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Bloomberg Businessweek

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May 16, 2021

About Low Rate Co.’s Low Rates

agent explaining rates

How does Low Rate Co. guarantee the lowest rate?

Low Rate Co was built to guarantee the lowest rates. By simply employing Salaried-Non Commission based employees, the cost to close a loan is 75% cheaper. Low Rate Co passes that cost back to you, allowing Low Rate Co the ability to offer the Lowest Rates in the industry.

How does Low Rate Co. close in days vs months

Low Rate Co. uses issues industry leading technology to issue instant approvals in minutes, at the time you apply compared to the typical 30-60 day wait and see manual loan process. With Low Rate Co EVERYTHING can be done in minutes online, from generating your rate offer to completing your appraisal, Low Rate Co can close in days vs months.

How do I shop for the lowest rate?

There are many websites that pull rates from most national lenders so you can compare them all. Low Rate Co goes beyond and pulls rates from these same sites daily in real time and is constantly adjusting its rates to be lower than the lowest so when you shop you always come back to Low Rate Co. So when you come to Low Rate Co you’ll see that we’ve done the shopping for you!

Why do all banks offer different rates when they offer the same loans?

That’s a great question! Banks all have a cost to running their businesses and all businesses are in the business of making money. If “your local lender” has to pay “Larry the loan officer” 10,000 in commissions to sell you a rate, then the rate Larry sells you will be higher than the rate of the lender that pays “Linda the loan officer” a fixed salary. The more it costs a bank to close a loan the higher the rate for the customer. Low Rate Co does not pay commissions so the rate you pay is less.

My bank was offering a no fee loan, how does that work?

Remember, businesses are in the business of making money, so there is no such thing as a free loan. When banks offer you a no fee loan they raise your rate to offset this offer. How else are they going to pay the loan officer their Comission? So you may not pay any fees to close, but you may pay $100/more per month in interest. Over 30 years that’s 100/mo x 360 payments = $36,000.

What’s the difference in a bank and a broker?

A Bank or Lender, lends you their money, a Broker brings your loan to a Bank or Lender and request a loan on your behalf. The broker then typically charges a fee for assisting with processing the loan file. This can be useful for clients who don’t know how to find the right Lender. Low Rate Co is a Lender and does not pay Broker fees.

What’s the mortgage process like?

For years the mortgage process included the borrower applying over the phone or in person, talking to a loan officer, taking days to review rate options or get Pre approved, emailing, faxing or mailing paperwork, re submitting additional documents, meeting an appraiser at their home, going thru a physical underwriting process, having their employer complete a physical employment verification form, providing additional paperwork before closing, meeting a notary in person who mails a huge stack of docs back to the title company, then wait a few days to hear from the loan officer that the loan finally closed. This is a 45-60 day process and most banks still abide by.

The Low Rate Co mortgage process includes: The Low Rate client applying 24/7 online in minutes, instant low rate guarantee price offer, instant rate lock, instant appraisal, instant approval. Everything can be done online from importing your docs to instant employment verification so your employer doesn’t have to get involved in your personal loan business. When you close Low Rate Co has e closing services available so gone are the days of signing 200 docs in person!

What are the typical loan fees?

Typical loan fees are $1000 for a bank to underwrite your loan, $500 to process your loan, $300-500 to appraise your home, $500-1000 to complete the title and escrow process, $150-200 to notarize the closing docs and $100-200 to ship and record your loan. These fees can vary state to state as well as be higher for larger loans and lower for smaller loans. 

How do I boost my credit score?

You can always boost your score over time by keeping low balances on your accounts and always paying your bills on time. If you need a short term solution you can; remove and erroneous derogatory accounts, pay your balances down, remove yourself from any co signed accounts that may be negatively reporting, limit or remove additional credit inquiries, and use credit monitoring systems so you can manage all credit activities.

What credit score is needed to qualify?

You can qualify for some mortgage programs with as low as a 580 credit score.

Should I buy or rent?

Buying has its advantages in that your payments can be fixed or locked in w a future certainty in place, where rents historically rise. Over the term your payments reduce and pay off the debt so over term you’d have an asset vs rent which is a monthly liability that goes towards paying off the land lords debt. Real estate historically has always gone up in value and provides additional tax advantages to be discussed/confirmed by one’s tax advisor. 

How much do I need to save to buy?

First time buyers need to save 3%, if you’re a repeat buyer you can put down as little as 5%

What’s a refi?

A refinance is a loan for an existing homeowner who needs to replace their current loan. Common reasons include a lower rate, shortening the term to pay off the loan faster, taking cash out for home improvements or paying off debt. Most homeowners will refinance several times over the term of their loan. Low Rate co will make continuous offers to its clients whenever it’s sees a Low Rate advantage.

What’s a Pre approval?

A Pre approval is what a prospective buyer needs before they go shopping for a home. After a lender verified income, credit and money in the bank or available cash to buy they will issue a letter that confirms how much the buyer can qualify for. This letter of confirmation is typically provided to the real estate agent and or the seller as proof of the buyers ability to buy before a transaction is considered. The Pre approval process with Low Rate co takes minutes and is valid for up to 120 days.

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