5 Suggestions to Reduce the Cost of a Mortgage


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Equity Prime - Michael F NelsonSource: 5 Ways To Get A Lower Mortgage Rate | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

Obviously the most important customers in a mortgage  transaction are the buyers, sellers, and agents.  Without the buyers, the sellers, and the agents – there is no need for financing.

The strongest borrower is well qualified with a low-cost mortgage!

One of my many responsibilities in lending is to make sure the buyer has the right product which maximizes their ability to borrow and close on time.  It is not only my responsibility, but also in my best interest to leverage cost savings opportunities of the borrower.  Why? The lender business is about  relationship.  A buyer who funds on time is a well qualified borrower.   In most cases the strongest buyer will also be the borrower with the lowest cost.  Low cost  impacts important borrower ratios such as loan to value and debt to income.  Debt to income and loan to value are important in all mortgage transactions and directly impact the borrowers ability to qualify.

I like the article attached to my blog – written by Gina Pogol.   Her five suggestions are spot on:

  1. Add 1 point to your credit score
  2. Consider an adjustable mortgage
  3. Close faster
  4. Borrow less
  5. Shop more

puzzle pieceReview all 5 of these suggestions with your lender – you should not have to ask!

I cover the first four of her suggestions in-depth with every  borrower.  Suggestion number 5 is wise counsel as well.   Every borrower should shop the market (more about this later).

Depending upon the financial situation of the borrower, each one of her suggestions can save significant money.  In Colorado,suggestion number three can be especially difficult.  Because of the appraiser shortage in CO, closing loans, even a refinance, in 30 days is challenging.   Longer locks are always more expensive.  Make sure you work with an agent and lender who understand the appraisal situation in your market and can get the required inspections done in the shortest amount of time possible.

So why does suggestion 5 not give me pause?  It is simple.  My team and my company want to compete for the trust of our borrowers.  I already discuss in detail the suggestions in the attached article.  I know the “call center” lenders are pitching speed.  Speed alone is not necessarily in the best interest of the borrower.  Speed, attention to detail, and the needs of all parties is the business model my company is built upon.  Sure we will lose some deals, but we will win our share too.  We will win because we care about the specific needs of each borrower.

Equity Prime - Michael NelsonIf you are an agent – have your borrowers read this article!

If you are an agent reading this blog.  I hope you find it useful.  Feel free to pass it along to your borrowers.  The strongest buyer is also a well qualified borrower with a low-cost loan.  Call, e-mail, or text anytime to continue the dialogue.

As always, Happy House Hunting!



Michael F Nelson

NMLS: 1314188
Licensed in:

Michael Nelson - Equity Prime
Michael Nelson - Equity Prime, LLC
Michael Nelson - Equity Prime, LLC




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Michael Nelson - Equity Prime

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