My Free Home Loan Program applies only for a purchase - anywhere in California.  

The essence of this program is if you allow me to refer you to a Realtor Partner who has agreed to participate, then I will pass on the Wholesale Interest Rate to you, and there will be NO net charge to you for a Loan Origination Fee.

This will save you thousands of dollars.  I have done many deals this way.  Buyer's love it, and even the Assistant Commissioner of the CA. Department of Real Estate thought it was clever and wished me the best.  I made sure I had his blessing to be on solid ground to offer this creative program.

Ever since I became a mortgage broker many years ago, I have always tried to figure out the smartest way for someone to get a home loan on a purchase.  There seemed to be a lot of commission money paid to Realtors, (deservedly so) and there wasn't that much needed to compensate the mortgage broker, relatively speaking, in order to get the loan done.  (Please note that I am only talking about the compensation that goes to the mortgage broker.  Non-Recurring Closing Costs, like lender fees, title and escrow fees, the appraisal, etc. are totally separate.)

I soon  realized if the Realtor and Mortgage Broker could somehow cooperate, then we could structure the transaction so that the Buyer could get a much better deal.  That was what is behind my Free Home Loan Program.

The Realtor and Mortgage Broker (me), agree to make less money, and allow the home buyer (you), to avoid a Loan Origination Fee (net), yet still get the Wholesale Interest Rate.

Normally, to get the wholesale interest rate, you would pay a Loan Origination Fee (LOF), often called "points."  (Note - a point is simply one percent of the loan amount.  As an Upfront Mortgage Broker, I publish my Loan Origination Fee schedule on my website).

My standard practice on a Refinance is to pass on the wholesale interest rate to the borrower, and therefore I must charge an LOF, since there is no rebate, or YSP, from the lender.

If there is any YSP, then I always credit that to the borrower.

However, for a purchase, there is a creative, and I believe a smarter way to obtain your loan.

As mentioned above, if you allow me to refer you to a Realtor, then the Realtor and I have an agreement in place whereby the Realtor will offset the LOF that I charge.  In essence, they are crediting you for the LOF from their commission that essentially comes from the seller.  I can do this for a home purchase anywhere in California - as I am connected to hundreds of Realtors throughout the state.

You can think of it this way.  It's not too much different from getting a Seller to credit you back for some of your closing costs, which is very common.  However, instead of trying to negotiate that with the seller, it is already done BEFORE you ever make an offer.  You just receive the credit from the Realtor instead of the Seller.

Everyone wins in this case.  You benefit the most by receiving the wholesale interest rate with no "net" cost.   The Realtor receives a commission that they otherwise would not have received because of the referral, and I as the mortgage broker still get compensated - although perhaps not as much as "normal."  Even the Seller benefits because now it is easier for the Buyer to qualify, as the rate will be lower, and closing costs will be lower.

My philosophy is to pass on savings to buyers, and although my compensation may be less than most others, increased volume will make up for it.

If you are shopping for a home in California, if it's not too late, please feel free to contact me and I can answer your questions about this program.
 

* A "Free Home Loan" means that you will receive the wholesale interest rate without paying for it.  Other NRCCs (Non-Recurring Closing Costs) still apply.