Pricing.

Pricing

If you've spent some time navigating around my website you're aware, by now, of my belief that in shopping for a loan, the rate is irrelevant for the most part: THE RATE IS WHAT IT IS, for that day. The difference between my rate and the very best rate out there that day MAY BE an 1/8th of a point. I don't know what it will be tomorrow, no one does. I do know that it will either go up or down. The one thing that you can be assured of is that I WILL CONSCIENTIOUSLY STRIVE TO GET YOU THE BEST DEAL POSSIBLE.

I LET BORROWERS PRICE THEIR LOANS. WHAT I MEAN BY THIS IS THAT I HAVE A SET FEE STRUCTURE AND BORROWERS CAN EITHER PAY MY FEE IN THE FORM OF AN ORIGINATION POINT OR HAVE THE LENDER PAY MY FEE IN THE FORM OF A REBATE OR SOME COMBINATION THEREOF. I CHARGE A POINT AND A HALF (1 1/2%) FOR A PURCHASE ON "A PAPER" LOANS AND A POINT (1%) FOR A REFI. I'LL GIVE YOU MY BEST POSSIBLE PRICE FOR THAT DAY (WHICH IS WHAT I BELIEVE MOST PEOPLE ARE LOOKING FOR ANYWAY) WHICH WILL BE EQUAL TO, OR LOWER THAN, THE COMPETITION SO THERE'S NO NEED TO RATE SHOP OR "NEGOTIATE." ONE CAVEAT: I CAN'T COMPETE WITH LIARS AND INCOMPETENTS BECAUSE THEY'RE OFFERING LOANS THAT DON'T EXIST.

OBVIOUSLY, IF THE DEAL IS ESPECIALLY DIFFICULT, SMALL OR COMPLICATED, SOME ADJUSTMENTS NEED TO BE MADE TO COMPENSATE ME FOR THE ADDITIONAL TIME OR EFFORT EXPENDED. IN CERTAIN SITUATIONS, BECAUSE OF ONLINE SUBMISSIONS, FAVORABLE LTVs AND THE VOLUME I DO WITH LENDERS, I AM ABLE TO GET FAVORABLE "OFF-SHEET" PRICING, WHICH IS REFLECTED IN MY PRICING.

The most frequently asked question by borrowers is “what’s my rate?” They often expect you to quote a rate off the top of your head without their affording you much in the way of pertinent information other than their name. The easy, open ended answer is “I have programs with rates that range from 1% to 12%. Which would you like?”

What borrowers often fail to realize is the complexity of coming up with a valid quote because not only do the rates change daily, and occasionally, multiple times in the same day, but that each lender may have 20-50 different loan programs. On top of this, Associated Brokers, my parent company is approved with over 100 different lenders. So, if you do the math, there are literally thousands of different programs. Each program has 10-15 different parameters that influence the pricing.

Aside from lender guidelines and Debt To Income (DTI) ratios the following factors will impact the rate and pricing:

LOAN AMOUNT $__________ (CONFORMING, NON-CONFORMING, SUPERJUMBO)

LOAN TO VALUE (LTV) _________%

MID-FICO SCORE(S):

OCCUPANCY: PRIMARY RESIDENCE, 2nd HOME, N/O/O

TYPE OF PROPERTY: SFR, PUD, CONDO ETC.

WHAT’S IMPORTANT: LOW PAYMENT, SHORTEN PAY-OFF,
MAXIMIZE CASH FLOW

DOC TYPE: FULL, STATED, NO RATIO, NINA, NO DOC

TYPE OF 1st MORTGAGE DESIRED: FIXED, ARM, INTEREST ONLY,
OPTION ARM, OR OTHER

LENGTH OF FIXED RATE: 1/1, 3/1, 5/1, 7/1, 10/1, 15, OR 30

TERM: 15 YR, 30 YR, 40 YR, ETC.

LOCK TIMES: 15 DAY, 30 DAY, 45 DAY, OR 60 DAY

PREPAYS: YES OR NO, IF YES, 1, 2, 3, OR 5?

WHOLESALE OR REBATE PRICING?

IMPOUNDS: YES OR NO

BUYDOWNS: YES OR NO

2nd: FIXED, HELOC, 30/15, 20/20, 25/25, 30/30

Having said all of the above, I RECOGNIZE THAT I'M NOT FOR EVERYBODY, nor do I want to be. At present, I CAN ONLY SERVICE 30 NEW CLIENTS PER MONTH. One of the nice things about being in business for yourself is that you get to pick with whom you do business. As I've said before, because we do GOOD business, BUSINESS IS GOOD!

I HAVE BUT ONE RULE TO BE A CLIENT--IT IS MUTUAL RESPECT--I WON'T WASTE YOUR TIME. I LOOK FOR THE SAME IN RETURN BECAUSE I CAN'T AFFORD IT--TIME (as we all know by now) IS MONEY!

REFERRALS

My clients usually appreciate that for I've done a good job, expediently and at a fair price. Consequently, they're usually more than willing to pass their beneficial experience with me on to their friends, relatives, neighbors and colleagues via REFERRALS and also, because I DO ASK FOR THEM.

As I've said before I SELL MONEY AND SERVICE. As a mnemonic device, so you'll remember who I am and what I do I made this website the color of money and for the same reason there's a $100 bill on the back of my business card.

I hope the time you've spent at my website has given you some insight into the mortgage industry and has provided you with the "straight talk" I named it for. If you like what you've seen here, TELL YOUR FRIENDS ABOUT mortgagestraightTalk.com.

As far as business goes, if anyone can do it, we can. If we can't do it, probably no one else can either. Naturally, I hope that we'll do business because I CAN PROBABLY HELP YOU AND I WANT YOU AS A CLIENT. I THINK YOU'RE GOING TO LIKE THE WAY I DO BUSINESS.

-- Rod Haase