What's More Important - Rates or Service?

With the current mortgage interest rate environment increasing, a large percentage of refinance transactions has diminished.  There are still reasons that refinances will continue to happen - shortening of the term, taking cashout from the increased equity in the property based on home value run up or other life events - divorce, college tuition, etc...

The decrease in refinance volume and the increase in rates has put pressure on pricing.  Some lenders will try to decrease their internal margins to make up for revenue by doing more volume, while others will increase their margin to be able to do less transactions while maintaining needed revenue.  For the consumer, the lower the margin a lender charges, the better the terms are for you both short and long term.  A difference in a 30 year fixed loan of 1/4% can increase or decrease how much you pay in interest for the length the loan is outstanding.  The larger the loan amount, the more this gap widens.

Lately, mortgage bankers have started marketing that the service is more important than the rate.  While service is very important, it is also something that should be expected.  Some of these loan officers that market about their service are also the ones that you may not hear from after the application has been signed as they turn it over to a processor or an operations center in the middle of the country.  Receiving updated milestones from the automated system may be as much for the loan officer to know where your loan is as it is for you.  

Working with an independent mortgage broker like mortgage95, you can count on the same person that pre-qualifies you is also the person that will work with you throughout the transaction.  This means you have one licensed person that can answer all of your questions and will be on top of getting you to the closing table with excellent communication and service.  This is why we feel from a service perspective, we excel.

Let's get back to rates.  Our function as a mortgage broker is to provide the service above and put you with the lender that will give you the best terms available.  If you look at our pipeline, there are often ten different lenders being used at any given time.  This is because we have all of our compensation contract for all programs available set at the same percentage at each lender.  This insures our clients that not only will we provide you with excellent service, but we will offer you the best terms available.  Period.  

We know service and terms are equally important to our clients.  This is the reason we are an independent mortgage broker company.


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.