Hello friends,
Below is a blog I posted on Keith Byrd's website, http://www.slocountyhomes.com/  Make sure to check out the article at the end of my blog that inspired my rant. 

Ryan's Mortgage Blog:

I was bothered recently when I heard a few of my friends had friends either refinance or purchase a home recently without consulting with me first.  I would understand if they don't trust me or think my business is garbage, but I am confident that is not the case.  I was upset because if they would have taken a second to tell their friend to contact me, a 5 minute conversation could have saved their friends money and a large headache. I don't get upset if someone doesn't choose to use my company or myself, that is their choice and I respect it but I do get bothered when people do any of the following:

1 - Rush into a Mortgage/Refinance
2 - Use a broker they do not know or trust (sometimes this is the only option and can be fine)
3 - Do not ask for a second opinion if they aren't sure about things

My point is I don't like to hear of people getting burned. If friends of my friends get a great deal and are satisfied, I am happy for them, end of story.  If they get a bad deal, pay too much, etc... I get upset and confused.  Why didn't they ask me if what they were doing was right?  I am not saying I know everything but if I can't answer their question or solve their problem, I will be darned if I couldn't refer them to someone who could.  I am not even saying it has to be me, just talk to someone different from the original company. I want my friends and their friends, or anyone for that matter to get a good mortgage with good service.  I don't like to hear people getting talked into things they do not want or understand.  I guess if they don't care where their money or investment goes than this is a moot point. 

I tell my friends (most already know) and I've told you guys...ask me a question and I will answer you honestly and won't sugar coat anything.  If you want to know how much your mortgage should cost, or what type of mortgage would be best for your situation, just ask. If you want to know if Company A's product is better than Company's B product, just ask.  I don't charge people for my time, I enjoy helping them!  I guess you could say I believe in good Karma.  I believe in my company 110% and know we have some of the best products and customer service out there, but I also know sometimes there are better deals out there and I wouldn't steer you away from there.  These friends of friends I was talking about got themselves into a sticky situation and came to me after the fact and now I can't do anything for them since they signed everything.  

The reason I decided to write on this topic (again) was an article I read this morning that was pretty blunt (kind of offensive if you ask me...calling some people "dumb" and "stupid"), but it did make a great point... Check it out below.

Please feel free to contact me with any questions or scenarios...  RBaker@PeregrineLending.com or 805-540-0866. 

Survey Suggests Stupidity Is Rampant Among US Mortgage Holders

Jul 10, 2007 -- How clueless are American homeowners when it comes to their own mortgage? A recent survey offers a stunning answer. Hint: It's pretty bad.

Coupled with rising problems in the subprime sector, a surge of foreclosure activity has led policymakers to believe that many homeowners are confused about the type of mortgage they took out and have no idea how to manage it properly.

In an effort to determine whether or not homeowners are really that clueless, Bankrate.com recently commissioned a poll of more than 1,000 adults.

According to survey responses, American homeowners are a lot dumber than everyone thought they were.

Out of the 1004 people polled, 34 percent had no idea what type of mortgage they had. In other words, they didn't know if their mortgage was a fixed rate, an ARM, or an interest only loan.

Yikes.

The homeowners in the poll who actually paid enough attention to know that they had an adjustable rate mortgage were then asked what they planned to do when their interest rate adjusts. Again, a whopping 34 percent didn't know.

The remaining: 36 percent said they would refinance to a fixed rate, 4 percent said they would move, and 2 percent said they would take out another ARM.

And get this: 24 percent said they didn't plan to have the loan anymore when it readjusts.

Uh...Why not?

If the loan won't be refinanced, and there is no intention to move, what exactly is the plan? Foreclosure?

When questioned about the apparent ignorance of those surveyed, Kim McGrigg, a spokeswoman for Money Management International, told Bankrate.com the results aren't that shocking.

'Unfortunately, with the increase in demand for counseling that we've seen, that fact doesn't surprise me as much as it would have just a few years ago,' McGrigg said.

If nothing else, the survey begs the question: are the loan products being issued today too difficult to understand or are people so eager to realize the dream of homeownership that they will take it anyway they can get it?

The answer is debatable. On one hand, an option ARM can be difficult for an Average Joe to understand-especially when it is being explained by a smooth-talking broker who wants to close the deal as fast as possible.