It’s one of those things that you seem to hear about when you’re not really looking for one. While you’re driving, you’ll hear a radio spot about “no fee mortgage loans,” or you’ll see an ad while flipping through a magazine advertising the same. Maybe you’ll run across an article in the newspaper that touts the benefits of a “no fee mortgage.”
Then one day, you actually need to find a mortgage yourself – and you start to wonder, “How can that work? It can’t really be “no fees” because the company has to have a way to make money, right?”
That’s a great question – and there’s a simple and honest answer to it – at least there is if you’re dealing with Premier Mortgage in Las Vegas.
“I get that question a lot from potential clients,” reveals Rick Piette, owner of locally owned Premier Mortgage Lending. “It can be confusing, and it seems when people hear the words “No Fee” they often translate that in their mind to “free” – which of course would make it difficult for a mortgage lender to stay in business,” smiles Piette. “
Of course Premier Mortgage generates income from the mortgage loans we make, but there are two very important differences between how we do business as a “mortgage broker,” versus how banks and “mortgage bankers” are allowed to operate.
“First, Premier’s earnings – as a mortgage broker – are capped by law. We operate with complete transparency, and we are required to disclose our total earnings to the borrower in writing.
“Second, many borrowers don’t know that banks and mortgage bankers can add “invisible charges” to the cost of your loan – and they don’t even have to tell you you’re paying for it,” explains Piette. “To see if these invisible charges are being applied to your loan, all you need to do is compare the interest rates. For example, if one lender is showing a 4.0% interest rate and another 4.25% – that second lender will be earning an additional .25% on your loan amount over the life of your loan. And that can add up.”
“But there can also be charges for your loan that are shown right on the Loan Estimate form,” he continues.
By definition: In order for a mortgage loan to truly be called a “No Fee” loan, there should be zero costs associated with the Origination Fees that are shown on the Loan Estimate.
That means $0 for Loan Origination Fee, Processing Fee, Underwriting Fee, and Lender Doc Prep Fee.
“At Premier, there are no charges for those items on our traditional loans. But with other lenders, those four things can add up to $3,500-$4,000 – or even more,” explains Piette. “That’s money that comes directly from the borrower – out of pocket – at closing. And it’s been our experience that homebuyers have much better things to do with that kind of money than pay it to their mortgage lender!”
For more information about how to shop wisely for your next mortgage loan – and to save literally thousands of dollars – visit Premier’s “Know Before You Owe Nevada” website to view the quick educational videos. According to Rick Piette, “If ten minutes of your time can save you at least $4,000 on your next loan – then we think you’ll agree that’s time well spent!”
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.