Have you been overcharged for your home loan?
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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Come on, wouldn’t it be expected that a neighborhood full of college graduates would most likely have better jobs, more income, better credit….thus pay less for a loan, does this not make sense to you?
They are comparing A paper verses Subprime (which I really didn’t do much of and they don’t exist anymore so it really doesn’t matter)….Subprime loans were WAY WAY more work, would you not expect to charge more if more of your time was taken up?
This has nothing to do with race at all. It does have something to do with education. Educated people make more money, have better credit AND yes they also shop more.
I don’t do subprime loans, I do almost all FHA, government insured loans. And the people that have really bad credit, I will work very hard to help them, but they do pay more for their loan to me because they take up a LOT more of my time and my office’s resources. This has to make sense, right?
Or do people really think loan officers should work for free (I mean you have somewhere on this site that my fees are “junk” fees, I assume when you charge for your services you don’t say “here is my junk fee”, do you)?