Why should I go with Trust Mortgage of Bemidji Inc. instead of someone else?
Why pay thousands in closing costs when you don't have to?
In traditional financing, you pay closing costs equal to about 2.5% of your
loan. This is means about $2,500 for every $100,000 borrowed. If you ever
refinance later you pay another $2,500-3,000 more in closing costs.
How our program works:
It's really quite simple. We accept a reduced profit from the lender and pay
your closing costs with the difference. The only expense you have is a one-time
application fee of $500. As a Mortgage broker, we have the ability to work with many
different lenders and investors. In this way, we are able to find the best
program/rate for you, the customer.
Sounds too good to be true.
One way to understand it is to think of it as a travel agent who looks for the
best deal from a host of airlines and lets you know your best options based
on your needs. This is exactly what Trust Mortgage of Bemidji Inc. does for you in finding a
loan for your home. In doing so, the lender that we use pays a commission to
us for originating the loan. This is called the "Service Release Premium."
In essence we are "selling" the loan to the lender and earn a commission for
doing so.
This commission or "Service Release Premium" is usually somewhere between 2-3%
of the amount of the loan. With that money, we are then able to pay your closing
costs and still make a profit on the loan. Because we are a small company, we
have limited overhead and expenses. We are then able to be profitable on a
smaller margin than say, a large mortgage firm.
