When 6.875% Is a “Low Rate” Online Notary Service Too
ONLINE NOTARY SERVICE
We learned about an online Notary service today that can notarize documents for almost anyone at any time from anywhere.
This is something we will take advantage of often, and you can check them out at Notarize.com.
Sadly, this service will replace many mobile notaries and signing services.
This is one more example of technology replacing people and another reminder for all us to stay ahead of the technology curve so we don’t get replaced too.
WHEN 6.875%* IS A LOW RATE
We sometimes have borrowers come to us for a second opinion after they are quoted what they think is a very high rate by a loan officer.
This happens more often than not with “non-qualified-mortgages” or “Non-QM Loans” (loans that fall outside the Fannie/Freddie/Jumbo/FHA boxes; the new “sub-prime”).
But, it often turns out that it is just a case of the loan officer doing a poor job of explaining to the borrower why his or her rate is so high.
With respect to most non-QM loans, the borrowers simply don’t qualify for traditional financing so non-QM financing is the only option.
This is especially the case for borrowers who can’t verify income in the traditional manner (W2s and Tax returns).
For these borrowers, 6.875% is a very low rate compared to the alternative “hard money” financing, which is usually in the 9% range.
We see similar situations with traditional, QM financing too.
A buyer with a 680 credit score putting 5% down for a condo purchase will get an interest rate that is at least 1% higher than the rates we quote our strongest jumbo buyers.
We spend a lot of time defending our competitors in these situations 😊.
If we can’t beat a rate by at least 1/4% and/or offer vastly better service, we readily tell potential clients they are getting a good deal and should stay where they are.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646