Refinancing

Refinancing - When you get ripped off and believe that you got a great deal, it’s hard to tell someone the truth. I ran into this situation often as a Loan Officer. The home loans industry is a dirty one. And times are catching up to people. The Option ARM is going to leave people without an option (excuse the pun). These loans were heavily pushed when they were brand new and the rates on most mortgages were at an all time low. The Option ARM (Adjustable Rate Mortgage Loans) for those that are unfamiliar is also known as the 1 percent loan. The payment factor is 1 percent but the actual payment due is much higher. Many people are familiar with it now.

So the situation usually goes like this. Customer that has gotten ripped off by another loan officer, decides that this time they are going to do it “right”. They call up a bunch of companies, ask a lot of questions, and “negotiate” for the best deal. I have no problem with that, in fact I encourage it. But some people just do it to make sure that their local loan officer is giving them a deal that is “close enough”. Some people could care less about a few thousand dollars difference. But that’s sales 101, people don’t buy on price, they buy on emotion. I don’t cater to well to the emotional buyer, because that is what got them into a big mess in the first place.

And while they do nothing but avoid the loan officer and company that ripped them off in the first place, that loan officer just bought a brand new Hummer with their commissions. When it comes down to it, people are weird. I had made a program that would take the rates from 20 to 30 banks and extract the mortgage rates so I could give a mortgage quote. So when a bank came out with a “special” I was always ahead of the competition. Problem is, if you quote to low, no one believes it. So I am forced to quote higher and make more money just to satisfy the customer. What a crazy world.

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