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►Charleston Home Loans :: |
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only Upfront Mortgage Broker!
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How can
Agent Owned Mortgage save me money?
What we do at Agent Owned Mortgage
is “shop” your mortgage loan to various wholesale lenders like Chase Manhattan
Bank, Countrywide, Wells Fargo Bank, Citibank and National City Bank. In
essence,
these wholesale
lenders end-up competing for your mortgage loan business. Therefore, we
can offer you great rates! |
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How are these major money center banks able to provide Agent Owned Mortgage with
lower mortgage rates that are better? Wouldn't their regular banking customers receive
the best rates by going into the branch?
No.
Because overhead costs are less. You see the banks pay a lot of money for
employees. The mortgage loan officer, loan processor, receptionist
effect net margins. These overhead employee costs lower the bank’s net rate of return on mortgage dollars outstanding.
Therefore, Agent Owned
Mortgage rates are always lower than what the banks will charge even
their most preferred retail customers. All for the very simple reason
of not
incurring employees overhead costs. This will save you approximately .375% which
is also the equivalent of 1.5% of the loan amount. This means a big
savings back to you like $3,000.00 for every $200,000 you borrowed! |
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How is
the Upfront Mortgage Broker representation different from other conventional
mortgage brokers?
Agent Owned Mortgage, Charleston's only upfront
mortgage broker guarantees full disclosure right from the very beginning. We believe you deserve to know exactly what your yield spread premiums, rebates, and markups
equal. Don't you want to know the true cost of your mortgage loan before it is too late to change
your mortgage loan lender?
Full disclosure and transparency is required by state and federal laws.
AgentOwned Mortgage will represent you
as the “client” and not the mortgage
wholesale lender. All South Carolina resident licensed mortgage brokers
represent the wholesale lenders and not you. You will also find this true
for the majority of mortgage brokers in the United States.
The majority of mortgage brokers represent the
mortgage wholesale lenders like Chase Manhattan Bank, Wells Fargo Bank and
Citibank. Therefore, they are not required by law to inform you as the borrower
regarding all of the mark up costs, rebates, or yield spread premiums involved
in your
obtaining a mortgage loan. Basically, this means you are paying a higher interest rate on your
mortgage loan all without your consent. The mortgage broker is receiving cash incentives
at your expense. |
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Why
is it important for you to work with Agent Owned Mortgage?
It is all about you're being the
“client” and not the customer. At Agent Owned Mortgage, you are the client
and that is why you receive the yield spread
premiums, rebates, and incentives. Because we put the clients best interest ahead
of ours.Agent Owned Mortgage gives money back to
their clients! The dollar amount totals hundreds of thousands! The
return of yield spread premiums is the reason that money is being returned to rightful owners.
You! This is why we
believe in upfront mortgage disclosure. As a client, you deserve to know exactly how much money the
mortgage broker will make for processing your loan. You work hard
for your money and deserve the best rate. |
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Commitment of an Up Front
Mortgage Broker
1. The broker will be the customer's representative
or agent, and will endeavor to act in the best interests of the customer.
2. The broker will establish a price for services
upfront, in writing, based on information provided by the customer.
3. Any payments the broker receives from third
parties involved in the transaction will be credited to the customer, unless
such payments are included in the broker's fee.
4 The broker will use his best efforts to determine
the loan type, features, and lender services that best meet the customer's
needs, and to find the best wholesale price for that loan.
5. The wholesale prices from which the broker's
selection is made will be disclosed at the customer's request.
6. When directed by the customer, the broker will
lock the terms (rate, points, and other major features) of the loan, and will
provide a copy of the written confirmation of the rate as soon as it has been
received from the lender.
7. If a customer elects to float the rate/points, the
broker will provide the customer the best wholesale float price available to
that customer on the day the loan is locked.
8. The broker will maintain a web site on which its
commitment to its customers is prominently displayed, along with any other
information the broker wishes to convey.
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Wholesale rates vs. Retail Rates
Wholesale Rates-
Lowest rates possible based on wholesale lender's daily rate sheets. These
rate are passed on to our clients without typical broker mark-ups, yield spread
premiums or rebates.
Retail Rates-
Wholesale Lender's Daily Rates Sheets include mark-ups, yield spread premiums or
rebates. This is the money used to pay employee health benefits, salaries
and office space.
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Hypothetical Example using Wholesale Vs. Retail Rates
A borrower is interested in a home loan in
the amount of $247,000 to be paid in fifteen years.
Important questions asked of two mortgage brokers by the borrower:
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Agent Owned Realty
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Competing Broker |
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What interest rate can you give me? |
5.25% |
5.25% |
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What do you charge for your mortgage services? |
1% + $150 Broker Fee |
1% Origination Fee |
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What dollar amount is that? |
$2620.00 |
$2,470.00 |
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How much is the rebate that is paid by the lender to the mortgage broker for
this interest rate? |
$1,852.50
(.75% of the loan amount) |
$1852.50
(.75% of the loan amount) |
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Who receives the rebate? |
The borrower |
The mortgage broker keeps it as additional compensation. |
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How much will my out of pocket cost be for your broker / origination
services? |
$767.50
(Agent Owned Realty will credit the lender's rebate of $1,852.50 toward our
broker fee of $2,470.00 resulting in an actual out of pocket cost to you of
$767.50.) |
$2,470.00
(The origination fee.) |
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What will you actually get paid for doing my loan? |
$767.50
(Agent Owned Realty will credit the lender's rebate of $1,852.50 toward our
broker fee of $2,470.00 resulting in an actual out of pocket cost to you of
$767.50.) |
$4,322.50
(The origination fee of $2470.00 paid to the mortgage broker by the
borrower...plus the rebate of $1,852.50 paid to the mortgage broker by the
lender for the rebate.) |
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This 1% Broker Fee is not equal to 1% origination fee hypothetical example
is very compelling evidence as to why you need to work with an
Up Front Mortgage Broker. |
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Definition
of Rebates, Mark-Ups and Yield Spread Premiums- Money the
wholesale lender is willing to pay the mortgage broker for placing your mortgage
loan with them. This money is paid to the mortgage broker without your
consent. These cash incentives are directly linked to the interest rate
you are charged. The higher your mortgage loan's interest rate, the higher
the rebate amount credited to the mortgage broker. This is money you
deserve to keep. |
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Site Map |
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Mark Costello
- AgentOwned Realty |
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1400 Palm Blvd. |
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Isle of Palms, SC. 29451 |
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Cell
843.224.3233 - Fax 843.725.6532 |
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Privacy Notice:
AgentOwned Realty understands and appreciates the importance of our client's
privacy and any information you provide us will be kept in the strictest of
confidence. |
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Copyrights 2005 by Charleston Home Advisor.
All rights reserved.
No part of this website may be reproduced or transmitted in any form or by any
means without written permission from the owners. |
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