Real Estate NewsConsumers Give "Mortgage Exam" High Scores
Chad Chessen of Exeter, NH was about to save $123 a month with a refinanced loan that would knock a full point off his 8.375 percent, 30-year-mortgage, but he changed his plans when he learned he could save much much more.
Rather than simply refinance his mortgage with a cheaper rate, he tapped the equity from his two-year-old home, paid off his $600-a-month car loan and rolled the amount into a new 21-year mortgage at 7.375 percent.
Rolling the 10 percent car note into the new mortgage pushed his monthly payment up from $1,460 to $1,643 a month, but now all his interest is tax deductible and the shorter term will save him more than $80,000 over the life of the loan.
"I had an 8.375 percent loan and was refinancing to another 30-year mortgage just to save a point. The $65 I paid showed me that was not a big deal," said Chessen, a messaging and fax software salesman.
Chessen paid $65 to take a "mortgage exam" which taught him how to parlay his mortgage plans into tens of thousands of dollars in savings he may not have otherwise considered.
The mortgage exam is not really a test, but a review of your mortgage needs, your creditworthiness and your financial ability -- all to help steer you away from unnecessary mortgage costs and toward the most economical and financially advantageous home loans.
Exeter, NH-based MortgageExam.com is the brainchild of mortgage expert, Jeffrey A. Arndt, who is looking to cash in 25-years of mortgage experience on a work-at-home dot com venture to help mortgage consumers get the most for their money -- without getting taken.
Arndt, a former mortgage broker and financial planner who will soon quit his mortgage wholesaler job to run MortgageExam.com full time says the idea to hold a mortgage consumer"s hand and guide him or her through the mortgage maze is not new.
White Bear Township,MN mortgage expert, Roger Harrington offers mortgage consultation services for $100 to $300 and Wayne, PA-based Jack Guttentag, the "Mortgage Professor" oversees the "Upfront Mortgage Broker" program of brokers consumers pay to work on their behalf.
For years rates have fallen and the number of loan programs have soared. No-down, low-down, easy-qualifer, 100 percent-plus financing and a plethora of other programs have consumers scrambling to cash in, but they often lack the time and knowledge to adequately scrutinize what"s available and what"s best for them. During the recent boom in loan programs, predatory lending also has taken its toll on consumers who can least afford the exorbitant fees that often come with them and legitimate sub-prime loans.
Finding the best mortgage fit just isn"t an easy task.
"When you walk into a broker"s office, the broker is there to try to get the business. There is nothing wrong with that. Many brokers will give you the straight up, but Company A is not going to be harping about Company B," Arndt says.
He says MortgageExam.com is designed to act as a sort of second opinion to make sure you don"t overlook the possibilities. He promises the service will not lure you to or away from a specific lender or broker.
For $65, Arndt analyzes your finances, credit worthiness, mortgage plans and any offer you may have received to render an opinion about the rate and terms of the offer. He will also tell you what questions to ask the broker or lender and what fees and costs you can expect to pay or should not pay, he will advise you on negotiating points, note what loan program options you may have and suggest financing approaches to consider.
His opinion comes with a money-back guarantee. If he has to pull your credit report, the $10 fee is not refundable, but you can use a credit report you"ve already obtained for a loan.
When Hudson, WI advertising consultant Dan Seidler was looking to finance his new home"s construction, MortgageExam.com warned him to look out for lenders who would try to offer him more expensive "no-qualifying" loans, to overcome the need to verify his income.
"He said because I was self-employed lenders might try to charge me more on a no-qualifying loan and that"s what happened. My credit was good and I didn"t need that kind of loan. When you are talking a loan for a couple hundred thousand dollars, $65 is a good deal for piece of mind," Seidler said.
Arndt says the service can be especially useful for borrowers with credit dings who go to brokers who don"t write FHA mortgages and steer borrowers to costlier sub-prime lenders.
"Most subprime borrowers can qualify for an FHA loan. If nothing else, it gives you the opportunity to go out and shop some more," says Arndt.
Donald Heller, a traveling software consultant and salesman from Green Valley Lake, CA is on the road more than he"s at home and simply didn"t have the time to traverse the mortgage maze to examine his options on an equity line that was about to roll over at the existing rate.
"I"m on the road so much I just didn"t have time to deal with it so I just let it roll over. Mortgage Exam did tell me I could have gotten a better rate. And they talked about what to do instead of going through a bank to get a better rate and lower points, the difference between a variable and a fixed. It would have taken me a lot longer on my own to get this information. If I get some time off I"ll do a refinance," said Heller.
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