Free in 15. . .

9 12 2011

The word “mortgage” is made up of two Latin roots: Mort, which means death, and -gage, which means grip.  So a mortgage is a deathgrip on your finances, a long-term deathgrip.

But it doesn’t have to be this way.  Just last week I was able to help another three couples slash their interest rate, lower their month payment, and start the path to paying their home off in a few short years.  In each case, the couples saved over $110,000 in interest alone.

How many more vacations could you take if your home was paid off 15 years sooner?

How much sooner could you retire if your home was paid off 15 years sooner?

Would you like to see how your life could improve?  Please call me.

Wilhelm Koenig



FAQs on how to get the lowest rate: (It’s easy)

6 06 2011

When a client tells me they want to get the lowest rate possible, I think, “Great.  You’ve come to the right place.”  The truth is that we all have the lowest rates.

No one “owns” rates.  No bank or investor corners the market on interest rates.  We all get our rates from the same market.  If you give your information to 10 lenders in town, you will probably get the same rate from all of them, which will be the current market rate for your loan scenario.

“But some lenders use their own money, and could offer below-market rates, right?” 

Banks measure risk to make a profit on their assets.  They either do this well, or they get bought by a larger bank.  Yes, some banks use their own money, usually for loans that they can’t sell on the mortgage market.  But if they do this, all the risk lies with the bank—this means they will either offer an adjustable mortgage so the borrower carries the risk of market adjustments, or they will price the loan high enough so their profits will offset the worst-case rate scenario.  Banks understand risk and offer products that will allow them to stay in business.

“But my loan guy promised he could get me the lowest rate”

Would you trust a stockbroker that promised a guaranteed return on stocks?

“But can’t a lender or loan officer choose to make less?” OR “How did the LO Comp plan affect this?”

It leveled the playing field even more.  Now lenders can only be paid on the loan amount, which means they have no incentive to make more money by giving you a higher or lower rate.  So, even if a lender or loan officer wanted to give you a lower or higher rate, he is forced to offer what his company will allow, which are market rates with the bank’s profits already priced in.

“So what does this mean to me?”

Since the rates are the same, the biggest ways to save on your loan

 are to get expert advice on how to structure the loan to meet your life needs.

Just think– It would be stupid to invest your child’s college money into an investment that was “locked away” until after they graduate, even if it had a higher rate of return.  It would be like buying a car to use as a fancy paperweight.  In the same way, many people end up spending thousands more on their home financing because they get a good rate and the wrong product for their needs.

Please reach out to me for both market rates and expert advice.  Here to serve,

Wilhelm Koenig


Green means go!

14 03 2011

Green.  It means go.  It means spring.  It means cash.  And for mortgage-backed securities, it means dropping rates

If you can handle the scare, click HERE to check out the national averages for 30 year fixed rates from 1986 to the present.  It’s sobering to see how cheap our home buying money is right now.

Over the past 30 years, the average mortgage interest rate in the US has been over 7%.  This means that today you could buy over $50,000 more house for the same payment or buy the same house and save over $74,000 more dollars. 

If you were unable to refinance this past year, now is the time to speak with a qualified lender to learn how much green you can save. 

Here to serve,