So I walk into my "Big Nationalized Bank" to make a deposit yesterday... And, there, on a big lofty bulletin board they are advertizing their rates for all to see. So, I decided to put a few arguments to rest by taking an actual picture of their board...showing the rates.
Why would I do this? Simply put, bigger is not always better. Village Bank Mortgage is positioned in such a way to truly take advantage of "Broker" rate programs...yet have all the efficiencies of a true underwriting machine (AKA: We're fast!)
Let's compare apples to apples:
Loan Amount: $200,000
Credit: 720+
Downpayment: 20%
Loan Structure: 30 YR FIXED
These are the same assumptions most banks use when "quoting" rates to potential borrowers...because it's best case.
This particular Bank is charging 1.75% in Points ($3,500 on a $200k loan) & their APR is 5.355. All things considered, Village Bank Mortgage's rate structure @ 3pm in the afternoon on Oct 15th would look like this:
30 YR FIXED @ 5.125% (5.205% APR) would only require .50 in Points. That's a DIRECT savings to our clients of $2,500!
That's real savings in a market when everyone needs real relief.
Sorry for the short post, but I just wanted to get this out there. I'll explain more (very soon) concerning every other aspect of why "bigger is not always better" as it relates to mortgage companies...
Until next time...
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Josh - Great post! I love comparing my rate sheets to big, national, retail bank down the street when talking to clients. You're right too, there are so many other reasons why big, national, retail banks are not the best source for many buyers.