| When you deal with
a loan agent from a bank, they work for the bank and will
generally do what is in the best interests of the bank, or the
best interests of the loan agent.
One of Wymac Capital, Inc.'s loan
agents used to work for a large savings bank that pushed a
specific type of adjustable rate mortgage. They would give
their clients the option of a fixed rate mortgage, but do
everything in their power to convince them to accept the
adjustable rate mortgage. The loan agent pushed the adjustable
rate mortgage because he was paid more for adjustable rate
mortgages. For example, on a $200,000 mortgage:
- If the customer took an
adjustable rate mortgage the commission to the loan agent
would be roughly $1,300 for the transaction.
- If the customer insisted on
getting a fixed rate, then the compensation to the loan agent
was only $250.
Which loan do you think was sold
more often to this bank's customers?
Wymac Capital, Inc. usually gives
the borrowers several options and the borrowers decide which
best fits their needs. |
