We Don’t Need Large Fees for our Low Rates
24 Apr 2022
A lender explains why their organization offers low mortgage rates without charging large upfront fees, unlike competitors who rely on high fees to offset thin margins as interest rates rise.
A lender explains why their organization offers low mortgage rates without charging large upfront fees, unlike competitors who rely on high fees to offset thin margins as interest rates rise.
Helpful advice to today's homeowners. We all know interest rates have gone up. Many lenders have very wide margins. So they're really taking a beating right now. And they're afraid of future servicing runoff, meaning the loans they close now with high interest rates. If rates drop at a year or two down the road, they'll probably lose a lot of that book of business to future refinances. And they would no longer receive servicing money on that from the interest. So instead of increasing their rates even further, they're just charging thousands of dollars in upfront fees they normally wouldn't charge. We don't have that problem. We can provide the lowest rates and not charge fees to get there.
