The Lowest Rates...really?

So if you're curious as to just how, and why, our rates are so much lower than what other companies offer, we think the following explanation should help. 

When it comes to getting our industry dominating rates, there are three key ingredients that make up our "secret sauce". Individually, each without the other, would result in lower rates. But when all three are combined, the results are the lowest rates you will find.

Ingredient #1: the lowest base


The "lowest base" refers to the wholesale investors we secure our money from. With over two decades in the mortgage industry, I've dealt with hundreds of banks, wholesalers, private money lenders, and investors of all types. I know how the secondary market works for pricing loans, and just where to get the cheapest money from (while also knowing which sources have the best reputation, track record, regulatory compliance adherence, and dependable service). For example, it does no good to work with an incredibly priced wholesale investor, if their technology is terrible, or their service is erratic, or their funding is late or problematic. It takes a great base rate for sure, but the other necessities are imperative as well.


Through a lot of trial and error, we've been able to secure relationships with the absolute lowest base priced investors, who also provide the great service and leading edge technology.

Ingredient #2: the lowest costs


Having the lowest base is a great start, but without lowering the costs, we'd only achieve a small improvement with our rates. It's through implementing various technologies that remove pointless friction and congestion in the system, that we're able to reduce costs significantly, thereby getting us closer to the goal of offering industry leading rates.  


As with any industry, costs play a big role in the eventual price (or the "rate", as is the case in the mortgage industry). To better understand this, in 2017 the average loan cost over $8700 to originate and close. That was the industry average for all lenders, brokers and banks. Our costs were and are about $1200. Obviously this is a huge difference! It benefits you tremendously, because we're able to pass those savings to you in the way of a much lower rate.


Some of the measures we've taken, and technologies we've implemented, in order to reduce costs so substantially, are::


  • An online application that is intuitive, easy to navigate, and makes any borrower feel at ease. This saves time, which saves money.

  • Our website "Borrower Portal" where our borrowers (and their realtors partners, if it's a purchase transaction) have 24/7 access to check the status of their loan, view what conditions are still required (and those that have been received and approved), as well as upload required documents. This can all be done through our state of the art mobile app as well. 

  • Software that verifies income and assets automatically (therefore most of our loans don't require the usual income and asset statements).

  • Our mobile portal/app that provides all the conveniences of our website "Borrower Portal", with the convenience of being able to do everything on the go (including the added convenience of being able to take pictures of documents we require and uploading them right from your phone).

  • The utilization of our "Insta-Quote" technology, that gives borrowers (and their agents, if applicable) 24/7 access to rates and the means to create automated rate alerts.


Technology, and the resulting reduction in costs, are critical in getting amazing mortgage rates. But we needed one more thing to really stand apart from our competition in this vital area.

Ingredient #3: the lowest greed

Simply and honestly put, most lenders, brokers and banks, are simply greedy! The amount of net profit, after their already higher base and bloated costs are factored in, is about 50% higher than ours when it comes to conventional loans, and about about 200% higher on FHA and VA loans)! Most other companies want, and usually need, to gross far more than we do on each loan. The reasons are many, such as:


  1. a higher base rate (price)

  2. substantially higher fixed costs, such as:

    • ​expensive offices

    • too many layers of various managers
    • too many overpaid managers and owners (most make six to seven figures)
    • overpaid loan officers
    • too many people involved in the loan, because more quantity has to make up for less quality
    • systems that are antiquated and disjointed with each other

    • processes that are laden with inefficiencies and annoying redundancies (i.e. having to email/fax the same thing repeatedly)

  3. a higher required net profit margin on each loan

Other companies have to make more on each loan than we do, it's a simple as that. Their costs for money are usually higher, the fixed costs are always higher, and their desired profit always exceeds ours by quite a lot. 

In conclusion...


It's our lower base price, costs and greed, that enables us to provide the amazing rates we have. We hope you'll give us the opportunity to prove this to you. Contact us us with any further questions you might have regarding this subject or to see how amazing our rates really are!

Calvary Mortgage
 A division of Celebrity Home Loans
NMLS# 227765
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