Hack Your Mortgage

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The onboarding experience here is pretty awesome... nice work!
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Having over 10 years experience in the industry, I was interested and had to take a closer look. The rate that was offered was almost a whole 1% over the market rate.
@FelixReznik Hi Felix, thanks for your comment. I can assure you that we charge nowhere near 2% commission for our service. We charge a low, flat fee of $1,499 at loan closing, which is already included in the loan's interest rate so borrowers don’t have to pay it out of pocket. That means that for a borrower applying for a $250,000 loan, our fee comes out to less than 0.6%. Since one of the core tenets of our company is full transparency, our pricing is clearly explained on our site for everyone to see. Our simple and straight-forward pricing structure also makes our rates extremely competitive. We have never seen a disparity in rates like the one you described. I will say, however, that other mortgage companies sometimes advertise rates that are based on many assumptions about a borrower: for example, they often assume the borrower has an excellent credit score. We don't do that. We only show you rates and loans based on your loan profile and your specific needs. You will not find any rates displayed on the exterior pages of our site. You actually have to go through our initial interview to see rates for which we are very confident you will qualify for. We are not into playing that bait-and-switch game that unfortunately plagues the industry. Thanks again for your comment!
@jafridi I'm not saying that you guys do bait and switch. I was just saying that your rates are much higher then otherwise available. I am not basing this off some advertised rates. I am basing this off my own rates (as I've stated I'm in the industry) so if you are making just $1499 on a loan that's $250k while offering the rate that I was "quoted", then you are the ones getting fleeced :). Because I can offer a rate (for the same scenario I input into your system) that's nearly 1% lower and I would make $5k commission on that loan. What banks do you broker out too? I work with Plaza, Freedom, Provident and a couple others.
@jafridi so I ran another scenario. The A+ Type of loan that would go to Provident and you guys came out to exactly the same as I would do. And you're absolutely correct. Based on all the info that I could see on your loan details page, you would only make about $1500 like you said, while offering the best rate possible. So know I'm wondering if either 1) there may be a bug somewhere in your pricing engine or 2) your not as competitive on the lower quality borrower. Either way, good job and good luck. It's a thought business these days and $1500 is not a lot to make on each deal. Thus one of the reasons I've decide to exit the industry :)
@FelixReznik Thanks for taking the time to go through it again. We just did an audit of our pricing engine and didn't find any bugs. We also ran a scenario for a lower quality borrower (credit score of 620) and found that we are still very competitive when compared to market rates. In any event, thanks again for your time and best of luck to you too!