We just noticed this comment to a post from April 5th.
Melanie McLister said...
Hi All, Unfortunately there is a wee little inaccuracy here. The GMAC 107% mortgage does not give you 7% cash back. It provides 3% cash back. The other 4% is a lender fee. There is no extra CMHC insurance on this mortgage because it is self-insured by GMAC. (That's what the 4% is for)
The loan-to-value (LTV) of this mortgage is therefore 107% -- not 112% as the story suggests.You can read more about this mortgage here:
Or feel free to email me
at firstname.lastname@example.org if you need more info.
I'd been ranting about so-called alternative mortgage products. Melanie corrected me, which I am happy she did. I don't always go digging too deep, shall we say, into what I read and write about. So I was wrong and I say so. And this is the greatest thing about blogging IMHO.
So to check out who Melanie is, I clicked on her link. It's obvious from her comment that she's involved in the mortgage business and is likely a broker. I'm pleasantly surprised that she's also a blogger and didn't simply link to her commercial site.
I don't mean this post to come across as a rant against mortgage brokers or the mortgage business. Like all businesses and the sales people that work in them, they are simply reacting to the demands of the marketplace.
Some bears might like to argue that brokers are driving the market in a certain skyward direction--and you can feel free to make that argument in the comments if you'd like--but this bear believes that the market is an emotional machine that sways back and forth between the pressures of the consumer and the pressures of the sales people. Information bias is everywhere, it definitely exists in the MSM, it definitely exists on Melanie's blog, and it most definitely exists on this blog.
Our point is simply this: we think that information, carefully analyzed based on its source, is good information. It gives us insight into the 'other side' and may prove to save us time, money or from a bad situation. One of us sells mortgages (no commissions involved) but the other one of us thinks that using a mortgage broker can be a good thing too. We'll happily let them compete for our business when the time comes. What say you?