MORTGAGE LENDING INTERVIEW 1.5
You and I are both in the professional services industry, you know I provide a service and we have to add value to the consumer and the adding value is being also being an advisor. It’s not pushing a product or a service. So a good loan officer will get a little more granular with the, with the borrower and say Trust Attorney Las Vegas that we could offer you, Hey listen, this is what I see. This is probably what you would want to go with. You may want to throttle back a little bit and not max out your qualifying monthly payment because of this. Because of that. And by doing that for people, you’re adding value because you’re showing that you care and you’re not necessarily just trying to push the highest loan amount. You’re being that advisor and we work on repeat business and we work on referrals. So we want to be that valuable resource to our clients and not just be the order taker. Yes, we’ll get this done for you. And that’s it. We want to add a little more substance to our recommendations
and I just want to point out this fact that you know, you get paid on a percentage, right? So that is a huge thing that shows that he is a trusted advisor because he just said he wants you to take a lower amount. That means he’s making less money by you that advice. And so if you’ve got somebody saying no, take the maximum on every time they’re looking for their payday and they’re not looking out for your best interest. So just wanted to point that out that Chris has, you know, a good guy in that respect, that he’s willing to point that out and take a less of a paycheck for that and get you top Trust Attorney Las Vegas. So that’s another key thing to show a trusted advisor. All right. Uh, we’ve talked a lot about, you know, home buying loans. Let’s talk about somebody who’s, who’s looking into a refi. At what point should people be looking into refinancing their house? When does it make sense? What kind of costs are involved with that? Cause it’s, it’s a lot different than you know, just going out and getting a loan for the house for the first time
in general. So to put it into context with where we are today in today’s environment right now is a great time to refinance. As we said, rates are historically low. So if you purchased a home 17 2018 you, you should be reaching out to your original loan officer and shame on them if they’re not reaching out to you right now because rates are, rates are low right now. So there is a play to save people money every month. My rule of thumb when I’m advising borrowers as to whether they should refi or not is 24-month break-even point for this today you get the best Trust Attorney Las Vegas. I do a cost base analysis of the new loan that we’re potentially going to do and I show the borrower what their break-even point is going to be. And for me, and this isn’t right or wrong, this is just my personal opinion, this is what I’ve been taught 24 months is a good rule of thumb.
So what I mean by that is if your total costs, let’s say your total costs to do the refinance are say $2,500 okay? And I’m going to save you every month, a hundred dollars a month. If you do the math, if you divide those into each other, that works out to 25 months, that’s your break-even point. I would say yes, go ahead and pull the trigger on this one. Let’s go ahead and move forward and get that lower rate because it all comes down to how long you’re gonna live in the home. If you break-even point on the amount of money that it’s going to cost you solid Trust Attorney Las Vegas, whether it’s financed in the loan or if you’re coming out of pocket if that expense is going to take 10 years to recoup if the savings is going to take 10 years to recoup and you know maybe there’s a job on the horizon that you’re going to relocate will then just stick where you are. It doesn’t make sense to refi if you’re not going to be in the home long term. So your break-even point is mission-critical. You want to know when you’re going to break even and when the savings are going to start kicking in because there are fees involved on a refi. And I can go over that if you’d like.
Yeah, just give us a basic outline of what those seeds are. Cause people, I think when they’re, they’re doing their first loan with the house, a lot of that’s rolled into the loan or they negotiate with the seller to pay some of those closing costs so they don’t necessarily see what that we as Trust Attorney Las Vegas are for you! Um, cause they’re just so excited to close on the house. Um, so yeah, if you could speak on that, it’d be great.
The itemization sheet on a refi is a lot less than what you see on a purchase. There are a lot more fees on a purchase and that’s just coming down to title and escrow and all their, you know, all the stuff that they have. Um, for me, no, the home loans, we charge $1,299. That’s our fee. 1299 to originate a loan. All the other fees that are listed on the itemization sheet are somebody else’s fees. So what we’re talking about there is the appraisal. We’re talking about if there’s a new title policy involved, we’re talking about notary fees with solid Trust Attorney Las Vegas, we’re recording the new deed and not the new deed, the new note, but the County that has to get paid for. Uh, so you’re, you’re, you’re looking at a significantly less cost, about half of the cost. And with a, with a refi, those costs are allowed to be rolled into the new loan amount, whereas on a purchase you’re coming in with the closing costs and you’re also coming in with the down payment and then there are ways of mitigating or lowering the expenses on a purchase. Um, but I don’t need to get into that right now.