Insider's Keys: To The Best Rates And Terms On Your Next Mortgage, #1

By Dan A. Pagano

In "Insider's Keys To The Best Rates And Terms On Your Next Mortgage" is an eye-opening journey that will transform the way you think about your mortgage. Discover industry secrets and strategies that will empower you to save thousands of dollars while achieving financial freedom and securing your dream home.

The significance of saving money on your mortgage cannot be overstated. For most individuals and families, a mortgage represents the single largest financial commitment they will ever make. It's not just about buying a house; it's about building a solid foundation for a brighter future. Whether you're a first-time homebuyer or have been paying off your mortgage for years, this book is a roadmap to maximize your financial potential.

Inside these pages, you will unravel the hidden truths of the mortgage industry leveraging the authors twenty six years experience, over four thousand transactions and in excess of  two billion in closed loan volume.  Shedding light and uncomplicating the mechanics and nuances that affect your monthly payments. Gain a comprehensive understanding of interest rates, loan terms, and repayment options. Discover how to negotiate effectively, spot hidden fees, and navigate the intricacies of purchasing or refinancing. Armed with this knowledge, you can take control of your mortgage, rather than letting it control you.

"Insider's Keys To The Best Rates And Terms On Your Next Mortgage" goes beyond the mechanics of mortgages too. Delving into every aspect of understanding what impacts rates, how to mitigate, negotiate and position yourself from the best possible outcome. The book also covers how to become aligned with down payment assistance programs for closing costs as well as down payment requirements.

This book is all about you and building lasting wealth for yourself and your family.

Written in a clear, accessible style, "Insider's Keys To The Best Rates And Terms On Your Next Mortgage" is your guide to claiming your financial future. Packed with practical tips, real-life examples, and industry expert insights, this book will empower you to make informed decisions and take immediate action.

Saving money on your mortgage is not just about financial gain; it's about peace of mind, security, and the freedom to live life on your own terms. Let "Insider's Keys To The Best Rates And Terms On Your Next Mortgage" be your trusted companion on this transformative voyage toward mortgage savings and financial empowerment with the expert guidance of top industry Insiders.

• Language: English
• Publisher: Dan A. Pagano
• Release date: Sep 2, 2023
• ISBN: 9798223402985

Book preview

INTRODUCTION

Buying a home is a significant financial investment that requires careful planning and decision-making. Choosing the right mortgage is one of the most important decisions you will make when buying a home. A mortgage is a loan used to purchase a home, and the interest rate and terms of the mortgage can significantly affect your monthly payments and the total cost of your home. In this book, we’ll discuss strategies for finding the cheapest mortgage rates and terms, so you can save money and make the most of your home investment. Congratulations on taking the step in purchasing this book. I can guarantee it will pay for itself several hundred times, if not thousands of times, with proper implementation.

Here’s the thing… Everyone has a what’s in it for me filter. Everyone. You do, I do, your mortgage company does, and your loan officer (LO) does. This is part of human nature, influenced by fear of loss and/or the desire for gain. In this case, the would-be gainers are your lenders gaining mortgage sales and commissions. The institution’s integrity level and individual LO will dictate if they’re working on your better interest or their better interests (might be a pun there).

Unfortunately, fear of loss (commissions) often kicks in, and the lender doesn’t share that they may not be best suited for your particular lending needs. For this reason, it’s up to you to know how to navigate the world of mortgage lending.

I remember the two years I spent renting a spot on my brother’s couch (thanks again, Don!) while saving up my down payment for my first condo. I could’ve bought two years earlier if my lender stated down payment assistance grants (DPA) were available. But those DPAs were at a different bank. They could’ve guided me to a quicker closing on my first home by making that connection for me. That LO had a high-functioning what’s in it for me filter.

In part, that’s why my number one referral partners are my friends in the industry; notice I didn’t say, competitors. They send me what they can’t do, care not to do, aren’t licensed to do, or don’t have the product or pricing abilities for their consumers. With this network of over sixty lenders, I can circulate deals that align the consumers with the best results for them and their families. My what’s in it for me filter is perfectly rewarded with plenty of closings and a great feeling when I can connect with an industry friend more aligned with the client’s needs than I. Oh… and conversely so.

As you likely ascertained from the last two paragraphs, banks and lenders have different products, pricing, and terms. Through the knowledge gained in this book, you will become competent in navigating this and leveraging it into fantastic rates and terms for your next mortgage.

PART I

UNDERSTANDING MORTGAGE BANKS, BROKERS, AND LOAN OPTIONS

CHAPTER ONE: TYPES OF LENDERS

When it comes to getting a mortgage, there are two main types of professionals borrowers can turn to: mortgage bankers and mortgage brokers. While both work in the mortgage industry, there are significant differences between them. In this chapter, we’ll explore these differences and help you decide which professional best suits your needs.

Mortgage bankers are employees of a specific lending institution, such as a bank or credit union. They work directly for the lender and are responsible for underwriting, processing, and closing mortgage loans. As employees of the lending institution, they have access to various loan products and can approve loans on behalf of the lender. The lender often pays them a salary and mortgage brokers may also receive commissions based on the volume of loans they originate. They are often members of Federally Chartered banks. Therefore, the Mortgage LO has a federal license to lend in all fifty states.

Mortgage brokers, conversely, are independent professionals who work with multiple lenders. They act as a conduit between borrowers and lenders and help borrowers find the best mortgage loan for their needs. Brokers rarely originate loans themselves, but work with various lenders to find the best rates and terms for their clients. The lender or borrower pays the mortgage broker a commission for their services.

It’s worth noting some brokers are delegated, which means the investor or institution the brokers are the conduit to also allows them to underwrite the loan to their standards. This is important as a consumer can feel confident the broker they are in a relationship with will approve them without a communication lag. Additionally, many brokers fund the loan from their lines of credit called warehouse lines. These lines allow the broker to fund the loan and the consumer’s transaction while simultaneously delivering the loan to the investor to be compensated for the loan and the broker’s individual commissions.

One of the most significant advantages of using a mortgage banker is that they work directly for the lender,