Costco: Our supplier of food, clothes, jewelry and… loans?
Costco… We all know it and love it even though it’s where many of us spend too much money. But how can you resist the steals?! It’s nearly impossible. Costco has been our long time supplier of great deals on T.V.’s, prescription eyeglasses, photos, food, clothing, jewelry.. the list goes on forever. I didn’t think it would be possible, but Costco is the newest supplier of another commodity; Mortgage? Yes, Mortgage. CNNMoney put out a very informative article on the issue upon which this blog is based. The link for the complete article is at the bottom of this blog.
According to CNNMoney Costco did a year long testing of their mortgage program before they chose to bring it to their stores on a large scale. Their mortgages are in partnership with First Choice Bank, a New Jersey based community bank and ten other lenders. Through this program Costco partners have “issued more than 10,000 mortgages to members”. This number is, not shockingly, expected to be catapulted up to the millions.
Here is one success story from a Costco loan:
Ray Sheets, FedEx courier picked up a brochure on home loans through Costco and followed the directions. Went online, filled out the paperwork and was able to access four different offers from four different lenders. Everything was conveniently listed up front: rates, closing costs and terms. According to Sheets, he was able to get a closing cost that was “about a third of what he would have had to pay through other lenders”.
Several weeks later Sheets “refinanced his $170,000, 15-year fixed mortgage carrying a 4.25% rate into a 30-year fixed loan with a rate of 4%”. This refinance allowed him to lower his monthly payment by about five hundred dollars.
Costco expects to branch their financial district to also include car and student loans. Currently the options available are insurance for health and your vehicle as well as offering stock brokerage services. It makes sense that the company is always looking for the next thing and the market is improving for sellers, so why not jump in now?
For more details on their requirements and standards visit Costco’s website.
If any of you who need loans out there have been denied by conventional lenders due to bad credit or a bankruptcy and are in need of another option you might want to consider a hard money loan. Here at Sun Pacific Mortgage and Real Estate we grant loans for people with bad credit or who have a foreclosure or bankruptcy on their record. If you’re one of these people give us a call today!
Article this blog was written on, just click this link.
Lynn Tardibuono – Flipper Chick- Real Estate Agent and Co-Owner of Sun Pacific Mortgage and Real Estate. Serving Sonoma County since 1988. Her number is (707)523-2099 and you can also visit our redesigned website at http://www.sunpacmortgage.com Also be sure to like us on facebook! Click this link!