{"id":1650,"date":"2007-07-12T09:05:27","date_gmt":"2007-07-12T16:05:27","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1650"},"modified":"2007-07-12T00:06:30","modified_gmt":"2007-07-12T07:06:30","slug":"bankratecom-encourages-stupid-mortgage-banker-tricks","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1650\/bankratecom-encourages-stupid-mortgage-banker-tricks\/","title":{"rendered":"Bankrate.com Encourages Stupid Mortgage Banker Tricks"},"content":{"rendered":"

Here is a sampling of mortgage offerings on Bankrate.com<\/a>. (for July 11, 2007)
\nI chose a $252,000 loan for a $315,000 purchase price in Phoenix. Income and assets need to be verified. Credit score of at least 620. I assume a 1% origination fee and about $1200 in APR loan costs. I would have priced that loan on July 11, 2007 at 6.5% with an annual percentage rate of 6.679%.<\/p>\n

Take a look at the variances on Bankrate.com . Can you see the stupid mortgage banker tricks that can be played? The lower rate offerings are stacked with APR fees. In reality, those “fees” are truly discount points but the advertisers know that the consumer eschews the term “points”.<\/p>\n

Bank of America and Countrywide have been advertising “No Closing Cost” loans on television. So, why does B of A reference their no closing costs loan but quote a rate with .537 discount point and $1155 in APR fees? It’s the rate, stupid!<\/strong> Mortgage shoppers won’t call if they published the rate of over 7% for their “no closing cost” loan.<\/p>\n

Confused? Bankrate.com would be better serve a consumer if they isolated a rate for a specific loan offering and insisted that the advertisers compete on fees. Then, rank those advertisers from lowest fees to highest fees.<\/p>\n

That’s assuming that mortgages are a commodity<\/strong>. Even Bankrate.com knows that just ain’t true.<\/p>\n","protected":false},"excerpt":{"rendered":"

Here is a sampling of mortgage offerings on Bankrate.com. (for July 11, 2007) I chose a $252,000 loan for a $315,000 purchase price in Phoenix. Income and assets need to be verified. Credit score of at least 620. I assume a 1% origination fee and about $1200 in APR loan costs. I would have priced […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-1650","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2663,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2663\/once-more-with-feeling-mortgage-rates-are-determined-by-mortgage-bonds-mbs-not-the-ten-year-t-note\/","url_meta":{"origin":1650,"position":0},"title":"Once More With Feeling- Mortgage Rates Are Determined by Mortgage Bonds (MBS), Not The Ten Year T-Note","author":"Brian Brady","date":"February 26, 2008","format":false,"excerpt":"Mortgage rates are volatile today...very volatile.\u00a0 There are two underlying factors contributing to the volatility: suspicion of the credit quality of the MBS market and supply\/demand imbalance (more people want money than is offered). Why am I so adamant about the fact that the ten-year treasury note is not the\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":933,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/933\/addressing-what-matters-about-mortgage-matters\/","url_meta":{"origin":1650,"position":1},"title":"Addressing what matters about Mortgage Matters","author":"Greg Swann","date":"January 23, 2007","format":false,"excerpt":"I have a certain affection for the Mortgage Matters weblog by Holden Lewis at Bankrate.com. It's a little bit enbubbulated, but that's to be expected from what is, in fact, a mainstream media outlet. That notwithstanding, the site is very informative, and a lot of fun to read. I get\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12260,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12260\/how-mortgage-originators-will-be-compensated-by-borrowers-under-the-financial-regulatory-reform-act-of-2010\/","url_meta":{"origin":1650,"position":2},"title":"How Mortgage Originators Will Be Compensated By Borrowers Under The Financial Regulatory Reform Act of 2010","author":"Brian Brady","date":"June 14, 2010","format":false,"excerpt":"Want to \"finance your closing costs\" but are confused about the disparity in offered mortgage rates?\u00a0 You might have to thank the Financial Regulatory Reform Act of 2010 (H.R. 4173) for limiting your ability to structure your loan fees.\u00a0 Read pp 1486- 1490, specifically Section 9903 of the Bill; Prohibition\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1537,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1537\/ask-the-broker-whats-up-with-my-apr-and-why-is-it-so-different-from-my-interest-rate\/","url_meta":{"origin":1650,"position":3},"title":"Ask the Broker: What’s up with my APR, and why is it so different from my interest rate?!?","author":"Morgan Brown","date":"June 13, 2007","format":false,"excerpt":"Hot out of the broker oven mailbox today is this question: I am in the process of refinancing. Can you please tell me what the APR should be for a $295,800 loan? The broker is charging 2% origination fee and 1.5 loan discount. The interest rate at 6.64. I'm not\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1460,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1460\/extreme-transparency-in-lending\/","url_meta":{"origin":1650,"position":4},"title":"Extreme Transparency in Lending","author":"Brian Brady","date":"May 22, 2007","format":false,"excerpt":"Mortgage brokers have been under assault by the extreme transparency advocates these last few years. Very smart people have embraced technology as the catalyst of change. They proclaim that technology will change how the American public compensates mortgage brokers. I think their advocacy has some merit. Most consumers just don't\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16\/digging-for-the-news-on-interest-rates\/","url_meta":{"origin":1650,"position":5},"title":"Digging for the news on interest rates","author":"Odysseus","date":"November 24, 2005","format":false,"excerpt":"Note this from the Arizona Republic:Mortgage rates around the country, which have been trending upward, dropped this week, offering a dose of good news for prospective home buyers. Mortgage giant Freddie Mac reported Wednesday in its weekly survey that rates on 30-year, fixed-rate mortgages averaged 6.28 percent. That's down sharply\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1650"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1650\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}