We don't make loans, but I can show you how to get the
best deal. Remember- your lender has NO DUTY to look out after your best
interest. So, you are
own your own and must protect yourself.
The best information on the web for loans. There is a
LOT of great information on loans on the
links below.
Wholesale
Price + Loan Provider's Markup = Price to Borrower
Like automobiles and TV
sets, home mortgages have wholesale prices. These are the prices
quoted by large lenders or "wholesalers" to the many thousands of
smaller lenders and brokers who deal directly with borrowers. The
wholesale market is extremely competitive, since there are many
wholesalers and their prices are constantly being compared.
Like automobile dealers,
retail loan providers formulate their own price to the borrower by
adding a markup to the wholesale price. Mortgage loan providers
don't ordinarily disclose their wholesale prices because that
reveals their markup, which is their gross profit on a
transaction.
All the abuses to which
borrowers are subjected have the objective of increasing the loan
provider's markup. Here are five of the most common:
Price Low-Balling: Loan
providers sometimes deliberately quote a very low price in order
to "hook" borrowers who are shopping. Later on, the low price
disappears because (allegedly) the market changed, or the lender
discovered fees that were not mentioned before, or for a dozen
other reasons.
Price Omissions:
Fixed-rate mortgages ordinarily have 3 price components, the
interest rate, points, and fixed-dollar fees. Loan providers
quoting prices sometimes omit one or more price components until
it is too late for the borrower to do anything about it.
David Wilson - Real Estate Sales
and Property Management
PO Box 14868 Baton Rouge, LA
70898
Licensed Real Estate Broker - State
of Louisiana
Phone:
225-907-3365
Real Estate for sale in Baton
Rouge, Livingston and Ascension Parish
