What is US Mortgage Watchdog
YOUR KEY TO SAVING ON MORTGAGE COSTS
- Using Mortgage Watchdog is Free (that’s right…no cost)
- Statistics show that the average borrower pays more than $725 in unnecessary fees, not including Origination Points, which can add significant cost.
- Mortgage Watchdog will likely save you a minimum of $725 to $1,500 in fees as well as a significant amount in long term interest by negotiating a lower interest rate.
- There is nothing to lose and a lot to gain.
SERVICES PROVIDED BY MORTGAGE WATCHDOG
- We will interview you to ensure you get the right loan for your situation.
- We will review your preliminary loan documents to ensure that you are not being overcharged.
- We will review your closing paperwork prior to the closing to ensure that the terms are exactly as Mortgage Watchdog previously negotiated for you.
- We will ensure that there are no unexpected delays that would prevent your loan from closing as scheduled.
BACKGROUND
As a result of inconsistencies in the rules for mortgage bankers and mortgage brokers, it is very difficult for even a seasoned borrower to shop around and compare loans.
The key result of a Bureau of Economics report released by the Federal Trade Commission in June, 2007 found that:
- Current Mortgage disclosure forms failed to convey key mortgage costs to many borrowers.
- With current disclosures, borrowers misunderstood key loan terms. For example:
- 87% of respondents were unable to identify the total up-front cost.
- 79% of respondents were unable to identify reasons the interest rate and APR may differ.
- 51% of respondents could not identify the loan amount.
- Although, when and if an improved disclosure form is implemented there will be improvements in borrower understanding, there will still be significant areas which are not understood well.
WHY IT’S IMPORTANT FOR YOU TO PARTNER WITH MORTGAGE WATCHDOG
- A mortgage transaction is one of the largest financial transactions you will ever make.
- The mortgage process is extremely complicated.
- The average mortgage signing contains more than 50 documents requiring more than 50 signatures and / or initials.
- Two people are required to cover the terms and conditions of a mortgage loan being sold to you.
- The loan officer working directly with you
- The escrow officer.
- Should questions regarding changes to the terms or cost of the transaction arise during the signing, the loan officer usually provides the response.
- This puts you at a big disadvantage. Remember, neither the loan officer nor the escrow officer will get paid unless all documents are executed and the loan gets funded. It’s far better to have your questions answered by Mortgage Watchdog prior to the closing.
EXAMPLE OF YOUR SAVINGS
You are being sold a 30 year fixed rate $250,000 loan at 6.50% interest rate and are being charged a 1.0% origination fee, with a monthly principal and interest payment of $1,580.17. However, if the going rate for this loan is 6.0% with a 1% origination fee, your payment would be $1,498.88, a savings of $81.29 per month. Over just a five year period, you would have a net savings of $4,478.40 plus however much could be earned by investing those savings. Over the full thirty year term, the net savings would be $28,865.40 plus however much could be earned by investing those savings.
Whenever the rate is negotiated lower, you will reap the benefits of the Mortgage Watchdog service with each monthly payment.
Although the interest rate in Example 1 above has been reduced as a result of Mortgage Watchdog’s review, it may also be possible to get the origination point up front waived and other fees reduced, in which case you will see additional savings.
Now see Example 2 below for a chart detailing this scenario where, because Mortgage Watchdog was able to convince the lender to drop the Origination Points, your net savings is $6,978.40 in just the first five years, and $31,365.40 over thirty years plus however much could be earned by investing those savings.
OTHER ADVANTAGES FOR YOU
You will be able to buy with confidence, knowing that the entire loan process will be reviewed, before you sign the loan documents, by an independent third party home loan expert, working on your behalf.
SUGGESTIONS FOR YOU
It is suggested that you get a minimum of one quote from a lender. In order to get an accurate quote, you will need to provide a social security number, financial information, etc. You are advised to then sign up for the services of Mortgage Watchdog to ensure that you are not overcharged for your loan.
The website is http://www.usmortgagewatchdog.com/.
Among other things, Mortgage Watchdog will review your pre-disclosure documents for “Yield Spread Premium” (YSP), which is a kickback scheme designed to make more profit for the party arranging the loan at the expense of increasing your interest rate and monthly mortgage payment.
If it is necessary for you to get additional quotes, Mortgage Watchdog will advise you. While additional inquiries on your credit are generally not a big problem, it is always simpler for you to deal with fewer lenders.