It was no surprise to us when a study last week revealed that minorities and people without college degrees pay more in mortgage fees than do white applicants and those with a higher education.
According to the study, “..Those living in neighborhoods where all adults have a college education typically paid $1,100 less in fees than those where no residents had a college education.”
Think about this for a second. Online mortgage shopping — loan officers “competing” for your business — was supposed to make loans cheaper for borrowers, right? So how were so many people overcharged over the past several years? One reason has been the lack of transparency in the mortgage loan industry. Sure, a lender may tell you they have a great loan for you…but how do you know if they do or not?
The only way to effectively shop for a loan is to have access to the same information loan officers do. Then it’s no longer a matter of who can do the best job selling you on a loan, but who can actually deliver the loan.
That’s what we’ve been trying to do for the past year with our mortgage rate search engine: level the playing field between consumers and borrowers with information lenders use when finding loans for their clients.
And if we can save you $1100, we’re thrilled!
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