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Another borrower almost gets burned! 

We approved and closed a stated income purchase money loan for a self employed borrower a little over three years ago.  He called and inquired into refinancing to a lower rate the beginning of this year.  We quoted a discounted rate because he is a past customer. 

He checked around and decided to go with another company, he said their rate was lower... until he tried to lock in (he was told "the rates went up"), then he received their Good Faith Estimate ...

They were charging a 4% broker fee and did not consider it "points" when they quoted their rate.  The bottom line is this, the TOTAL closing costs(including prepaids for the new escrow account and odd days interest) with Consolidated Mortgage was less than just their 4% broker fee.   We also operate as a broker, (it allows us the greatest flexibility with rates and loan products) and when we quote rates and fees, our broker fee is included as points (on a zero point quote we make our money when we sell the loan,  we consider that our "broker fee" even though the money comes from the investor purchasing the loan (paid outside of closing) not from the borrower's funds at closing).  We will never do what the other company tried to get away with. 

Needless to say, he is very happy with our rates, fees, service, honesty and integrity.

We have been able to save borrowers thousands of dollars in interest over the life of the loan by offering a rate lower than the competition.

We have also saved borrowers hundreds and even thousands of dollars in loan discount and origination fees at closing by them checking with us before committing with another lender. 

In several instances the total closing costs with Consolidated Mortgage were less than other companies origination fees.  It pays you to check with us...

Some companies advertise that their loan consultants are paid by the hour and are not on commission, trying to give the impression that their rates and fees are lower.  What they don't tell you is that their consultants get a monthly bonus for volume.  Don't be misled...

A borrower called us regarding a 125%, $35,000 2nd mortgage loan.  He was comparing what an out of state lender was charging (10 points !!!) with what we could offer.  We agreed to do it for less than half of the points that the other company was charging.  That saved him $2,100 in real dollars at closing!!! Now more than ever, it really does pay the borrower to call us and compare. 

Mortgage companies that advertise on the T.V. or hire telemarketers are notorious for their high fees... 

Consolidated Mortgage will NEVER call and interrupt your dinner or evening...

The most dramatic change related to credit is an increase in permissible points that may be charged on both closed end and open end second mortgage loans in Maryland. 

Prior to the new law, lender points on second residential second mortgage loans were limited to 2%.   The new law allows combined lender points plus broker fees (if any) up to 10% of the loan amount.  We are not sure what thought processes and reasoning were used by the "public servants" that sponsored that bill...but it did pass.

If a broker is not involved, the lender could charge up to 10% of the loan (10 points), and some lenders try...  (A point is 1% of the loan amount).  Some lenders do charge 10 points...  It is now more important than ever to call us and compare, some high fee lenders advertise  to go direct to a lender (and avoid broker fees), it is not always best for the consumer...