The Venture Report

Mortgages are Expensive right? Not in our world. Most Realtors ,  Mortgage Brokers and Banks are caught up in a Perceived Reality that the closing cost for a Mortgage should be about 1 to 3% of the loan. This causes problems on all transactions. 

Here is how:
Purchase Price = $250,000

Selling Realtor—Tells the seller to expect to pay $3,000 to $5,000 in closing cost for the buyer because they are going to ask for it.

Buying Realtor—Gets the buyer to get pre-qualified and tell them how much to expect t in Closing Costs. The Realtor says, we can ask for this to be paid by the seller and they will pay it if they want to sell.

The costs between a regular 1% origination loan and a true NO COST Loan is usually 3/8th to 1/2% difference in rate. This means that if you could have gotten 6% with $5,000 in total closing costs, you could get 6.5% for $0. Why would you take a higher interest rate? If you don’t take the rate, you are saying that you know the mortgage market is at the lowest it will be in the next 5 years and it will never be any lower than it is now. The reason 5 years is important is because that is your PayBack period. That is how long it is going to take you to make up closing cost you paid $5,000 with the monthly difference in payment of about $81/month.

If you take the higher rate, then if the rates drop the day after you close, you can refinance and float down with the market for p and then Go Down and then Go Up and then Go Down), you will win.

So with the example above:

Seller—loses $5,000 off the asking price because an inexperienced Mortgage Broker or Banker told the buyer that this is what I can do.

Buyer—although they think they didn’t pay for it, they really did because they could have bought the house for $5,000 less. That means they are paying interest on $5,000 extra for the time they own the house and they have to pay it back when they sell.

Buyer—could have refinanced in the next 6 months and received the 6% they were willing to pay $5,000 to get for Free 6 months later when the market does what it normally does and that is (Go Up and then Down)

We have know this for years and this is why we bring so much value to all of our customers. We keep track of your mortgages for you for life. We do what makes sense. Even if you have just paid $5,000 for financing, we will still be able to put you in our system and call you when it is possible to save you money.

Call me directly for free consultation.
Phone: 704-597-9077
Contact Larry Thompson Click Here

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