Free Wholesale Interest Rate Program
The Free Wholesale Interest Rate Program*
My Free Wholesale Interest Rate Program applies only for a purchase - anywhere in California.
Briefly, if you allow me to refer you to a Realtor Partner who has agreed to participate, then I will pass on the Wholesale Interest Rate to you, and I have pre-negotiated with the Realtor so that they will pay for the Loan Origination Fee. So - the Wholesale Interest Rate is FREE to you.**
This will save you thousands of dollars. I have done many deals this way. Buyer's love it, and even the Assistant Commissioner of the CA. Department of Real Estate agreed it would benefit the home buyer and wished me the best.
Ever since I became a mortgage broker many years ago, I have always tried to figure out the smartest way for someone to get a home loan on a purchase. There seemed to be a lot of commission money paid to Realtors, and there wasn't that much needed to compensate the mortgage broker, relatively speaking, in order to get the loan done.
I soon realized if the Realtor and Mortgage Broker could somehow cooperate, then we could structure the transaction so that the Buyer could get a much better deal. That was what is behind my Free Wholesale Interest Rate Program.
The Realtor and Mortgage Broker (me), agree to make less money, and allow the home buyer (you), to avoid a Loan Origination Fee, yet still get the Wholesale Interest Rate.
Normally, to get the wholesale interest rate, you would pay a Loan Origination Fee (LOF), often called "points." (Note - a point is simply one percent of the loan amount. As an Upfront Mortgage Broker, I publish my Loan Origination Fee schedule on my website).
My standard practice on a Refinance is to pass on the wholesale interest rate to the borrower, and therefore I must charge a LOF, since there is no rebate, or YSP, from the lender.
If there is any YSP, then I always credit that to the borrower.
However, for a purchase, there is a creative, and I believe a smarter way to obtain your loan.
As mentioned above, if you allow me to refer you to a Realtor, then the Realtor and I have an agreement in place whereby the Realtor will pay for the LOF that I charge.
I can do this for a home purchase anywhere in California - as I am connected to hundreds of Realtors throughout the state.
You can think of it this way. It's not too much different from getting a Seller to credit you back for some of your closing costs, which is very common. However, instead of trying to negotiate that with the seller, it is already done BEFORE you ever make an offer. You just receive the credit from the Realtor instead of the Seller.
Everyone wins in this case. You benefit the most by receiving the wholesale interest rate without having to pay for it. The Realtor receives a commission that they otherwise would not have received because of the referral, and I as the mortgage broker still get compensated. Even the Seller benefits because now it is easier for the Buyer to qualify, as the rate will be lower, and closing costs will be lower.
My philosophy is to pass on savings to buyers, and although my compensation may be less than most others, increased volume will make up for it.
* A "Free Wholesale Interest Rate " means that you will receive the wholesale interest rate without paying for it.
Other NRCCs (Non-Recurring Closing Costs) still apply.
** Note - if the gross commission to the Buyer's Agent is too low because the purchase price is too low, then I must charge a nominal amount to at least equal the minimum commission shown on my Loan Origination Fee page.
