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Rate Quote Reality

No one in our industry slogging it out in the trenches everyday needs to be told that properly educating our prospects is both the most important thing we need to do while often also one of the more difficult tasks to boot.

It’s amazing, though not entirely surprising given the history of misleading advertising that we’re forced to contend with those companies that still publish rates as though they were as easy to choose as the gas you select at the pump.


30 Year Fixed Rates

5.50% / 0 Points

5.25% / 1 Point

5.00 2 / Points

Press the button and pump away.


Adverse market delivery charges, loan level price adjustments, credit scores, LTV, CLTV, HCLTV, rate term, limited or cash out,  DU refi plus, FHA, High Cost, conforming, jumbo, High Balance, subordinate liens or not, was that temporary limit extended or will it expire this December only to be extended again before being made permanent when the adopted step children Fannie and Freddie marry unofficially and officially move into the big house together to become part of “Govie Mae”…. home of the permanent 4% mortgage?

Ahhhhh yes…the simple days are done.  Yet the deceptive ads continue.

Unfortunately for some, we’ll never get the chance to speak with those that blindly trust in too good to be true ads. But hey, don’t you have an abundance of 45% LTV, dual W2 wage earners with 785 Fico’s, 18 years on the job, 12 months of reserves in their checking account, a single family house in an appreciating marketplace and a current rate high enough to pass the benefit test to justify refinancing and despite all this, the willingness to provide signed letters of explanation and documentation to prove that they really are who they say despite the maiden name from 18 years ago that appears as a name variant on their credit report that’s holding up their commitment? No? That’s too bad, there really is such an abundance of these out there and that of course justifies those ads doesn’t it?

Embellished a bit, tonque in cheek maybe? Yeah, but not by much.

Anyway, wanting to quickly yet effectively convey the reality of the marketplace to assure my prospects and yours with all they need to know about what we must contend with in the delivery of an honest and applicable rate quote, we’ve constructed the following flyer.


Click the image to download a copy for your own use with the compliments of Estate of Mind, Inc.

Email this to your prospects when they’re looking for that 4.00% rate and it just might save you some explanation time so you can invest it instead in running credit, researching value, analyzing documents and working up a proper and applicable analysis. The more our consumers learn the reality of the process, the more they’ll learn to ignore those that persist in the promotion of ignorance, deception, bait & switch tactics and foster general bad perceptions of our industry.

August 2, 2009 by · Leave a Comment

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No Responses to “Rate Quote Reality”
  1. Mark Green says:


    What a great article and I love the flier too. Thanks for sharing it with Top of Mind Blog readers. It does a great job of addressing an objection before it ever arises with the borrower. More importantly, it sets proper expectations.

    So many unscrupulous originators bait and switch using artificially low rates in their advertising. The government can’t possibly regulate this effectively enough so it’s essentially the wild wild west when it comes to mortgage advertising.

    By the way, I think this is precisely the type of issue we ought to address with our Mortgage Professional Code of Ethics at Mortgage Revolution!

  2. Thanks for the kind words Mark. It’s always my pleasure to share.

    I look forward to helping to establish the MPCE at the Mortgage Revolution event in January and have high hopes for all that we may begin to accomplish with it.

  3. As always – Brian, you are on top of things. Help, though, i can;t seem to get the cool flyer.

    C the I

  4. Dan Kublawi says:

    This is outstanding. The flyer is a great reality check for buyers. Well done.

  5. Thanks Dan and Chris.

    To download a copy you just need to click the image, not the web site link but no worries, I’ll email one to you right now.

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