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Course for Homebuyers
Objective: To help students understand that although individual mortgage
companies have created the illusion that they are offering different mortgages,
the fact is that a mortgage is a mortgage. (Click lesson to expand).
 | Lesson 1
 | Rates for conventional mortgages are tied to the yields on the
bond market. As a result, individual mortgage originators have nothing
to do with rate pricing. |
| (This dependence can cause rates to change slightly or
drastically on a daily basis depending on the market activity and the
inflation indicators). |
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| Lesson 2
| Despite appearances to the contrary, all conventional mortgages
are exactly the same. Mortgages are generic, so the prices of those
mortgages should be generic. But they're not! |
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| Lesson 3
| Mortgages from different companies appear to be different
because the rate you pay mortgage originators is based on the cost of their
services, not on the cost of the money they lend you. |
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| Lesson 4
| Advertising mortgage products with points, without points, with
fees, without fees, et cetera, makes it confusing to compare which is the
best deal. As a result, it is extremely difficult to decipher the
price for the service. |
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