Simply Low Rates

Three Rules to a Low Rate

Getting the lowest rates is Simple. However, it’s really easy to complicate this simple concept. Even more interesting is that almost everyone knows how to keep rates low, but somehow things get lost in translation. The next thing you know their rates simply aren’t that low.

So, how does it work? There are three basic rules to keep your rates low

RULE 1

The first thing to understand is that we all get our money from basically the same places. This means that everyone starts from the same basic low rate. Now what happens after this point will determine what rate is made available to you, the Client.

This is where it can get goofy.

Banks borrow from other banks, who lend to Lenders, that make their funds available to Mortgage Companies, that solicit business from Brokers, that house Loan Officers, and the list goes on, and on.

There are also many variations to this “food chain”, and there is really only one point to extract from all of it. This brings us to Rule #1.

1) The closer you can stay to the original source, the lower your rates.

The idea is to keep as many middlemen out of the equation as possible. Each middleman will have to add to that original low rate in order to cover expenses (How they keep the lights on), and their profit (why they keep the lights on). At Loan Simple we are a Correspondent Lender which means we’ve eliminated all the expensive middlemen. We are the source.

RULE 2

Assuming we are not the only ones that have eliminated the middlemen (we’re not), what else drives up the cost of the rate? Well, it is simply the costs of keeping your business running and profitable. If you’re a GIANT LENDER with branch locations for checking, savings, auto loans, and various other services, than chances are you carry a VERY LARGE overhead. You have the expenses of the real estate (The actual physical location), the business expenses (power, technology, office supplies, etc, etc), and the employees (salaries, insurance, etc, etc).

Guess how they cover this overhead? You got it, by marking up the rates.

At Loan Simple we are like the streamlined stealth fighter jet cousin to that big slow moving locomotive train. We are a virtual office which eliminates almost all of the office overhead. We employ state of the art technology which allows us to eliminate all the headaches, staffing, and expense of running a system that needs all kinds of maintenance and man power. Because we have fewer employees we are able to bring on the BEST of the BEST (This is a big deal and you’ll find out in Rule 3).

At Loan Simple we’ve cut out the overhead so that we can continue to offer the most competitive rates on the market.

RULE 3

“You determine the rate you get.” This is a phrase you’ve more than likely heard. It’s true that your credit history, income, collateral, loan type, and a whole host of other criteria will play a large part in determining what rate you qualify for.

However, how all of your personal criteria is pulled together, and presented, can greatly influence what rate you qualify for.

If you’re working with someone less savvy than a Loan Simple Loan Guide, they may not know the nooks and crannies of programs that don’t penalize Borrower(s) for certain bumps and bruises they may have on their credit history. They may not know the discounts available in certain areas, or who rewards someone with great job time. The person on the other end of the line is just as important as your qualifying criteria.

Remember in Rule 2 when I said we employ the BEST of the BEST?

We do this to ensure that you’re talking to someone who knows how to get you the BEST RATE in the BEST PROGRAM every time you work with Loan Simple. Our Loan Guides live in the minutia of what it takes to get their Client’s the best products on the market.

They’re simply the best

The Simple Truth

At Loan Simple we follow these 3 Rules and it’s what has made us the top in the market. We’re always striving to find ways to get even better and stay ahead of the competition. We’re a nimble machine that evolves with the changes in our economic climate. We keep it Simple.