Low PA Interest Rate (APR) Guarantee for your Pennsylvania Mortgage.  Lowest Rates.
Straight talk on how and why mortgage companies differ in rates and fees, and how lenders get paid.

Give us the opportunity to match another lender's rate, even if it is lower than ours, and beat their closing costs.  
 

QUESTION: Which is the best offer for someone who is taking a 30 year loan and plans to stay in the house for at least 10 years?
Lender 1 (high fee, low rate lender):
5.75 % with 3 points
$3,100 in loan fees plus points
Lender 2 (normal fee and normal rate lender):
6% with 3 points
$795 in loan fees plus points
Lender 3 (low fee, high rate lender):
6.375% with 3 points
$375 in loan fees plus points

ANSWER to which is the best deal: 
Lender 1 is artificially lowering their rates by charging you additional points in disguise as fees.  Most people never pay more than 3 points.  You would need to keep that mortgage (not sell the house or refinance) for over 15 years to make up for paying the extra points.  Most people do not keep a mortgage that long and a good loan officer would advise against this scenario.  If you do make it to the long "break-even period", you waste your money on those extra fees.  That is why the industry standard mortgage carries 0-3 points.
Lender 2 makes their income off a modest combination of fees plus rate.  We believe this is in the borrowers best interest.  It financially benefits the vast majority of borrowers.  
Lender 3 makes their commission by greatly "upselling" the rate.  This, while it saves $420 in closing costs, will cost the borrower $11,530 more over 30 years for a $130,000 loan.    Large banks often price their loan like Lender 3.  This is only good for a borrower who knows they are going to move or refinance in less than 1.5 years, which is very rare.

We price our loans like Lender 2 (the correct answer to the quiz) , to benefit the majority of borrowers, though we can change that to beat offers in the other categories if a customers prefers that.  

Note: Any lender can offer any of these options.  We can get paid by either collecting fees directly from you or by raising the rates above our wholesale cost (upselling).  Lender 1 makes their commission off fees you pay them directly at closing.  

Lenders who price like Lender 1 are regarded unfavorably in the mortgage community because they tend to flaunt their low rates, and hide their fees.  Uneducated borrowers see this low rate, and don't ask questions about the fees or understand that a low rate is not all that matters.  

The total cost of a mortgage is a combination of the interest rate plus the finance charges (lender fees).  This is how the Annual Percentage Rate (APR) is calculated - which is the total costs of obtaining the loan expressed as a percentage.

While we can not guarantee other lenders accurately calculate their APR, we will beat their offer as described above, which definitely results in a lower APR.

Please keep in mind we offer a free float down option on most of our programs also, so the best deal you receive from us when you apply can get even better if the market improves before closing.

Please call us at 610 326-2099 if you wish to learn more about how we can beat a competitor's offer!