Federated Lending Corporation

Mortgage Mistake #1 : Refinancing with the bank that Holds your Mortgage

Your home mortgage is one of the largest investments in your lifetime. For many, it is the largest debt they will ever assume. Saving 1/8^th to ½ percent in rate is a large savings over time. Spending time and effort for the best financing option is no different than considering an investment in the stock market. You should proceed with care and caution. Most people assume refinancing a mortgage with the bank where they send their mortgage payment will be easier, faster and cheaper.

Most banks sell their mortgages to the Federal Government and only collect your payment and forward it to Uncle Sam. They don’t have ownership and cannot authorize a rate reduction, cash out or term change. In other words, even if you go through your original mortgage lender to refinance, you are starting over. If you are starting over, you should shop.

Most people assume since they send their payments to the bank, the bank provided the money and owns their mortgage. The banks have all their paperwork and it will be easier. Unfortunately, this is rarely true. Most banks sell the mortgage to the Federal Government and get paid a fee to collect your payment as well as benefit from holding your escrow payments. They like this arrangement because they can increase deposits and send you advertisements for other services and build their relationship with you.

Why work with Federated Lending? 

• We are an independent mortgage banker and only perform mortgage services. We don’t handle deposits, annuities, IRA’s, insurance, CDs or other financial products. All we do are mortgages and our focus on mortgages allows us to do them better.

• We are local, fast and efficient. We have lower overhead than a large bank. Lower costs for us mean better rates for you. Our job is to get you the best mortgage product for your needs with the best rate, and the lowest fees. We understand that and encourage you to shop our rates.

• We have been in business for over 21 years and have had the proud honor of serving customers thru multiple purchases and refinances. Unlike large banks and institutions, we can safely and securely resurrect old files and paperwork to save people time and effort.

• To a large bank, you are sometimes just a number on paper. You’re not just another loan to us. Earning your business provides jobs to your neighbors. We have a stake in this community and are highly motivated to make your experience better. When you are considering any type of mortgage, I invite you to contact me to see how our local business can help you. Thanks for your consideration.