finally realize that they were sold on a loan or cost structure that was just plain false.

I can't tell you how many customers I've sat with that blindly sign the paperwork because they feel ignorant, and they just trusted the broker. Meanwhile, when you actually read over the paper-work, they are paying a higher rate and cost structure than what I was originally offering.

People fall for it all the time... they think the grass is always greener on the other side... and they think somehow, someway, they found the deal of the century.

It's really bad right now with everyone offering 1% start rates.