Are “No Fee” mortgage loans the same with every lender? No, they aren’t.
Surprised to hear that? A lot of people are. But the truth is, what is called a “No Fee” mortgage loan can be so different from one lender to the next, that the cost of getting a “No Fee” mortgage loan can cost a borrower $0 … or thousands of additional dollars they may not even realize they’re paying over the life of their mortgage loan. (Spoiler Alert: Premier Mortgage Lending has the $0 cost one.)
Then how can they call them all “No Fee” mortgage loans? Well, that’s a darn good question. And Rick Piette, owner of Las Vegas based Premier Mortgage Lending would like to help explain how that happens.
“You see, when you’re shopping for a mortgage loan, whether you’re getting what common sense tells you is an actual “No Fee” loan all depends on what type of lender you’re dealing with,” states Piette. “In other words, is it a Bank, a Mortgage Banker, or a Mortgage Broker?” (For more information about the differences between these types of lenders, see our quick explainer video here.)
“Because the kind of mortgage lender you choose is what makes the difference in the true meaning of the words “No Fee.””
To put it in the simplest terms, it’s based on these two criteria:
1. A Mortgage Broker can only earn income from one source (which is usually the lending institution). A Bank or Mortgage Banker can earn income from multiple sources (that can be the lending institution, third-party loan servicers, and the consumer).
2. A Mortgage Broker must disclose all their earnings to the borrower. A Bank or Mortgage Banker does not have to disclose to the borrower how much they earn on their loan.
The reason for the differences in requirements for these entities lie in the legislation that affects Banks and Mortgage Banks differently than the laws that affect Mortgage Brokers. To get a more detailed explanation about how these visible vs. invisible charges work, we invite you to take a look at our previous blog article, “Mortgage Loan Charges: Some You See, Some You Don’t.”
“For those currently – or soon to be – in the market for a mortgage loan, it’s important to shop around with more than one lender, and to know the right questions to ask them,” adds Piette. “We don’t ask borrowers to just take our word for it, either. We’re happy to offer them the proof – and we encourage them to ask the other lenders they speak with to offer them the same thing. After all, how can you make the best financial decision for you and your family without having all the facts?”
To learn more about the experienced professionals available to help you save money on your mortgage loan, call 702.485.6600 – or visit the Premier Mortgage Lending website.
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.