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Separate Your Donations from Your Mortgage Loan

There has been a tremendous wave of patriotism in the United States over the last few months. Following that, the stars and stripes in our logo should show our desire to stand shoulder-to-shoulder with America. However, just the other day, we were sent a copy of a direct mail letter canvassing a consumer's neighborhood. In an effort to further your education in home mortgage loans, we'd like to share it with you. To save us from any lawsuits, we'll rename this company "Shameless Mortgage, Inc." Here's what Shameless Inc.'s mailer said:

"During the month of November, we will donate $25.00 dollars for every 1st mortgage loan that is funded during that month. If you feel the need to refinance to obtain a lower rate or get cash out, now is the time to do it, not just for you, but also for a worthy cause. God Bless America."

Now, we're not saying everyone has to be completely above self-aggrandizement at these times, but let's get real for a second.If you want to donate $25.00 to the Red Cross or the Firemen's Fund, or any other charity, please do so directly.When our fellow americans are in need, we should support them.However, save your mortgage loan for mortgage loan business. Why, you might ask? Well, read on, true believers...

There are several key points in the above direct mail advertisement that stand out to the eyes of the trained mortgage professional (such as ours, of course).First, Shameless insists on only donating on loans that are "funded during the month."Why? Because, by waiting for funding, Shameless will get their commission from your loan first, so they don't have to dip into their own coffers to cough up the $25.00.How amazingly selfless of you, Shameless Mortgage.

Next, Shameless will only donate on "1st Mortgage Loans."That's because Shameless knows that on a first mortgage loan in the canvassed area, Shameless stands to make $3,000 to $5,000. Too bad it doesn't make that much profit on home equity loans or HELOCs, or maybe shameless would be a lot more "generous." Yeah, and, we're a monkey's Uncle.

Finally, the last act of Shameless was the following statement: "now is the time to do it, not just for you, but also for a worthy cause." Let's see if we're good at counting.The letter mentions that you should do this for you.They mention that you should do this for a worthy cause. Is it possible? Is it really possible that Shameless Inc., in the deep recesses of their generosity, forgot to name one more beneficiary of your loan deal? Who could that be? Why, of course, none other than SHAMELESS MORTGAGE, INC.! To the tune of several thousand dollars, we might add.

By not comparison-shopping your loan, by trusting in the "good-naturedness" of the Shameless mortgage brokerage, you will undoubtedly allow them to make more off you then they could otherwise. Please be patriotic. Support your fellow American. Donate to worthwhile charities directly. Meanwhile, avoid the likes of Shameless Mortgage, Inc. and force them - and their shameless tactics - out of business. Then, you'll really be doing service to your fellow American, in more ways than one.

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