Throwing stuff at the internet to see what sticks
Friday, March 21, 2003 Less is Mortgage
Trash and I refinanced our mortgage last August and we've been eating caviar for breakfast ever since. Okay, obviously that's not true, since I can barely talk myself into getting out of bed as it is without facing fish goo, but it's been nice paying that much less vig every month.
But Trash's sister works at the company that currently owns our mortgage, a company whose name, in conjunction with a wagon, was immortalized by a song in The Music Man. So we've been hearing about how mortgage interest rates hae been going even farther and farther down. With every eighth of a point, Trash has been threatening to refinance again. The only thing holding us back has been the inconvenience of closing. It's not just taking the time off work to go to an office and sign and initial papers until our very names have lost all meaning; it's dealing with people whose level of competence, in our experience, is so low they aren't qualified to stay home.
Then we found out how easy they're making it. Instead of asking you for documentation, they ask you for none. Instead of appraising your house to determine its value, they take your word for it. Best of all, instead of making you spend thirty minutes drinking bad coffee in a closing office, the mail you all the paperwork so you can just sign it and mail it back.
All of this convenience, and why? So you can give them less money. Granted, this option is only available to current mortgage holders with great credit, but one wonders how this business model benefits the company. I mean, talk all you want about customer loyalty, but how valuable is our business if the interest we're paying is barely enough to keep the break room in plastic spoons? Listen, I'm no economist...
I was actually done with that thought. I'm no economist.
But I do wonder if we're in some sort of reverse bubble. The last tgime this kind of giveaway was standard practice, we ended up with the phrase "dot-com casualty." Obviously I got into the game to late and too small to get hurt, but Blogger being free is the only thing that keeps me from operating at a loss.
On the other hand, I don't really need to make money as a blogger, because the next logical step is for mortgage companies to start paying me interest. And when they're hemorraghing money in my direction, I'll be able to raise the funds to do something I've always dreamed about.
Start my own mortgage company. posted by M. Giant 10:14 PM 0 comments