Posts Tagged ‘mortgage broker’

Mortgage brokers may not get you the best deal

Written by Timothy Blake on July 30, 2007 under Archives, Suggestions

Mortgage brokers have no obligation to get their customers the best deal. Actually, mortgage brokers have an incentive to push customers toward a mortgage with an unnecessarily high rate. That’s because the bank’s payment to the mortgage broker, called a yield spread premium, compensates the broker for the spread between the lowest rate at which the lender will make the loan and the rate the borrower ends up with. In other words, the higher the rate, the more money the broker makes.

Check escrowed taxes, insurance as lenders struggle

Written by Timothy Blake on July 28, 2007 under Archives, Escrow, Suggestions

What is your recourse if the mortgage company fails to pay your taxes? What if they do not pay your property insurance? If you read about your mortgage broker going to prison or see your mortgage company on Fox News with Shepard Smith you might want to check your statements. The lenders referenced below are stong and healthy and still made mistakes. Cases in point:

Lenders Get Leads From Credit Bureaus

Written by Timothy Blake on July 28, 2007 under Archives, Lenders

When a lender or broker checks someone’s credit report, it signals that person is in the market for a mortgage or to refinance. The credit bureaus turn around and sell that contact information to others in the mortgage business looking for leads. Since many mortgage brokers are unemployed and just don’t know it yet they call unsuspecting home owners. Undaunted by the ‘Do Not Call’ registry, and sometimes willing to stab your favorite mortgage broker in the back, use caution when companies call. Some, like former lender Emmco, don’t even know if they can sell the paper or get funding. (see more)

Adjustable mortgages adjust the stock market

Written by Timothy Blake on July 28, 2007 under Adjustables (ARMs), Archives

An adjustable-rate mortgage taken out in 2005 that adjusted earlier this year means $400 more each month in payments. That’s based on the average prie of the average home, around $250,000. Now don’t break out the calculators just yet, as I’m giving you rough information from statistics, as I remember my stats classes and those wonderful discussions on mean, medium, and norm.

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